Petroleum and Gas (Production and Safety) (Royalties and Cost of Living Relief) Amendment Bill 2022
Queenslanders are doing it tough this Christmas, with rising energy bills, food prices and stagnating wages.
While this occurs, Australian gas corporations have made almost $40 billion in windfall profits over the last year, off the back of soaring energy prices.
This bill commits the government to giving every adult aged 18 and above, residing in Queensland as at 30 November 2022, a $500 cost-of-living payment, funded by tripling the top tier of gas royalties during 2023.
According to ABS data, Australia’s present inflation crisis is being caused by increasing profit margins, and is not due to an overabundance or increase of money supply amongst workers and low to middle income Australians. This has resulted in a decline in the real value of wages and support payments of more than 3.5%. The inflation crisis has also coincided with a housing crisis that has seen rents increase more than 20% across Queensland in the last year, and as much as 30% in some parts. As a result, more and more Queenslanders are being afflicted with poverty by an unjust economy which is disproportionately benefitting huge gas corporations.
According to the Australian Competition and Consumer Commission, gas corporations have had virtually no increase in the cost of production of gas over the last year, despite increasing prices to record highs, giving gas corporations no reason to pass on these additional royalties as costs to consumers.
Achievement of policy objectives
The bill will triple gas royalties in order to fund a $500 cost of living payment for all adult Queenslanders.
Its objective is to provide cost of living relief for individuals by establishing a scheme for a one-off payment of financial assistance.
All adults aged 18 or over, residing in Queensland as at 30 November 2022, will receive the payment upon completing the required form.
The tripling of gas royalties will occur as follows:
- For domestic gas, if the average sales price is more than $8 per gigajoule: 46 cents per GJ plus 0.30 cents per GJ for each 1 cent per GJ more than $8 per GH.
- For supply gas, if the average sales price is more than $8 per GJ: 65 cents per GH plus 0.375 cents per GJ for each 1 cent per GH more than $8 per GJ.
For project gas:
- if the average sales price is more than $9, but not more than $14, per GJ: 27 cents per GJ plus 0.27 cents per GJ for each 1 cent per GJ more than $9 per FJ; and
- if the average sales price is more than $14 per GJ: $1.62 per GJ plus 0.375 cents per GJ for each 1 cent per GJ more than $14 per GJ.