More than thirty years ago.the Australian Government gave a tax concession to the then-fledgling natural gas industry to encourage exploration – the first 30 million barrels of petroleum condensate from a new field would be free of excise. Petroleum condensate is the liquid oil obtained as a by-product of natural gas production. Although natural gas production is now a mature indusrty, the exemption remains.
The value of this exemption to the natural gas industry is about $600 million a year.
GetUp! is now campaigning for the removal of this “loophole” – arguing that flood recovery should be funded by cutting subsidies such as this rather than by slashing funding for renewable energy projects.