The Australian Government’s 2020-21 Budget has reaffirmed the importance of increasing investment in the oil and gas industry and the contribution the industry will make in supporting the nation’s economic recovery following COVID-19.
As part of last Tuesday’s Budget, Treasurer Josh Frydenberg discussed the government’s plan to help unlock five key gas basins to create more gas supply at lower prices.
This includes unlocking the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basins in Queensland, which will further support jobs in Australia’s manufacturing sector.
Australian Petroleum Production and Exploration Association (APPEA) chief executive Andrew McConville said the 2020 budget acknowledged investment was a central pillar to recovery, adding that the oil and gas industry had a clear plan to support the government in driving job creation, skills development and promoting domestic spending and investment across all industries.
“The Budget, together with the government’s previous announcements on energy and technology, recognises the pivotal role of Australia’s oil and gas industry in providing energy security for homes and businesses and making a sustained contribution to government revenues,” McConville said.
The oil and gas industry has invested more than $350 billion in the Australian economy over the past decade, has contributed to government revenue through the payment of $71.6 billion in tax payments and levies and supports 80,000 jobs.
McConville said the budget was an important step in helping unlock the next wave of investment, which would underpin Australia’s economic recovery out of the COVID-19 recession.
“The announcement to introduce an investment allowance for businesses is a positive step. It will help to improve capital availability and investment, growth in wages and GDP in the same way as a company tax cut, while also raising national income. These initiatives coupled with personal tax cuts will help kickstart the domestic spending needed to repair the economy,” McConville said.
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