The Australian Petroleum Production & Exploration Association (APPEA) said the changes to the Petroleum Resource Rent Tax (PRRT) announced today would see more revenue collected earlier to address Budget pressures.
APPEA Chief Executive Samantha McCulloch said: "The changes aim to get the balance right between the undeniable need for a strong gas sector to support reliable electricity and domestic manufacturing for decades to come and the need for a more sustainable national budget.
"The announcement today will provide greater certainty for our industry to consider the future investment required to maintain both domestic and regional gas supply security for our customers.
"Our investments support tens of thousands of Australian workers and deliver substantial economic benefits to communities across Australia.
"PRRT revenues are already at their highest level ever, forecast to deliver revenue of more than $11 billion over the forward estimates. The PRRT changes are forecast to deliver an additional $2.4 billion over the forward estimates at current forecast commodity prices."
Ms McCulloch said: "This outcome also closes out the long-running Callaghan Review, informed by public consultation, and will ensure the ongoing efficiency and administration of the PRRT regime."
A bipartisan approach will be needed to provide certainty for future investment and APPEA calls on the government to work constructively and cooperatively with the opposition.
"Australia has also been a reliable energy-producing nation for energy-consuming countries in Asia region for more than half a century," Ms McCulloch said.
"We cannot and must not walk away from this role, which is the foundation of our strategic ties throughout the Asia Pacific. It has also been the foundation of decades of prosperity for Australians.
"Gas is going to be a critical part of the global energy mix for decades. If Australia does not invest in new gas supplies, the slack will be taken up by others, costing Australian jobs and prosperity. The US has recognised the danger of this and is growing both its gas industry and its carbon capture and storage (CCS) industry."
Ms McCulloch said gas companies were among the biggest taxpayers in Australia - an APPEA financial survey last month shows a near-tripling of the industry contribution to state and federal budgets this year, helping fund public services and infrastructure like hospitals and roads.
"This financial year alone, the gas industry is set to deliver $16.2 billion to Australian governments, including corporate income tax, PRRT, state royalties and excise," she said.
"Gas will also play a central role in transforming our energy system for net zero - backing up renewables, producing low-carbon hydrogen and fuelling Australia's manufacturing sector as well as the processing of critical minerals.
"Just as Australia has been the energy producer for Asian economies for decades, these countries are now also looking to us to help them decarbonise using our abundant carbon storage resources and this presents an exciting new industry opportunity for Australia.
"As the International Energy Agency said in its recent Australia 2023 Energy Policy Review: 'Australia is well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and support regional emissions reductions'."
