Following the Senate passing the Petroleum Resources Rent Tax (PRRT) last night, the Business Council of Australia is concerned about an uncertain approval process for major offshore projects.
BCA Chief Executive Bran Black said this may impact the delivery of the Government's Future Gas Strategy and major renewables projects and make the transition to net zero more challenging.
"We need more clarity for the approvals process, particularly for offshore gas projects," Mr Black said.
"Offshore regulatory reforms are needed for Australia's gas sector to ensure we have enough domestic supplies while also meeting our export obligations.
"A lack of clarity around the approvals process will also impact offshore wind projects."
"Businesses need certainty that energy supplies are secure, and projects can be approved in a timely and transparent manner.
"The Government has released its Future Gas Strategy, which the BCA has welcomed, and its implementation will only work if there is a clear approvals process that cannot be hijacked with legal loopholes.
"If Australia's offshore approvals system is not clear, then our competitiveness decreases and it will be harder to win investments in sectors where we have a comparative advantage.
"While we support a resolution on the Petroleum Resources Rent Tax, it is disappointing that it has resulted in these important reforms being deferred."
