Economy / Australia
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Condensate Excise Relief Scrapped: Taxing Times For Producers Down Under
May 2008 | Industry NewsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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In a move which has dismayed producers, the federal government of Australia has removed a tax exemption on condensate in its new budget. The first budget of the new Labour government will impose crude oil excise on all condensate production from fields in the North West Shelf (NWS) project off Western Australia as well as from onshore blocks, to take effect from May 14. The tax relief on condensate production was introduced with the aim of stimulating gas exploration in the country. Its removal suggests potential downside risks to future investment in Australia's gas sector.