Prime Minister Julia Gillard is reportedly closer to reaching a compromise with the mining industry, with the oil and gas industry receiving its own classification in the RSPT.
Under the new agreement, the oil and gas industry would be transformed into a proposal not unlike the treatment of the new coal-seam gas industry, which would mean the 40% taxation rate would stand however it would not apply to existing projects.
If this is the case off-shore oil and gas would effectively fall under the Petroleum Resources Rent Tax.
Ms. Gillard is expected to make the announcement at a dinner for mining executives in Brisbane tomorrow night, if the deal is passed through cabinet today.
The agreement is certain to appease Queensland Premier Anna Bligh, who has been vocal in her concern the RSPT would cause to the emerging coal-seam industry.
This industry is becoming an increasingly large player in the Queensland economy, with a work ready to commence on a $9 billion project.
The announcement would mean a clear move towards an ultimate deal with the mining industry over its Resources Super Profits Tax, with the end of the week deadline for the ‘advertising war’ ceasefire rapidly approaching.