The BGA Australia team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on upcoming changes in Australia’s workplace and resources policies.

Context

  • Australia’s energy and resources sectors are facing short- and long-term challenges as the Labor government seeks to meet the demands of its union allies and implement its ambitious climate policies. This comes as the government is pressured to advance changes affecting liquefied natural gas (LNG) projects amid fears of a sharp economic downturn for Australia’s top trading partner, China.
  • The Labor government has started to change industrial relations laws, attempting to navigate electoral commitments and increasing business demands for economic reform. The Labor Party pledged that hires would be paid at least the same as directly engaged employees doing the same work under the party’s “same job, same pay” policy.

Significance

  • A strengthened “Safeguard Mechanism” took effect July 1, requiring Australia’s greenhouse gas emitters to reduce their emissions in line with Australia’s climate targets. The Australian Petroleum Production and Exploration Association has called for a national carbon capture and storage strategy and believes gas is vital to a successful energy transition.
  • Workers at two major LNG facilities owned by Chevron Australia are preparing to strike September 7. If the strikes stop production for up to a month, around 7 percent of global supply will be lost.

Implications

  • Businesses should note that if industrial action escalates, LNG prices will likely rise. Australia is the world’s largest LNG exporter, and the ongoing dispute has stoked volatility in natural gas markets, with players concerned about the risk of long-term disruptions.
  • The government intends to legislate changes to the Petroleum Resource Rent Tax to achieve a fairer return from offshore LNG projects. Labor plans to introduce a 90 percent cap on the use of deductions.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards, BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More