A plan to raise more money by taxing big gas and oil companies faces an uphill battle as independent senator David Pocock reveals he is willing to vote against the proposal as it stands.

The ACT senator said a proposed petroleum resource rent tax was a “disappointing” and “weak” approach from the Albanese government and called for it to be higher.

“I would much rather see the rate of PRRT raised from 40 per cent up to 50 or 60 per cent, which is what a bunch of experts are saying should happen,” Senator Pocock told ABC Radio. 

“We’ve got to actually look at getting a fair return for our resources (because) these gas companies are making record, wartime profits selling our gas back to us at international prices and they’re not even paying the PRRT which is this royalty.” 

Senator Pocock said without major changes from the government, he would vote down the proposal. 

“I can’t cop them telling Australians who are who are doing it tough that ‘I’m sorry, the budget is tight’,” he said. 

‘Then, when Treasury gives them options to actually bring in more money over time, they go for the option that isn’t going to raise more money it’s simply going to bring a bit more money in earlier.” 

The Greens, two Jacqui Lambie Network senators and Senator Pocock would support the tax reform if the government agreed to lower the deductions cap.

The bill proposes to cap tax offsets at 90 per cent of assessable income but the crossbench want this dropped to 80 per cent to secure their votes.

Lowering the cap would mean at least 20 per cent of a gas company’s revenue is subject to the petroleum resource rent tax.

It would raise and additional $2.6 billion over four years while the government’s existing proposal would reap $2.4b.

By Maeve Bannister in Canberra

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