Angus Taylor signals Coalition may reject Labor changes to petroleum resource rent tax

Angus Taylor has warned Labor against the “death by a thousand cuts” of the gas industry, signalling the Coalition may reject changes to the petroleum resource rent tax (PRRT).

The shadow treasurer made the comments at the National Press Club on Wednesday, in an alarming sign for industry that the Albanese government may be forced to deal with the Greens to pass the reform.

Labor and the Coalition are also engaged in a budget barney over the opposition’s plan to increase the income-free threshold for jobseeker, which the social services minister, Amanda Rishworth, has warned is “not costed”.

The government has proposed to limit the proportion of taxable income from offshore oil and gas projects that can be offset by deductions to 90% in a move that could collect $2.4bn over four years. The Greens and independents have suggested more extensive PRRT tax changes could raise more than $9bn every year.

The Australian Petroleum Production & Exploration Association has said Labor’s policy would “provide greater certainty” to the industry and called for bipartisan support to “ensure the ongoing efficiency and administration of the PRRT regime”.

On Wednesday Taylor was asked if he was concerned that opposing the PRRT could force Labor to deal with the Greens. He replied that he didn’t “want to get ahead of our processes” because the opposition is still “systematically and methodically” working through the budget.

“But there’s a couple of principles that are important regardless