One Nation proposes royalty and equity stake for new gas projects

One Nation wants Australia to impose a royalty on all new gas production and take an equity stake in future projects, backing away from a tax on export profits or a domestic reserve for the east coast.

Pauline Hanson unveiled her new oil and gas policy at the Australian Energy Producers conference in Adelaide on Thursday, saying it would drive more exploration and production as well as give taxpayers "vastly greater returns" on the country's natural resources.

"This policy is a massive shift in how Australia gets returns in its resources," she said.

The One Nation leader told gas chiefs the failure of successive governments to secure taxpayers a "fair share" of resource profits had made Australians "rightly unhappy".

Ms Hanson said her goal was to have more oil and gas production, supported by generous tax incentives with the Commonwealth as a "genuine" partner in drilling projects, taking on both the financial risks and rewards of investing.

Hanson says gas plan is 'bold'

One Nation's policy would give companies a 30 per cent tax break for exploration in exchange for the Commonwealth having the option to buy a 30 per cent stake in new projects.

Under her plan, Ms Hanson said the government would be able to direct the gas it owned into the domestic market and sell surplus abroad.

"Any profits made on Australia's equity ownership will be put into a sovereign wealth fund to reinvest and grow, not to be rorted by … future governments," she said.

She said this new fund would be called the Australian National Investment Wealth Corporation.

"This is a bold long-term vision," she said.

The policy is similar to measures in Norway, where the government provides incentives for gas exploration and imposes a significant tax on production.

Ms Hanson said she also would replace the current tax on gas export profits, known as the Petroleum Resource Rent Tax (PRRT), with a new "simple Commonwealth royalty" on all new gas production.

"This will give the Australian people a consistent tax take, help preserve the industry's social licenses and provide the industry with predictable costs based on production," she said.

Ms Hanson did not give a figure for the new royalty, but it has been reported that the rate would be 10 per cent.

Existing projects would continue to operate under a grandfathered PRRT scheme.

She acknowledged One Nation had previously supported an expansion of tax on gas exports and a reserve for the east coast, but after consultation with industry, had decided these were not the best options going forward.

Ms Hanson did not outline any forecasts of revenue under her proposal compared to the existing settings.

Labor and Coalition criticise One Nation plan

Responding to earlier reports of Ms Hanson's plan, Resources Minister Madeleine King said Norway's approach to gas was not appropriate for Australia.

"We as a government develop our policies with a focus on Australia and not Norway," she said.

"For One Nation to cherry-pick parts of a system of another country, and they're not the only ones to be fair … just speaks to their lack of knowledge of our gas system and by the sounds of it our political system as well."

Meanwhile, Opposition Leader Angus Taylor said he did not support putting more taxes on oil and gas.

Shadow Resources Minister Susan McDonald said the oil and gas industry was already the second biggest corporate taxpayer in Australia.

"It's a huge employer of well-paid jobs," she said.

"The Coalition has a strong policy setting to ensure that we will see more investment, more activity, more mining, more drilling, and that's important for Australia as we become an energy powerhouse."