Treasurer Jim Chalmers has announced a new tax on the oil and gas industry, aimed at funneling billions of dollars from the country’s biggest corporations to everyday Australians.

Grattan Institute Energy Director Tony Wood told Gary Adshead on 6PR Mornings the resource rent taxes on oil and gas companies wasn’t working productively.

“Basically, the companies were paying almost no tax – even though it’s supposed to be a tax – because of the way the accounting system let them carry forward huge amounts of cost which could be written off future profits,” Mr Wood said.

Press PLAY to hear more about the proposed tax changes facing Australia’s richest companies

Image: Getty/Martin Ollman/James Bugg