Politicking over Australia's petroleum resource rent tax (PRRT) continues, with plans to raise the rate linked to “ill-informed southerners”.

The federal government announced in the May budget that it would limit deductible expenditures allowed under the tax to 90 per cent of revenue, but the Greens and some independents say that cap should be lowered to 80 per cent.

In a letter to Treasurer Jim Chalmers, Greens Treasury spokesman Nick McKim, along with independent senators David Pocock, Jacqui Lambie, and Tammy Tyrrell, pledged support for tax changes if even more extra revenue could be garnered. 

But Mr Chalmers has knocked back the proposal from crossbench senators, saying there is a strong need for increased revenue from offshore liquefied natural gas (LNG) to be directed towards essential services. 

He urged Senate members, particularly from the Coalition, to support these changes, highlighting the urgency of securing more revenue from LNG resources.

Independent Monique Ryan has labelled gas development a “carbon bomb” that could exacerbate climate change.

Meanwhile, NT Chief Minister Natasha Fyles has challenged “ill-informed southerners” opposing gas projects, dismissing critics as “teals and trolls”, and affirming the Territory's commitment to gas industry expansion, particularly the Beetaloo Basin and Darwin's Middle Arm industrial hub. 

“The Territory is not for turning”, she said, stressing the importance of local decision-making in shaping the region's economic future.

APPEA, the gas industry lobby group, has urged bipartisan consensus to ensure the sector's sustainable growth, emphasising the significance of gas supply security.

The changes impact major offshore LNG projects, including Chevron's Gorgon and Wheatstone, Ichthys owned by Japan, Woodside's Pluto, and the Shell-led South Korean joint-venture Prelude. 

The PRRT, levied once projects become cash-flow positive, seeks to expedite tax payments through caps on deductible expenditures.

While Labor remains resolute on not increasing the tax-take from PRRT, concerns about its impact on Western Australia's political landscape and offshore investors loom.

Ministers including Resources Minister Madeleine King and Energy Minister Chris Bowen, have run a diplomatic blitz to calm nerves among major foreign gas buyers and investors, South Korea, Japan and other regional neighbours.