"The AGA has lobbied vigorously to have the schedule maintained at its current 15-20 year depreciation period, rather than extended out to the proposed 50 years, so this is certainly good news for the industry" said the Chief Executive of the AGA, Bill Nagle.
"While it is disappointing that the Government has not included the 15 year depreciation schedule in the cap, it is pleasing that the schedules will not be able to be extended beyond 20 years, and the AGA thanks the Federal Minister for Industry, Tourism and Resources, the Hon. Ian Macfarlane MP, in helping to achieve this.
"The AGA expects that Invest Australia-through its major project facilitation facility for major gas pipelines and other gas infrastructure-will still be able to consider more concessionary effective life schedules for specific projects.
"Extending the depreciation period out to 50 years would have meant a much lower rate of depreciation on gas pipelines and distribution networks, and would have severely threatened the development of billions of dollars worth of gas infrastructure.
"The Federal Government's decision on effective life removes one of the major impediments to renewed gas industry development in Australia. The AGA is hopeful that other central issues-such as a review of the industry's regulatory regime, and incentives to increase gas market growth-will be addressed by this year's national energy policy process, and other regulatory reviews.
