A new report has rejected changes to tax rules that some advocates say could have reaped billions of dollars in extra revenue from the booming LNG industry.
The report by economist Mike Callaghan, released on Friday, says minor changes could be made to the petroleum resource rent tax but no wider overhaul is needed.
The report rejects any changes to the crude oil excise and commonwealth royalty schemes.
Mr Callaghan was asked to conduct the inquiry after it was found revenues from the 40 per cent PRRT levied on profits generated from petroleum commodities had halved since 2012/13, while crude oil excise revenues had more than halved.
The inquiry received a number of submissions that argued extending the commonwealth royalty regime to five major LNG projects could generate between $30 billion and $45 billion over three decades.
However, Mr Callaghan found: "The fact that PRRT revenue has been declining and is not rising in line with the increase in LNG production does not of itself indicate that the Australian community is not receiving an equitable return from the development of its resources."
Modelling for the review showed based on a steady oil price assumption of $US65 a barrel, PRRT revenue could total about $12 billion in the next 10 years and about $105 billion to 2050.
"Most major offshore LNG projects are expected to pay PRRT over this latter period," Mr Callaghan said.
The PRRT has generated more than $33 billion in revenue since payments were first made in 1989/90.
Mr Callaghan found the decline in revenues reflected "subdued oil and gas prices, declining production in mature projects, growing deductible expenditure from the recent large investment in new projects and the transfer of exploration expenditure between companies in wholly owned groups".
Having a consistent tax policy over a long period was good for investor confidence and job creation, but he recognised it was important the public was confident companies were paying their fair share of tax.
Mr Callaghan recommended the tax office be given extra funding to ensure resource companies were claiming the right amount of deductions.
Treasurer Scott Morrison said in a statement the report's findings would be considered outside the 2017/18 budget process.
A further consultation period will run until the end of August and Treasury will report back to the government by the end of September.
Tax Justice Network spokesman Jason Ward told a Senate inquiry on Friday there was clear evidence multinational oil and gas companies were not paying their fair share of tax.
"While some companies have suggested changes to the tax regime will deter future investment, this is a scare tactic to preserve the status quo," Mr Ward said.
Malcolm Roberts, from the Australian Petroleum Production and Exploration Association, told the same hearing in Perth any regulatory change could add cost and uncertainty to already-marginal projects.
He gave the example of ConocoPhillips' Darwin LNG plant, which he said required a $10 billion offshore gas development to ensure its future.
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