Prime Minister Anthony Albanese has ruled out applying a gas export tax to existing contracts despite overwhelming public support, as pressure for a fairer return from Australia’s gas exports continues to build ahead of the budget.
Advertisement
Prime Minister Anthony Albanese has ruled out applying a gas export tax to existing contracts as new Australia Institute polling shows overwhelming support for a levy.
In a speech to the Chamber of Minerals and Energy of Western Australia (the lobby group representing major mining and energy companies), the PM said it was the “worst possible time” to jeopardise key trading partners.
“Our gas exports are directly linked to our national fuel security,” he said.
“This is why I can confirm that the budget will not undermine existing contracts on gas exports.”
His remarks come just a week after a Senate inquiry scrutinised how Australia taxes gas exports, with the Australia Institute warning the delay is costing Australia roughly $350 million dollars each week in foregone revenue.
“In making this decision, the Prime Minister has simply chosen to delay the inevitable,” said Dr Richard Denniss, co-CEO of The Australia Institute.
“The Prime Minister’s decision to kick the can down the road might feel politically easy right now, but it is going to come at an enormous cost to both the budget and the Australian voters’ faith in their government.”
The PM’s choice of words sparked speculation that a levy could still be imposed on new gas contracts and the spot market in next month’s budget.
“This fight is far from over. Public pressure for a gas export tax is growing by the hour, and the Prime Minister knows it, so he’s keeping the door open ahead of the budget,” said the Senate inquiry’s committee Chair, Greens Senator, Steph Hodgins-May.
The Conservation Council of WA (CCWA) said it would be an “insult to all Australians” amid a cost-of-living crisis if the Albanese government opted for the status quo.
“We’re hoping the Prime Minister is listening to the Australian people and that he’ll take steps to get a fair deal from multinational gas giants, considering the groundswell of Australians from across the political spectrum who are calling for this tax as a bare minimum,” said CCWA Executive Director Matt Roberts.
New polling by the Australia Institute shows seven in ten voters nationwide agree gas export companies should pay a 25 per cent gas export tax, including four in five Labor voters.
