Anthony Albanese rules out gas export tax on existing contracts and criticises ‘populist’ campaign | Energy
Prime Minister Anthony Albanese has confirmed next month’s federal budget will not include a new tax on existing gas export contracts, criticizing a “populist” campaign calling for a tax on producers.
As reported last week, Albanese was ready to reject pressure to impose a 25% tax on gas exports over concerns that intervention could alienate Asian trading partners that Australia relies on for diesel and gasoline supplies.
In a speech to the Western Australian Chamber of Mines and Energy on Wednesday, the prime minister linked gas exports directly to Australia’s fuel security amid the global energy crisis.
“And the middle of the global fuel crisis is the worst possible time to jeopardize these partnerships or the investments that support them,” he said.
“I can therefore confirm that the budget will not undermine existing contracts for gas exports.”
Proponents of the 25 percent export tax want the new tax to replace the petroleum resource rent tax (PPRT), which they argue violates and fails to generate sufficient revenue from gas giants.
In the Q&A following the speech, Albanese defended the current PRRT, which Labor has set for 2023.
“The changes are designed to increase the amount of revenue over a period of time, which makes sense because you have an upfront investment of tens of billions of dollars and so the design makes sense, it’s a sensible design,” he said.
“Without this investment, the issue is just international [exports]. Great importance is given to exports. Without this investment you wouldn’t have domestic gas reserves here in WA because you wouldn’t have gas. “This is a very important point that is overlooked in some populist rhetoric, whether from a coalition of the far left or the far right.”
More details to follow
