Gas giants and coalition harden line against export tax
Calls for a 25 percent tax on gas exports have been rejected by energy producers and the federal opposition.
Days after Liberal industry spokesman Andrew Hastie expressed openness to higher taxes on fossil fuel, Nationals senator Susan McDonald was highly critical of the new taxes.
“The answer is not new taxes that hinder investment and private sector job creation,” an opposition sources spokesman told the Australian Domestic Gas Outlook conference in Sydney.
“And an even worse tax in response to a very well-coordinated activist campaign.”
The Middle East war has sent global gas prices soaring, putting Australian exporters in line for windfall profits and sparking calls from the Greens, unions, oppositionists and One Nation for an urgent 25 per cent tax on gas exports.
The Australia Institute says export duties would provide taxpayers with around $350 million each week and would be more effective than the current Petroleum Resources Lease Tax on superprofits.
It was reported that the Prime Ministry Ministry instructed the Treasury to model “new tax options” for the gas industry.
Labor also supported a parliamentary inquiry into the tax regime; It’s another sign that Anthony Albanese is open to making changes ahead of the May budget.
Finance Minister Jim Chalmers said there was no change in policy when asked on Tuesday.
NGO pressure has also intensified, with Greenpeace Australia Pacific activists arrested on Monday after disrupting a gas conference and holding banners titled “tax profits from gas”.
Woodside Energy has joined other gas companies to warn Australia of an unexpected tax.
Wojciech Grzech, the gas giant’s vice-president of marketing and trading, told the conference: “We do not support calls to increase tax on some of Australia’s largest employers, but it is clear that we should encourage the development of new energy sources instead.”
In his speech, the approximately $25 billion in taxes, royalties and fees that the gas producer has paid since 2011 was emphasized.
The industry’s rhetoric regarding east coast booking policy has been more muted.
Exporters will have to reserve 15 to 25 percent of gas for domestic use under the federal plan announced in 2025.
Australian Energy Producers CEO Samantha McCulloch called for a flexible design that avoids putting more gas into the domestic market than local users demand.
Ms McCulloch warned that poorly designed reforms could hinder investment in projects in areas where the risk of shortages is highest.
“This would be contrary to the purpose of these reforms,” said the head of the gas producer industry group.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
