Bosses of Santos, Woodside, Chevron and Shell asked to give evidence to Greens-led gas tax inquiry | Energy
Bosses of resource giants including Santos, Woodside, Chevron and Shell may have to face an investigation into export tax settings as the Greens increase pressure on Labor ahead of the budget.
The bosses of gas exporters Inpex and ConocoPhillips, as well as the companies’ senior executives, have been asked to give evidence to a Greens-led inquiry in Canberra and Perth later this month. Under Senate rules, they could be forced to attend if they choose not to testify voluntarily.
Labor is facing growing calls to impose a new 25% export tax amid soaring prices from the global fuel shock caused by the US-Israeli-led war against Iran.
Labor supported the establishment of the inquiry; The move follows leaks in the Prime Minister’s Office asking the Treasury to model the effects of a flat tax on gas exports, as well as changes to the petroleum resource rent tax (PRRT) and corporate income tax rules.
Supporters of the plan – unions, social service groups and crossover supporters such as David Pocock – say a 25 per cent tax could add as much as $17 billion to the budget. Labor is unlikely to embrace such sweeping changes as it tries to support fuel imports to Australia due to the closure of the Strait of Hormuz.
The committee’s chair, Greens senator Steph Hodgins-May, sent invitations to senior executives on Monday, including Woodside’s Liz Westcott, Chevron’s Balaji Krishnamurthy and Santos’ Kevin Gallagher.
The committee also requested the ambassadors of Australia’s key energy partners in the region, including Malaysia, Singapore, South Korea and Japan, to provide evidence.
The Labor Party emphasized that Australia is a reliable export partner and expects reciprocal treatment from importing countries in return, and that it will not risk export contracts with key countries in Asia.
However, the Greens said companies needed time to be “in the spotlight” before the May 12 budget.
“The CEOs of these profiteering gas companies need to investigate and explain to the Australian public why they are taking our gas and selling it offshore to make record profits paying next to no tax,” Hodgins-May said.
“The era of Labor allowing big corporations to write the rules and make obscene profits must end.”
Prime Minister Anthony Albanese was asked about possible changes to tax settings on gas exports on Monday, but refused to take up the offer.
“We will prepare the budget next month,” he said.
Separately, the Green party think tank published new research suggesting major gas exporters could make more than $78 billion in profits in 2026 due to the war.
The Green Institute, led by former MP Max Chandler-Mather, compared aspects of Norway’s oil and gas tax regime with rules in Australia and suggested tougher new windfall profits taxes could raise between $28 billion and $57 billion.
Chandler-Mather even proposed a 50% tax rate on gas exports.
“If Labor cuts the tax on gas exports to below 25%, Australians will know their government cares more about gas companies’ profits than the millions of Australians struggling to pay the bills,” he said.
Albanese has downplayed potential changes to gas taxes during a series of regional fuel diplomacy. He visited Singapore last week and will depart for Brunei and Malaysia on Tuesday.
Last month International Energy Agency boss Fatih Birol warned Labor against sudden changes to corporation tax rates, suggesting such moves would scare investors away.
“Energy investors are like butterflies, they fly away when they get scared,” he said.
