A senior figure in Australia's gas industry has warned that a proposed 25% tax on gas exports would effectively shut down the sector. The warning comes as a parliamentary inquiry into the tax regime for gas companies begins on Tuesday, amid growing public pressure on the government to extract more revenue from multinationals in the upcoming May budget.
The Greens-led inquiry will hear from gas companies, environmentalists, economists, and government departments during public hearings in Canberra and Perth. A broad coalition of progressive politicians, trade unions, and climate groups is campaigning for a flat 25% tax on gas export revenue to replace the current Petroleum Resource Rent Tax (PRRT).
The campaign has gained significant traction online, with independent senator David Pocock, social media influencer Konrad Benjamin, and the Australia Institute credited with shifting public opinion. The Treasury was asked last month to model a windfall profits tax and changes to the PRRT, fueling optimism that the Albanese government is considering an overhaul.
However, sources indicate that appetite for major interventions has diminished within the government amid the global energy crisis sparked by the Iran war. The government does not want to create the perception that it is threatening future supplies of liquefied natural gas to Asian trading partners while trying to secure petrol and diesel supplies from them.
The inquiry is set to report on 7 May, five days before the treasurer hands down the budget. Meanwhile, five men have been arrested in Sydney over the alleged violent abduction of a man, and the NSW Net Zero Commission has proposed heat-safe rentals and tougher workplace safety rules for extreme heat.
