The Greens have intensified pressure on Labor ahead of the federal budget by demanding that chief executives of leading gas corporations appear before a Senate inquiry. Senator Steph Hodgins-May, chairing the inquiry, has called on bosses from Santos, Woodside, Chevron, Shell, Inpex, and ConocoPhillips to give evidence in Canberra and Perth later this month.
Compelling Evidence Under Senate Rules
Under Senate regulations, these executives could be compelled to attend if they decline to participate voluntarily. The inquiry focuses on export tax settings, with the Greens highlighting concerns over "profiteering" as companies reap record profits while contributing little in taxes.
Labor's Stance and Global Fuel Shock
Labor faces mounting calls to implement a new 25% export tax, driven by soaring global fuel prices exacerbated by conflicts involving the US, Israel, and Iran. Although Labor supported the inquiry's establishment, it remains cautious about broad tax changes that might jeopardize fuel imports and export contracts with key Asian partners like Malaysia, Singapore, South Korea, and Japan.
Prime Minister Anthony Albanese has avoided committing to specific tax adjustments, stating, "We'll have the budget next month." This comes amid regional fuel diplomacy efforts, including recent visits to Singapore and planned trips to Brunei and Malaysia.
Potential Budget Impact and Crossbench Support
Supporters of the proposed tax, including unions, social service groups, and crossbenchers such as David Pocock, argue that a 25% levy could inject up to $17 billion into the budget. The Greens Institute, led by former MP Max Chandler-Mather, released research suggesting that tougher windfall profit taxes, potentially up to 50%, could raise between $28 billion and $57 billion by 2026.
Industry and International Warnings
However, International Energy Agency chief Fatih Birol has cautioned against sudden tax changes, warning that such moves could scare away investors. The Greens counter that the inquiry is necessary to hold corporations accountable, with Hodgins-May asserting, "The era of Labor letting big corporations write the rules and make obscene profits has to end."
As the budget approaches on 12 May, the debate over gas taxes underscores broader tensions between corporate profitability and public financial needs, with the Greens positioning the inquiry as a critical step toward transparency and fairness in the energy sector.
