Internal Pressure Mounts on Labor Over Gas Export Tax
The Albanese government is confronting significant internal pressure to raise taxes on gas companies, with a prominent social media influencer cautioning that Labor should not underestimate the scale of public outrage regarding the current tax regime. This pressure comes as Labor's environment action network, known as Lean, presented evidence to a parliamentary inquiry, urging the government to consider implementing a "very substantial tax" on windfall profits earned by gas exporters.
Labor's Environment Network Advocates for Higher Returns
During Tuesday's hearing, Lean's national secretary, Janaline Oh, emphasized the need for better returns from Australia's gas resources, aligning with Labor's national party platform. "We would definitely like to see a better return [for gas resources]," Oh stated, noting widespread support within the Labor membership for increased benefits to Australian taxpayers. This push for reform is part of a broader examination by a Greens-chaired inquiry into options for extracting more revenue from major gas exporters, including a proposed 25% export tax supported by various politicians, unions, and climate groups.
Political Divisions and Industry Concerns
Labor MP Ed Husic has reiterated his support for a 25% export levy, describing the current petroleum resource rent tax system as an "obscenely sweet deal" for companies. However, senior Labor sources have indicated that a 25% export tax is unlikely to be included in the upcoming budget, partly to avoid straining relations with Asian trading partners crucial for Australia's diesel and petrol supplies. Finance Minister Katy Gallagher, when questioned about the possibility of an export tax, maintained that government policies remain unchanged, highlighting Prime Minister Anthony Albanese's focus on securing energy supply guarantees across Asia.
Opposition leader Angus Taylor has voiced strong opposition to the tax, arguing it would "close down the gas industry," a stance that contrasts with some Liberal colleagues. Western Australian Labor Premier Roger Cook also opposes a new gas export tax, citing potential negative impacts on his state. "I understand that it's – for many people, it seems like an attractive proposition. But I don't think it would be good for Western Australia, and I've made those views clear to the prime minister," Cook explained.
Public Backlash and Expert Recommendations
Supporters of the gas tax have warned that failing to address public concerns could lead to voter backlash. Konrad Benjamin, a former school teacher with nearly 1 million social media followers through his Punter's Politics venture, testified that MPs are underestimating public interest. "A million Australians following my content online, watching someone explain gas isn't a success story. It's a symptom of a government that has stopped working for the punters who elected them," Benjamin told the inquiry.
Former Treasury secretary Ken Henry, advocating for a 100% windfall profits tax in his submission, delivered a blunt message to the committee: "Just do it. In the national interest, just do it. And stop the crap that the Australian public have put up with for decades now in respect of the taxation of Australia's finite natural resources." Additionally, Australia Institute co-chief executive Richard Denniss urged Australia to resist lobbying from countries like Japan, pointing to research showing Japan collects about $8 billion annually from taxes on oil and gas imports.
The government is currently evaluating potential changes ahead of next month's budget, with Treasury modeling a windfall profits tax and adjustments to the PRRT. However, appetite for major interventions has waned amid the global energy crisis triggered by the Iran war. The Superpower Institute, backed by Ross Garnaut and Rod Sims, is promoting a 40% cashflow levy, dubbed the "fair share levy," as a replacement for the PRRT, adding to the complex debate over Australia's gas taxation policies.
