The article argues that the Albanese government should use the current fuel crisis, intensified by conflict involving Iran, to finally impose a much tougher tax regime on Australia’s gas exporters. It says the political risks that once surrounded taxing gas companies have largely disappeared, because public frustration over soaring petrol, gas and electricity prices has shifted opinion across the political spectrum. The central warning is that if Labor does not act in the May budget, voters may punish the government for appearing to protect gas industry profits while households struggle with rising energy costs.
A key example comes from independent senator David Pocock, who asked in the Senate whether Australians pay more in alcohol excise than gas companies pay through the petroleum resources rent tax (PRRT). According to the article, that claim is true: Australians who buy beer, spirits, cider, pre-mixed drinks and even cigarettes contribute more tax than gas companies pay under the PRRT. The author uses this comparison to show how out of step Australia’s tax settings are with community expectations and to illustrate how rapidly the political mood has changed.
The piece revisits a long-running argument that Australia’s decision to open the Gladstone LNG terminal drove up domestic gas prices. It notes that within six months of production beginning, wholesale gas prices in eastern and south-eastern Australia more than doubled, and electricity prices rose alongside them because of the close relationship between gas and electricity markets. The article adds that Russia’s invasion of Ukraine then pushed prices even higher, with Australian consumers exposed to global price shocks despite the country being a major gas exporter.
At the heart of the critique is the claim that Australia does not seriously tax LNG exports. While gas export revenues have surged, PRRT revenue has not kept pace. The article says gas exporters have enjoyed an estimated $128 billion in additional revenue since the invasion of Ukraine, compared with what they would have earned had prices stayed at earlier levels. This is presented as evidence of a system that allows extraordinary windfall profits without delivering a fair return to the public.
The article stresses that support for stronger action is now broad and politically significant. The ACTU is calling for a 25% tax on gas exports, a proposal supported by Pocock, the Greens and several independents. Kate Chaney is specifically identified as someone who “has long been calling for a proper tax on gas”, placing her among the parliamentarians pushing for more serious reform. The article also notes support from Allegra Spender and Zali Steggall, and points out that even One Nation wants gas companies to pay far more in royalties. A recent poll is cited showing especially strong support among One Nation voters for a 25% export tax.
The article is sharply critical of the government’s response so far. It says Jim Chalmers’ claim that earlier PRRT changes would make gas companies pay more sooner is undermined by later revenue estimates, which have fallen. It also highlights Labor MP Ed Husic’s unusually forceful intervention, including his line that “we don’t have a shortage of supply, we have a glut of greed”. The conclusion is that voters increasingly expect governments to confront corporate power, and that inaction on gas taxation could turn anger at energy companies into anger at Labor itself.