Prime Minister Anthony Albanese has confirmed that next month's federal budget will not include a new tax on existing gas export contracts, as he criticized the 'populist' campaign calling for a levy on producers. In a speech to the Chamber of Minerals and Energy of Western Australia, Albanese directly tied gas exports to Australia's fuel security amid the global energy crisis.
Budget Excludes New Tax on Existing Contracts
Albanese stated, 'The middle of a global fuel crisis is the worst possible time to jeopardise these partnerships, or the investment that underpins them. This is why I can confirm that the budget will not undermine existing contracts on gas exports.' However, he stopped short of ruling out other adjustments, such as changes affecting future contracts, a windfall profits tax, or further amendments to the petroleum resource rent tax (PRRT).
Criticism of Populist Campaign
The prime minister sharpened his criticism of the gas tax campaign, accusing it of peddling untrue information. He defended the design of the PRRT, which Labor tweaked in 2023 to recoup revenue quicker from offshore oil and gas projects. The commonwealth received only $1.48 billion in PRRT in 2023-24, a fraction of export revenue, because the 40% tax applies only after capital costs are deducted.
Albanese said, 'One of the things about the PRRT, to go back to the dishonesty of some of the debate, the changes are designed to lift up the amount of revenue over a period of time, which makes sense, because you have an upfront investment of tens of billions of dollars.' He also played down the prospect of a windfall profits tax, arguing gas prices had not surged since the start of the Iran war in late February.
Reactions to the Decision
Independent Senator David Pocock expressed disappointment, stating, 'I think it shows that we've won the argument that Australians want a fairer return for the export of our gas, but we have a government that seems to side with multinational companies.' Labor MP Ed Husic vowed to keep pushing for a 25% export levy, predicting the groundswell of public support would eventually be too hard to ignore. The Greens said Albanese's language suggested he was 'feeling the heat' from the campaign.
NSW Opens New Areas for Gas Exploration
Meanwhile, the Minns government in New South Wales announced it would open up new areas for gas exploration for the first time in over a decade, including the Bancannia and Pondie Range troughs in the far west. Natural resources minister Courtney Houssos said the move was a practical step to secure a reliable domestic supply of gas. However, the Lock the Gate Alliance expressed outrage, warning it would put communities, water, and agriculture at risk.
