Industry bodies across Australia have this week hit back at budding proposals to impose even higher taxes on Australia’s gas industry.
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Claiming the local gas industry is already Australia’s second-largest corporate taxpayer, Australian Energy Producers CE, Samantha McCulloch, said increased taxes would leave the nation more exposed to future shocks.
“Imposing higher taxes on gas producers would stop investment in new gas supply, leading to gas shortfalls, higher energy prices, and the closure of Australian industries that rely on reliable and affordable gas,” she declared today.
“The current surging petrol and diesel prices underscore just how important it is we ensure Australia remains able to meet its own gas needs through secure domestic supply.
“While international gas prices have surged, Australian gas prices remain relatively low, and the market is well-supplied. We should not take this for granted.”
Ms McCulloch said the Middle East conflict has highlighted Australia’s role in regional and global energy security. She said, “Australia’s reliable gas supply to the region underpins the energy security of key trade partners, and in turn Australia depends on imported fuels and other essential imports from the region.”
Ms McCulloch also called on the Government to rule out any new taxes on gas producers.
“The gas industry is already Australia’s second largest corporate taxpayer, contributing $21.9 billion in taxes and royalties in 2024–25 alone,” she said.
“As we navigate the current global energy crisis, the government should be working with the industry on how to ensure Australians continue to have reliable and affordable gas supply and remain resilient to future shocks.”
That point was reiterated by federal resources minister Madeleine King soon after, with the minister noting in a media interview that Australian gas is playing a really important role in the region, providing energy security to customers like Japan, the Republic of Korea and Singapore, as well as others.
She said, “That enables peace and stability in our region. And that’s what we really want to maintain right now, while we see that conflict in the Middle East.”
In the West, the WA Chamber of Minerals and Energy (CME) said it was “deeply concerned” by media reports on the introduction of a new tax on gas exports, as well as further changes to the Petroleum Resources Rent Tax (PRRT).
The CME noted the sector invested $400 billion in Australia since 2010, building projects which have created and sustained thousands of jobs while supplying the nation with reliable and affordable energy.
“Australia is currently being shielded from global gas shocks because we’ve attracted long-term investment into supply,” CME CEO Aaron Morey said.
“Increasing or introducing new taxes would scare that investment away – and leave families and businesses facing much higher bills for their gas and electricity.
“At exactly the moment we need more gas, not less, this would dramatically escalate sovereign risk. To address this, the government should immediately rule out any changes.”
Mr Morey said this was not the time to scare off the very investment underpinning supply. “And you don’t damage domestic energy security in the middle of a global energy crisis. Companies have choices. If Australia looks risky, they will simply invest somewhere else – and we miss out on the supply.”
“We have benefited enormously from being seen as a stable, reliable place to invest. This kind of intervention risks undermining that reputation and damaging the living standards of future generations,” he added.
Interestingly, the political parties that are currently promoting the tax increase on gas are mostly paying largely minimal tax, at best.
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