Australia Considers 25% Gas Export Tax Amid Global Price Surge

Australia might add a 25% tax on gas exports. This is a big change from the current system, which some say isn't bringing in enough money from high global prices.
By Newsroom | Business, Australia |

Canberra, ACT – April 24, 2026 – A growing chorus of economists, advocacy groups, and political figures are urging the Australian government to reconsider its approach to taxing gas exports, particularly in light of soaring global energy prices. The debate centers on whether current taxation mechanisms, primarily the Petroleum Resource Rent Tax (PRRT), adequately capture revenue from Australia's abundant natural gas resources, with some suggesting foreign companies are profiting significantly while the nation receives comparatively little. Calls for a substantial increase in levies, including a proposed 25% tax on gas exports, are gaining momentum, fueled by concerns that Australia is forfeiting potential billions in revenue.

Australia news live: resources minister defends gas companies as push for new tax falters; Asic issues warnings to four ‘finfluencers’ - 1

The escalating international tensions, particularly the 'Israel-US war against Iran' which began in February, have disrupted global energy markets, driving up demand and constraining supply. This has translated into substantial profits for Australian gas exporters. Amidst this backdrop, the Prime Minister's department reportedly tasked Treasury with modeling the fiscal impacts of imposing a flat 25% tax on gas exports, alongside potential alterations to the PRRT and corporate income tax.

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Australia news live: resources minister defends gas companies as push for new tax falters; Asic issues warnings to four ‘finfluencers’ - 2

"The longer we delay implementing a gas export tax, and the longer the government defends the failed PRRT (Petroleum Resource Rent Tax), the more it is costing the Australian people." – Dr Richard Denniss, co-chief executive of The Australia Institute.

Government Defends Current Investment Landscape

Resources Minister Madeleine King has publicly defended the existing relationship with gas companies, highlighting the immense capital investment required to establish LNG projects. King stated that instead of a new tax, the government is exploring models akin to the Norwegian approach, which involves taking a direct stake – a 40% share – in new gas projects and receiving a corresponding percentage of the returns. This strategy, she argues, acknowledges the substantial financial commitments made by companies in developing the industry, which is crucial for domestic gas supply.

Australia news live: resources minister defends gas companies as push for new tax falters; Asic issues warnings to four ‘finfluencers’ - 3

Opposition and Crossbench Pressure Mounts

Despite the government's stance, pressure from the political crossbench and other stakeholders remains significant. ACT Senator David Pocock has voiced strong opinions, suggesting that "wartime profits" generated by gas companies should be directed towards supporting struggling Australians. His comments reflect a broader sentiment that the current tax regime is insufficient, particularly when international crises inflate export earnings. A Senate inquiry has heard testimony from various groups, including think tanks and economists, advocating for higher export levies.

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Industry Concerns Over Potential Tax Impact

Energy industry representatives have warned that imposing new taxes could have adverse consequences, potentially triggering an energy crisis of its own and rendering projects "uninvestable." Concerns have been raised that such measures might stifle future investment in new gas projects, impacting domestic supply and regional employment. Beach Energy chief executive Brett Woods, while expressing support in principle for a strategic gas reserve, has cautioned against flawed implementation and highlighted the potential disruption a new export tax could cause. The gas lobby has also issued stark warnings, projecting that a new tax could cost Australia as much as $70 billion.

Background: The PRRT and Global Energy Dynamics

Australia's current primary tax on gas exports is the Petroleum Resource Rent Tax (PRRT). However, critics argue that this system allows many oil and gas companies to pay minimal tax on their profits. This contrasts with other resource-rich nations, such as Qatar, which employs a high-taxation system to secure a larger share of profits from its oil and gas sector. The ongoing disruption to Middle East LNG supplies, stemming from the 'Israel-US war against Iran,' has been a significant factor in the recent surge in global gas prices, amplifying the debate around Australia's fiscal policies concerning its natural resources.

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Frequently Asked Questions

Q: Why is Australia thinking about a 25% tax on gas exports?
Global energy prices have gone up a lot, especially because of the war in Iran. Some people think Australia isn't getting enough money from its gas exports and want a higher tax.
Q: What is the Petroleum Resource Rent Tax (PRRT)?
The PRRT is Australia's main tax on gas and oil profits. Critics say it's not working well and many companies pay very little tax.
Q: What does the government say about a new gas export tax?
The Resources Minister says they are looking at a Norwegian model, where the government takes a share in new gas projects instead of just a new tax. They also say new taxes could hurt investment.
Q: What are the industry's concerns about a new gas export tax?
Energy companies warn that a new tax could make projects too expensive to invest in, potentially causing an energy crisis and costing Australia billions in lost revenue.
Q: Who is pushing for changes to gas taxes?
Economists, advocacy groups like The Australia Institute, and politicians like ACT Senator David Pocock are calling for higher taxes on gas exports to get more revenue for the country.