PM Albanese confirms no new tax on existing gas exports in May 2026

Prime Minister Albanese has ruled out a new tax on current gas export deals. This decision helps keep trade relations stable compared to recent calls for higher taxes.
By Newsroom | Energy, Australia |

NO NEW LEVY ON GAS EXPORTS CONFIRMED

Prime Minister Anthony Albanese has definitively stated that the upcoming federal budget, scheduled for next month, will not introduce a new tax on existing gas export contracts. This announcement comes amid growing calls for such a levy to bolster government revenue. Albanese has pushed back against the advocacy for this tax, labelling campaign efforts as “dishonest.” The core signal is that Australia’s international commitments regarding liquefied natural gas (LNG) exports are being prioritized over potential domestic revenue from new taxation on current agreements.

TRADING PARTNERS ASSURED

The Prime Minister's stance appears aimed at maintaining Australia's reputation with its international trading partners. Sources indicate this move is to fortify Australia’s international standing and soothe nerves in key markets like Malaysia, which relies on Australian LNG while supplying diesel to Australia. The government is reportedly weighing other revenue-generating options for the budget, but a tax on existing gas export deals is now off the table.

Read More: US Crude Oil Stocks Drop 1.79 Million Barrels in Week Ending April 24

DOMESTIC DEBATE CONTINUES

Despite the Prime Minister’s pronouncement, there is still internal discussion within the governing party regarding gas policy reforms. Reports suggest that less dramatic changes, such as reforms to the petroleum resources rent tax or a tax targeting windfall profits, have not been definitively ruled out. There is noted strong support inside the Labor caucus for gas reforms. Earlier public commentary from figures like David Pocock had suggested a gas export tax could address supply issues and cost increases, with accusations of the government “caving to gas companies” if it rejected the idea.

PROTEST CHARGE SEEN SEPARATELY

In a separate judicial development, a protester facing charges related to an "insane" pro-Palestine chant has reportedly refused to enter a plea. The court has entered a plea of not guilty on their behalf. Details regarding the specific circumstances of this case are limited.

Read More: Australia Inflation Hits 4.6% Due to Iran Fuel Prices

BACKGROUND:

The discussion around a potential gas tax has been unfolding against a backdrop of fluctuating energy markets and ongoing budget considerations. Australia is a significant exporter of liquefied natural gas, and policy decisions in this sector have implications for both domestic energy supply and international trade relationships. The government has been navigating a delicate balance between seeking new revenue streams and maintaining investor confidence and treaty obligations. Earlier considerations for budget revenue included various taxation strategies, with a gas export levy being a prominent, though now apparently dismissed, option.

Frequently Asked Questions

Q: Why did PM Albanese say no to a new gas export tax on 29 April 2026?
The Prime Minister wants to keep Australia's promises to international trading partners. By not taxing current deals, he protects the country's reputation and ensures steady trade relationships.
Q: Will there be any changes to gas taxes in the May 2026 budget?
The government has ruled out a tax on existing gas export contracts. However, they are still looking at other ways to make money, and some members of the party still want to change petroleum resource taxes.
Q: How does this decision affect people who want cheaper gas?
This decision means the government will not get extra money from existing gas deals to help with domestic costs. People who wanted this tax argue it could have helped lower local energy prices, but the government says it must honor trade deals first.
Q: What do international partners think about Australia's gas policy?
Countries like Malaysia, which buy gas from Australia, are now reassured that their contracts are safe. This helps keep the energy supply stable between Australia and its neighbors.