Greens Demand Gas CEOs Face Inquiry Over Record Profits and Low Tax
The Greens have intensified their campaign against major gas corporations, with Senator Steph Hodgins-May insisting that chief executives of firms like Santos, Woodside, Chevron, and Shell must appear before a Senate inquiry. The inquiry aims to scrutinise why these companies are achieving record profits while contributing minimal tax revenue to the Australian economy.
Pressure Mounts on Labor for Export Tax Reform
Labor is under significant pressure to implement a new 25% export tax on gas, driven by soaring global fuel prices exacerbated by geopolitical tensions, including the conflict involving the US and Israel against Iran. The Greens-led inquiry, supported by Labor, has formally requested testimony from CEOs, with Senate rules allowing for compulsory attendance if they decline voluntarily.
Invitations have been dispatched to key figures, including Woodside's Liz Westcott, Chevron's Balaji Krishnamurthy, and Santos's Kevin Gallagher. Additionally, ambassadors from major energy partners such as Malaysia, Singapore, South Korea, and Japan have been asked to provide evidence, highlighting the international dimensions of this issue.
Budget Implications and Political Stakes
Supporters of the proposed tax, including unions, social service groups, and crossbenchers like David Pocock, argue that a 25% levy could inject up to $17 billion into the federal budget. However, Labor has expressed reluctance to enact broad changes, citing concerns over maintaining fuel imports and safeguarding export contracts with Asian nations.
Senator Hodgins-May emphasised the urgency of the matter, stating, "The CEOs of these profiteering gas corporations need to front the inquiry and explain to the Australian people why they're taking our gas and selling it offshore for record profits, while paying almost no tax." She added that the era of allowing big corporations to dictate rules and reap obscene profits must end.
Research and Proposals for Windfall Taxes
In a related development, the Greens Institute, led by former MP Max Chandler-Mather, released research suggesting that gas exporters could amass profits exceeding $78 billion by 2026 due to ongoing conflicts. The study compared Australia's tax regime with Norway's, proposing tougher windfall profit taxes that could raise between $28 billion and $57 billion. Chandler-Mather even floated the idea of a 50% tax rate on gas exports, warning that any rate below 25% would signal Labor's prioritisation of corporate profits over struggling Australians.
Government Response and International Warnings
Prime Minister Anthony Albanese has remained non-committal on potential tax adjustments, deferring discussions until the upcoming budget. His recent diplomatic visits to Singapore, with plans to travel to Brunei and Malaysia, underscore efforts to stabilise regional energy partnerships. Meanwhile, International Energy Agency chief Fatih Birol cautioned against abrupt tax changes, likening energy investors to butterflies that flee when alarmed, which could deter investment.
As the inquiry prepares to convene in Canberra and Perth later this month, the debate over gas taxation continues to heat up, with significant implications for Australia's economic policy and international relations.
