Labor Faces Internal Pressure Over Gas Export Tax Amid Public Outcry
The Albanese government is confronting significant internal pressure to raise taxes on major gas companies, as a prominent social media influencer cautions that Labor should not underestimate the scale of public anger regarding the existing tax regime. This pressure comes amid a parliamentary inquiry examining potential changes to the taxation of Australia's lucrative gas export sector.
Internal Advocacy for Substantial Tax Reforms
Labor's environment action network, known as Lean, has presented evidence to the parliamentary inquiry into gas sector tax settings, urging the government to consider implementing a "very substantial tax" on windfall profits. Janaline Oh, the national secretary of Lean, told the hearing that this position aligns with Labor's national party platform and reflects widespread support within the party membership for better returns to Australian taxpayers from natural resources.
The comments coincide with Labor MP Ed Husic reiterating his support for a 25% export levy, which he argues would terminate what he describes as an "obscenely sweet deal" for gas companies under the current Petroleum Resource Rent Tax system. The Greens-chaired inquiry is examining multiple options to extract greater revenue from major exporters, including this proposed export tax that has garnered backing from a broad coalition of politicians, unions, and climate advocacy groups.
Alternative Proposals and Government Deliberations
Alternative proposals include a 40% cashflow levy, dubbed the "fair share levy," advocated by the Ross Garnaut and Rod Sims-backed Superpower Institute as a replacement for the existing PRRT. Meanwhile, the government has been evaluating potential changes ahead of next month's budget, having tasked Treasury with modelling both a windfall profits tax and modifications to the PRRT.
However, senior Labor sources indicate that appetite for major interventions has diminished amid the global energy crisis triggered by conflicts involving Iran. These sources have effectively ruled out implementing a 25% export tax in the upcoming budget, partly to avoid antagonising Asian trading partners upon whom Australia relies for diesel and petrol supplies.
Political Opposition and Support
Finance Minister Katy Gallagher, when questioned directly about the possibility of an export tax, stated that government policies remain unchanged, highlighting Prime Minister Anthony Albanese's recent focus on securing energy supply guarantees across Asia. Opposition Leader Angus Taylor has voiced strong opposition, claiming a 25% export tax would "close down the gas industry," placing him at odds with Liberal frontbencher Andrew Hastie.
Western Australian Labor Premier Roger Cook has also expressed opposition to a new gas export tax, arguing that while it may seem attractive to many, it would not benefit Western Australia, a position he has communicated to the prime minister.
Public Sentiment and Influencer Warnings
Supporters of increased gas taxation have warned politicians across the political spectrum that failing to address their campaign risks provoking a significant voter backlash. Konrad Benjamin, a former school teacher whose Punter's Politics venture boasts nearly one million social media followers, testified that MPs are underestimating the depth of public interest in this issue.
"A million Australians following my content online, watching someone explain gas isn't a success story. It's a symptom of a government that has stopped working for the punters who elected them," Benjamin told the hearing, emphasising the growing disconnect between policymakers and public sentiment.
Expert Testimonies and International Context
Former Treasury secretary Ken Henry, whose submission advocated for a 100% windfall profits tax, delivered a blunt message to the committee: "Just do it. In the national interest, just do it. And stop the crap that the Australian public have put up with for decades now in respect of the taxation of Australia's finite natural resources."
Australia Institute co-chief executive Richard Denniss argued that Australia must resist lobbying from countries like Japan, citing new research indicating Japan collects approximately $8 billion annually from its own tax on oil and gas imports. "If the Japanese are so worried about the cost of Australian gas and coal, they should scrap the taxes they are imposing on it," he stated, highlighting the international dimensions of the debate.
