The recent Senate inquiry into the taxation of gas resources attracted considerable interest in the leadup to May’s federal budget. A strong case had been made for improving the tax revenue the government receives from the export of gas - a non-renewable resource owned by Australian citizens.
The independent NGO, the Climate Council, is among the critics of the current taxation system which lets the gas companies off very lightly. It claims that Australia is missing out on the level of revenue that many other nations derive from the export of their gas resources. For example, Qatar and Australia export similar amounts of gas each year with Qatar collecting five times as much government revenue from its gas exports.
Tax revenue on gas exports is derived from royalties for onshore gas extraction or from a Petroleum Resource Rent Tax (PRRT) for gas sourced from Commonwealth waters. While there are problems with royalties charged for onshore gas, the situation is even worse with the PRRT. The NGO the Australia Institute claims it has been an abject failure because while LNG exports surged by $47.7 billion from 2014 to 2025, PRRT revenue was $450 million lower in 2024-25 than in 2014-15.
The Australia Institute, along with the ACTU, the Australian Council of Social Services, the Commonwealth Bank CEO, the Australian Greens and several independent cross-benchers support the introduction of a 25% tax on the value of gas exports. It is estimated that this tax could raise up to $17 billion per year.
Unsurprisingly the gas industry is mounting a well-financed campaign against any changes to taxation which curtail their enormous profits.
Co-CEO of the Australia Institute, Dr Richard Denniss said, “If this parliament chooses to leave things largely unchanged, then it is choosing to put foreign-owned gas companies ahead of deficit repair and properly funding things like the NDIS, hospitals, schools and roads.”
“A 25% gas export tax would transform the Commonwealth budget, push down domestic gas and electricity prices and show Australians that their politicians are willing to put them first.”
Leonie Blain
The Federal Government ruled out any changes to taxes on gas exports prior to the handing down of the Federal Budget on May 13.
Published in the Voices for the Earth column in The Clarence Valley Independent , 1 May, 2026. Updated for publication on this blog.
