Gas giants poised for fierce fight against 25% export levy

A bitter battle is brewing in Canberra as gas exporters prepare to lobby fiercely against a proposed 25% levy on windfall profits amid the global energy crisis.

Industry giants unite against tax plans

The Australian Energy Producers, representing the country's largest gas companies, has warned that such a tax would 'stop investment in new gas supply, leading to gas shortfalls, higher energy prices, and the closure of Australian industries that rely on reliable and affordable gas.'

Despite the threat of a backlash, Energy Minister Chris Bowen refused to rule out the tax when questioned, stating that the government is considering ways to 'maximise the efficient collection of tax in Australia.'

With global gas prices soaring following attacks on key fields in the Gulf, Australia is expected to reap significant profits from its own gas exports. However, advocates argue that the government should redirect these 'wartime profits' to struggling households.

Senator David Pocock, who has been a vocal proponent of the tax, claims the government is 'caving to the pressure' and that Australians are already paying more on petrol while beer excise brings in billions for the government.

The government is currently modeling the impact of a 25% export levy, alongside potential changes to the petroleum resource rent tax (PRRT) and corporate income tax. If implemented, the levy could raise an estimated $17 billion annually, with some of that revenue earmarked for cost-of-living relief.

However, opposition from the gas industry is expected to be fierce, with the Chamber of Minerals and Energy WA warning that the tax could 'undermine Australia's reputation as a stable, reliable place to invest' and 'damage the living standards of future generations.'