Taxation: Gas Industry

Ryan argued that the current resource tax system is a policy choice that fails to capture fair returns for Australians during global energy shocks. Ryan proposed expanding Queensland's gas royalty scheme nationally or implementing a fair share levy and a polluter pays levy as suggested by the Superpower Institute. Ryan stated these measures could raise an average of $35 billion annually through to 2050, which could fund essential services and improve energy security.

Mascarenhas defended the government's tax policy, noting that households are receiving tax cuts while ensuring offshore gas companies pay their fair share through recent PRRT reforms. Mascarenhas highlighted the social contract of the resource sector, including fair wages and safety, and emphasised the role of gas in decarbonising the grid alongside renewables. Mascarenhas also mentioned measures to support households with fuel costs, such as the fuel tax offset and changes to fuel standards to increase supply.

Boele argued that Australia should exercise sovereign bravery by taxing gas exports, countering claims that higher taxes would deter investment. Boele noted that Australia captures a significantly lower share of fossil fuel profits compared to other major exporting nations like Norway and Qatar. Boele highlighted that Japan profits from onselling Australian gas, suggesting that a tax would either raise revenue or keep more gas onshore for domestic use.

Chesters acknowledged the need for fair returns but warned that a 25 per cent export tax is a blunt instrument with unknown impacts on domestic gas prices and market stability. Chesters cited the gas reservation policy on the east coast as a methodical approach to ensuring domestic supply for the five million homes still connected to gas. Chesters highlighted the difficulties faced by regional Victorian communities previously promised gas connections that were never delivered, arguing against abrupt policy changes.

Watson-Brown stated that overwhelming public support exists for a 25 per cent gas export tax, which would raise revenue for essential services and incentivise domestic supply. Watson-Brown argued that the current system allows gas companies to make record profits while paying less tax than many individual Australians, including nurses and teachers. Watson-Brown claimed that both major parties are influenced by corporate donations and fail to act in the public interest regarding gas taxation.

Urquhart defended the government's PRRT reforms, stating they ensure offshore gas companies pay more tax sooner while providing policy certainty for investment. Urquhart argued that imposing new costs could undermine investment needed for domestic gas supply and the transition to net zero emissions. Urquhart emphasised the role of gas as a bridge fuel and the importance of maintaining reliable international trading partnerships to support energy security.

Chaney identified two fundamental problems with the current tax system: gas exporters do not pay royalties for the resource itself, and Australians do not capture fair shares of windfall profits during price spikes. Chaney argued that the PRRT has failed comprehensively for gas projects due to generous deductions, resulting in low revenue compared to beer excise. Chaney suggested reform options such as fixing the PRRT, introducing a windfall tax, or a two-way cash-flow tax, while cautioning against undermining investment certainty.

Cook argued for a balanced approach that ensures fair returns while shielding households from global instability and maintaining investment certainty. Cook highlighted the government's 2023 PRRT reforms, which capped deductions at 90 per cent to prevent companies from reducing taxable income to zero. Cook also detailed the national fuel security plan and the importance of keeping Australia moving during the current global energy crisis.

Steggall stated that Australians lose approximately $2 million per hour in revenue due to inadequate taxation of gas exports, citing estimates of $63.8 billion forgone since July 2022. Steggall argued that the PRRT is a failed policy with patchy returns and that the government has ignored Treasury recommendations for tighter deduction caps. Steggall called for a meaningful tax on gas exports to fund cost-of-living relief and the clean industry transition, noting strong public consensus for reform.