Prime Minister Anthony Albanese has ruled out a new tax on existing gas export contracts, but the government has asked Treasury to model the effects of a 25% levy. According to major media reports, Australia collects more tax from beer than from gas exports, a disparity highlighted in a viral video of Senator David Pocock that received almost 10 million views on Instagram. 'How do we live in a country, one of the biggest gas exporters in the world, and we're getting more tax from beer?' Pocock asked at a press conference.
The government collected about $1.5 billion in revenue from the Petroleum Resource Rent Tax (PRRT) in 2025, according to multiple reports. In contrast, the Australian Energy Producers (AEP) claims the oil and gas industry paid $21.9 billion in taxes and state royalties in 2024-25. Prime Minister Albanese argued that gas corporations paid $22 billion in tax last year, a figure that may conflate taxes with royalties, according to reported disputes. Shell paid $109 million in PRRT in 2025, but did not pay any in the previous decade, Shell representatives said. Shell tax boss Coralie Trotter noted that Shell paid $2.9 billion in tax on $6.2 billion in after-tax profits in 2024.
International comparisons show that Japan collects about $1.8 billion every year on taxes for Australian gas imports, according to The Australia Institute. Australia supplies Japan with roughly 40% of its LNG, multiple reports indicate. Australia's sovereign wealth fund had A$267bn as of December 2025, less than 10% of Norway's for a population five times as big, according to major media.
The Greens and One Nation both support tougher taxation of gas exports but disagree on the method, according to major media. One Nation proposes reserving 15% of Australian-produced gas for local homes and businesses, Senator Sean Bell said. Former Treasury secretary Dr Ken Henry proposed a mining tax 16 years ago that was defeated after a campaign by the mining industry, he told major media. 'Just do it and stop the crap,' Henry said at a press conference.
Inflation jumped to 4.6% in the year to March, from 3.7% the month before, according to latest CPI figures. The tobacco excise is forecast to bring in $5.45 billion in 2025-26, spirits excise $3.4 billion, and beer excise $2.7 billion, according to the mid-year economic and financial outlook. A Guardian Essential poll found that 68% of Australians want the fuel excise cut to be extended, and 46% support reducing negative gearing and capital gains tax breaks for property investors.
Shell invested US$60 billion into developing gas projects, Shell country chair Cecile Wake said. However, the impact of a 25% gas export tax on investment is disputed: the Australian Energy Producers claims it would stop investment in new gas supply, leading to gas shortfalls and higher prices, while others question whether the tax would harm energy security or merely reduce corporate profits. Resources Minister Madeleine King said the tax would discourage investment in the new supply needed for the transition to net zero.