Australia debates 25% gas export tax amid PRRT scrutiny and industry pushback
Consensus Summary
Australia’s gas industry faces mounting pressure to pay higher taxes amid soaring export revenues, with a Greens-led Senate inquiry examining a proposed 25% export levy that could raise $17bn annually. Industry executives like Shell’s Cecile Wake and Santos executives testified that new taxes would deter $400bn in past investments and harm Australia’s trading relationships with Asia, while independent senator David Pocock and think tanks like the Australia Institute argue the current Petroleum Resource Rent Tax (PRRT) is a ‘national disgrace’ for raising only $1.5bn in 2024–25 despite $65bn in LNG exports. Prime Minister Anthony Albanese ruled out the 25% levy in the May 2026 budget, citing global fuel security concerns, though Treasury had previously modelled windfall tax options. The debate hinges on whether Australia’s tax system adequately captures windfall profits—with Santos exporting $47bn in gas while paying zero corporate tax—and whether reforms would risk investment or simply redirect profits to domestic consumers. Polling shows strong public support for higher taxes, but industry-backed reports and state premiers like Roger Cook of WA oppose changes, framing them as economically damaging.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- A Senate inquiry into gas taxation heard evidence from April 22–24, 2026, with Greens senator David Pocock and industry executives like Shell’s Cecile Wake testifying.
- The proposed 25% gas export levy could raise $17bn annually, per Australia Institute modelling, and replace or supplement the Petroleum Resource Rent Tax (PRRT).
- Santos exported $47bn worth of gas since 2018 but paid zero corporate tax in 2023–24, according to CICTAR and ATO data.
- Shell Australia paid $109m in PRRT in 2024–25 but zero in the prior decade, per company disclosures to the inquiry.
- The gas industry paid $21.9bn in taxes and royalties in 2024–25, per Australian Energy Producers (AEP), including $13.5bn in corporate tax and $1.3bn in PRRT.
- Prime Minister Anthony Albanese ruled out a 25% export tax on existing contracts in the May 12, 2026 budget, citing global fuel security concerns.
- Japan collects ~$8bn/year taxing Australian gas imports, while Australia’s PRRT raised only $1.5bn in 2024–25, per Australia Institute and CICTAR.
- The inquiry heard that Chevron’s Gorgon LNG project (costing ~$70bn) only began paying PRRT in 2025 after years of deductions.
- Seven major gas producers contributed ~$7m total to the Australian Energy Producers’ anti-tax advertising campaign, including Shell’s $1m.
- Western Australian Premier Roger Cook opposed a gas export tax, arguing it would harm WA’s economy.
Points of Difference
Details reported by only one source:
- CICTAR’s Jason Ward called the PRRT’s failure to tax offshore gas a ‘national disgrace’ and ‘international embarrassment’ during the inquiry.
- Origin Energy’s Catherine Feng stated the Australia Pacific LNG project only began paying corporate tax in 2024 after a decade of deductions.
- Shell’s Cecile Wake described the 25% export levy as ‘spectacularly ill-advised’ and warned it would ‘render many new developments uninvestable’.
- Queensland Resources Council’s Janette Hewson argued a federal levy would create ‘punitive double taxation’ with state royalties.
- Treasury modelled windfall tax options and PRRT reforms in March 2026, but no plan was brought to cabinet by budget time.
- Former Treasury Secretary Ken Henry told the inquiry to ‘just do it’ on gas taxes, calling Australia’s system ‘crap’ for decades.
- Polling by Redbridge/Australia Institute found 70% of Greens voters and 67% of One Nation voters supported a 25% gas export tax.
- The UK’s 2022 windfall tax led to a 14.1bn–2.3bn GBP annual investment drop, per Shell’s Cecile Wake.
- Wood Mackenzie’s report (commissioned by AEP) assumed PRRT would raise 38% of income, but in reality it raised only 1.5bn in 2024–25.
- Independent senator David Pocock accused Albanese of ‘caving to gas companies’ after the budget decision.
- Greens leader Larissa Waters called the budget choice ‘deliver for the greedy gas corporations, or deliver for the people’.
- Former Shell executive Idris Jala argued Australia should tax windfall profits despite Shell’s opposition.
- The Superpower Institute proposed a 40% ‘fair share levy’ to replace the PRRT, backed by Ross Garnaut and Rod Sims.
- Albanese linked gas exports to Australia’s fuel security in a speech to the Chamber of Minerals and Energy WA on April 29.
Where the reporting differs
Details that conflict, or appear in only some outlets:
- The Guardian and ABC report Albanese ruled out a 25% export tax in the May 2026 budget, but Newscomau’s April 22 article suggests the inquiry was still ongoing with no final decision.
- Australian Energy Producers claims the industry paid $21.9bn in taxes and royalties in 2024–25, while CICTAR and the Australia Institute argue this figure includes state royalties and obscures tax avoidance.
- Shell says it paid $12bn in taxes over the past decade, but CICTAR and Pocock highlight that half of the industry’s $21.9bn tax figure comes from just two companies (Chevron and Woodside).
- The industry argues a 25% export tax would make Australia ‘uninvestable,’ but economist Kristen Sobeck says a super profits tax on windfalls would have ‘little impact on investment.’
- Wood Mackenzie’s report (cited by ABC) assumes PRRT works perfectly, raising 38% of income, but in reality it raised only 1.5bn in 2024–25 despite $65bn in LNG exports.
Source Articles
Energy giants push back on tax calls
A fierce Senate showdown has exposed the deep divide over how much Australia earns from its booming gas exports.
‘Billions of dollars’: Huge hint on windfall tax
The minister in charge of Australia’s resources has hinted the government will reject calls to slap a 25 per cent windfall tax on Australia’s gas giants.
Albanese poised to kill off move to increase taxes on gas giants
The government will not increase taxes on gas giants in next month's budget, echoing the industry's argument that exporters are already paying tens of billions of dollars in taxes each year.
Does the gas industry pay its fair share of tax?
Advocates are proposing a flat 25 per cent tax on gas exports, but representatives say the industry is being unfairly targeted.
Anthony Albanese accused of ‘caving to gas companies’ as Labor set to reject new export tax
David Pocock says prime minister – who is trying to shore up fuel supplies – is parroting industry talking points Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Labor is poised to reject a growing push for a new 25% tax on gas exports in next month’s budget, prompting David Pocock to accuse the government of “caving in” to the gas industry. It’s understood the government has elected not to pursue a new tax on gas exports in the
Labor under internal pressure on gas tax as influencer says government ‘stopped working for the punters’
Party’s environment action network tells parliamentary inquiry into gas export tax to consider ‘very substantial’ levy on windfall profits Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast The Albanese government is facing internal pressure to raise taxes on gas companies as a prominent social media influencer warns Labor not to underestimate the scale of public outrage about the existing regime. Labor’s environment action network
Shell boss stumped by Pocock’s question
A gas industry boss warned against “punitive” new taxes while defending one company that exported $47 billion worth of Australian gas without paying corporate tax.
Why the gas tax momentum is building to stop selling Australia short
Gas giants are breathing a sigh of relief after Prime Minister Anthony Albanese ruled out a 25 per cent tax on exports in next month's budget. But for how long will the federal government resist something that one leading expert says is in our "national interest"?
'Spectacularly ill-advised': Energy giants condemn gas tax
An inquiry into the taxation of gas resources has heard from proponents for a tax, who believe Australians are being robbed of their fair share of wealth from the nation's natural resources, and opponents, who argue touching tax settings would spook investors.
Anthony Albanese rules out gas export tax on existing contracts and criticises ‘populist’ campaign
Prime minister says the middle of a global fuel crisis is ‘the worst possible time to jeopardise’ Australia’s partnerships with Asian trading partners Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast The prime minister, Anthony Albanese, has confirmed next month’s federal budget will not include a new tax on existing gas export contracts as he criticised the “populist” campaign calling for a levy on producers. As reported last we
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