Pressure is growing inside Labor to properly tax gas exports. Here's what a 25% tax could pay for
News Source
β’Wed, 22 Jul 2026 15:00:20 GMT
π° What Happened
Pressure is building inside the Labor Party to tax gas exports more heavily. At the national conference, the party will vote on a platform change that promises a 'fairer return' from Australia's natural resources. This is widely seen as a step toward the ACTU's proposal of a 25% tax on gas exports. The current language is vague but signals a shift in policy.
Australia is now the second biggest exporter of liquefied natural gas in the world, behind only the US. Twenty-five years ago, LNG exports were just 2% of all goods exported. Now they make up about 12%. Despite this boom, the tax revenue from gas has not grown nearly as fast. Critics say the companies are not paying their fair share.
π The Backstory
Australia's gas export industry has grown massively since the early 2000s. Huge LNG plants were built in Queensland and Western Australia. The projects were given generous tax breaks to encourage investment. But as profits soared, the tax rules stayed the same. Many economists argue that Australians are not getting a fair return on their own resources.
The ACTU has proposed a 25% tax on gas exports, similar to what Norway and other countries charge. The revenue could fund hospitals, schools, and renewable energy projects. The gas industry argues that higher taxes would scare away investment and hurt jobs. The debate has been going on for years, but this conference is the first time Labor has formally committed to reviewing the issue.
π― Why It Matters
A gas tax could mean more money for schools and hospitals. But it could also mean higher energy bills. Either way, it affects your wallet and the services your community gets.
Pressure is building inside the Labor Party to tax gas exports more heavily. At the national conference, the party will vote on a platform change that promises a 'fairer return' from Australia's natural resources. This is widely seen as a step toward the ACTU's proposal of a 25% tax on gas exports. The current language is vague but signals a shift in policy.
Australia is now the second biggest exporter of liquefied natural gas in the world, behind only the US. Twenty-five years ago, LNG exports were just 2% of all goods exported. Now they make up about 12%. Despite this boom, the tax revenue from gas has not grown nearly as fast. Critics say the companies are not paying their fair share.
Australia's gas export industry has grown massively since the early 2000s. Huge LNG plants were built in Queensland and Western Australia. The projects were given generous tax breaks to encourage investment. But as profits soared, the tax rules stayed the same. Many economists argue that Australians are not getting a fair return on their own resources.
The ACTU has proposed a 25% tax on gas exports, similar to what Norway and other countries charge. The revenue could fund hospitals, schools, and renewable energy projects. The gas industry argues that higher taxes would scare away investment and hurt jobs. The debate has been going on for years, but this conference is the first time Labor has formally committed to reviewing the issue.
A gas tax could mean more money for schools and hospitals. But it could also mean higher energy bills. Either way, it affects your wallet and the services your community gets.