ACOSS backs gas export tax as momentum builds across parliament

Australia’s peak council for community services ACOSS has joined the torrent of support including the Greens and independent members of parliament for a 25% levy on gas exports, originally proposed by the ACTU.

“We need a 25 per cent levy on gas exports, not a temporary windfall profit tax, to guarantee fair public returns now and into the future,” said ACOSS CEO Dr Cassandra Goldie.

“It would generate up to $17 billion per year to invest in energy affordability and renewables, adequate income support payments, health, housing and community services. It’s time for gas companies to pay their fair share and use the funds to help the people doing it toughest.

“We urge all parliamentarians to listen to the people of Australia and back a 25% levy on gas exports.”

It’s not surprising ACOSS are advocating for Australia to seize the opportunity for an injection of revenue from an industry awash with cash from selling Australian gas they largely get for free.

Australia is facing a budget deficit making it harder to increase funding for social services and cost of living relief.

Ordinary Australians are struggling with rising prices for essential items, there is a housing crisis and welfare payments are manifestly inadequate for the most disadvantaged Australians. Fuel prices are going through the roof, caused by the very conflict filling the coffers of multinational gas giants exporting Australia’s gas.

The ACOSS announcement  follows former deputy Opposition leader Andrew Hastie’s support for the tax and sovereign wealth fund similar to Norway’s Government Pension Fund that has amassed around $3 trillion from their oil and gas exports for the benefit of the Norwegian community.

Former Labor industry minister Ed Husic has also spoken out in support of the tax.  One Nation support imposing royalties on gas they estimate would raise $10-13 billion in revenue for Australians annually.

Currently multinational gas companies get over half the gas they export exported from Australia for free because the Australian Government doesn’t charge them royalties. Most also pay no petroleum resource rent tax, the main tax imposed on the gas industry that has been in place for almost 40 years.

Gas exporters have made around $100 billion in windfall profits due to the Ukraine conflict since 2022 and stand to make potentially even greater windfall profits during the current crisis. Under current arrangements, Australians will miss out.

If a 25% gas tax had been in place since 2022, the Australian Government would have raised around $63 billion, enough for free universal childcare or free tertiary education.

The support of the Greens, Independents, and One Nation for raising taxes on the gas industry reflects the view of the overwhelming majority of Australians, across the political spectrum, who want a gas export tax to fund improvements in services like health and aged care.

With the Greens declaring they stand ready to help push the reform through Parliament, and the numbers in the Senate to do so, the Albanese Government could pass this legislation within weeks.