Preliminary analysis shows that Australian taxpayers are set to miss out on $16 billion in gas export tax revenue over the next 12 months. While the Budget includes a $100 million upward revision in Petroleum Resource Rent Tax (PRRT) revenue for 2026-27, on the back of $63.9 billion in gas exports, it is microscopic compared to the $16 billion that could be raised with a 25% tax on gas exports.
Tue 12 May 2026 21.00 AEST
Photo: AAP Image/Darren England
A quick dive into the Budget papers, and some preliminary analysis, shows that Australian taxpayers are set to miss out on $16 billion in gas export tax revenue over the next 12 months.
While the Budget includes a $100 million upward revision in Petroleum Resource Rent Tax (PRRT) revenue for 2026-27, on the back of $63.9 billion in gas exports, it is microscopic compared to the $16 billion that could be raised with a 25% tax on gas exports.
Safe to say, the upward revision in PRRT revenue is difficult to spot compared to the scale of gas exports, and the significant revenue a gas export tax could generate.
What is not hard to see is that an extra $14 billion in government revenue could have done a lot to ease the cost-of-living crisis, lower household energy bills, reduce inflation, and ensure Australians receive a fair return for their natural gas resources.
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Direct funding for environmental protection in this year’s budget is just 0.3% of total budget expenses. Alarmingly, it then falls off dramatically over the forward estimates. Such low levels of direct investment in the environment used to be a feature of Coalition rather than Labor governments.
It's true that some taxes grow and while others fade away. Here's a look at some of the 'smaller taxes' by how much they are expected to grow over the next 4 years. What's striking is that while Australia is in the middle of a gas price boom, the PRRT is still expected to fall by a third.
