When fuel prices rise, who picks up the pieces?
Most Australians will notice higher fuel prices at the petrol station. Frontline community services will notice them in the growing number of people seeking help.
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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Most Australians will notice higher fuel prices at the petrol station. Frontline community services will notice them in the growing number of people seeking help.
Banning gambling ads is a great example of something we don't see often enough: stopping harm before it happens, rather than spending to patch up the damage afterwards. As a result, we spend an enormous amount of time and public money focusing on fixing problems after the fact, but far less time asking: why do we permit, or even subsidise, the activities causing these problems in the first place?
