Gas giants will lobby against any federal government moves to introduce a 25% export levy on windfall profits, as crossbenchers pressure the prime minister to redirect billions of dollars in \u201cwartime profits\u201d to Australians struggling amid the global energy crisis.<\/p>\n
It comes after the prime minister\u2019s department asked Treasury to model the effects of placing a flat 25% tax on gas exports, the ABC reported on Friday<\/a>, along with any further changes to the petroleum resource rent tax<\/a> (PRRT) and corporate income tax.<\/p>\n The issue sets up a fierce political fight as parliament returns next week with crossbench MPs, including David Pocock, and advocacy groups demanding the government capture billions of dollars in potential revenue by imposing taxes on exported Australian gas as global prices rise after Israel\u2019s and Iran\u2019s attacks on gasfields<\/a> in the Gulf.<\/p>\n Pocock has been pressuring the government in recent months to offset struggling households<\/a> by collecting more tax from fuel exports, in a move Anthony Albanese suggested was because he was seeking<\/a> \u201cto promote grievance\u201d.<\/p>\n The ACT senator said it appeared the government \u201cmight finally be caving to the pressure myself, others on the crossbench and especially Australians in communities across the country have been putting on them to tax gas companies making wartime profits\u201d.<\/p>\n \u201cAustralians are already paying more on petrol and we shouldn\u2019t be paying more on beer excise than the government gets for petroleum resource rent tax,\u201d he said on Friday.<\/p>\n The tobacco excise is forecast to bring in $5.45bn across over 2025-26 with the spirits and beer excises expected to pour $3.4bn and $2.7bn respectively into government coffers, according to the mid-year economic and financial outlook. In that same period, the PRRT is expected to raise $1.5bn.<\/p>\n But the gas industry\u2019s peak representative body, Australian Energy<\/a> Producers, said a 25% levy against its exports would come at the \u201cworst possible time for Australia\u2019s economy and energy security\u201d.<\/p>\n \u201cImposing higher taxes on Australian gas producers would stop investment in new gas supply, leading to gas shortfalls, higher energy prices, and the closure of Australian industries that rely on reliable and affordable gas,\u201d AEP\u2019s chief executive officer Samantha McCulloch said.<\/p>\n The federal government has so far resisted any push for steeper taxes against the industry, with the resources minister, Madeleine King, telling parliament earlier this month it \u201cwould discourage investment in the new supply we need to back up our transition to net zero\u201d.<\/p>\n \u201cWe need gas as a firming capacity for renewables, whether they be solar or wind,\u201d King said.<\/p>\n But on Friday the energy minister, Chris Bowen, did not rule out the consideration when asked.<\/p>\n \u201cThe treasurer\u2019s made clear, the tax reform is on the government\u2019s agenda, and is considering the way to maximise the efficient collection of tax in Australia,\u201d he said on ABC radio.<\/p>\n The escalation in attacks since the Israel-US war against Iran began in February has sent shockwaves through the global energy market.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n On Wednesday night, Israel struck Iranian facilities used to process gas from the nearby South Pars gasfield<\/a>, which it shares with Qatar.<\/p>\n