The Coalition’s plan to impose a new tax on gas exports aims to redirect gas production from overseas markets to Australian households and industries. According to Dr. Richard Denniss, Executive Director of The Australia Institute, this proposal could raise billions of dollars.
Dr. Denniss pointed out that while Australia is one of the world’s largest exporters of Liquefied Natural Gas (LNG), the mostly foreign-owned gas industry has claimed there is a gas shortage in the country.
“Peter Dutton’s rejection of that false claim, and his proposal to tax gas exports to encourage more local supply, marks a significant shift in Australian energy policy,” Dr. Denniss said.
Research from The Australia Institute reveals that over 80% of gas produced in Australia is exported, with more than half of these exports given away royalty-free to gas companies.
“Taxing gas exports is a simple way to ensure that more of Australia’s gas stays within the country, making it more affordable for local consumers,” Dr. Denniss added.
He also suggested that introducing a cap on gas exports would further benefit Australians by reducing living costs and lowering emissions from gas consumption.
“This presents a huge opportunity for the Labor Party to build on the Coalition’s policy,” Dr. Denniss continued. “For years, major political parties in Australia have hesitated to prioritize Australian taxpayers over the profits of the fossil fuel industry. But with Peter Dutton taking the first step, there is now an unprecedented chance for the new parliament to act.”
Dr. Denniss highlighted that countries like Norway tax fossil fuel companies and use the revenue to fund public services, such as free university education. In contrast, he said, Australia subsidizes fossil fuel companies while making higher education increasingly expensive for young people.
“It’s time for Australian leaders to put the needs of their people ahead of the interests of fossil fuel polluters,” he concluded.
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