Overview
The case for reforming Australia's gas taxation arrangements was very strong prior to the conflict in Iran. Instability in global fuel supplies and substantially elevated prices have only strengthened the need for Australia to access benefits from the sale of gas resources owned by the Australian people.
Australia’s average return of around 18 per cent of gas sector profits is well below the global norm of between 75 and 90 per cent. Australia has forgone around $80 billion in government revenue since Russia invaded Ukraine and has missed out on more than $2 billion since the start of the Iran war.
Australia has forgone around $80 billion in government revenue since Russia invaded Ukraine and has missed out on more than $2 billion since the start of the Iran war.
Replacing the PRRT with a Fair Share Levy (FSL) on the profits of gas producers would deliver immediate and lasting benefits for Australians: a much stronger federal budget, higher productivity and enhanced welfare.
An FSL, unlike other forms of gas taxation, would not distort the amount of gas exported so would preserve Australia’s regional trade relationships in a delicate geopolitical context.
Research commissioned by TSI shows 87 per cent of Australians support a fair share of gas profits for Australians. Now is the time to introduce the FSL as otherwise Australians will miss out on a fair share of the current windfall profits being made.
