Overview
- Labor is considering new taxes on LNG exporters and has sent options to Cabinet after the Treasurer said any change needs formal approval.
- The Australia Institute backs a 25% levy on export revenue and says it could raise about A$17 billion a year, with new modelling estimating roughly A$350 million a week and A$68 billion if applied since July 2022.
- Energy producers warn higher or export‑specific taxes would curb investment, squeeze smaller operators, raise local prices, and strain ties with key Asian buyers, with Shell Australia calling a 25% export tax a negative signal.
- Public pressure is growing as more than 100 artists, organised by Green Music Australia, urge an ongoing 25% export tax to fund cost‑of‑living relief and climate and arts programs, and polling from the institute shows 61% support.
- Critics say the existing Petroleum Resource Rent Tax lets companies use generous interest uplifts and other deductions that blunt collections, leaving Australia with A$10.6 billion in 2023 versus Qatar’s A$56 billion despite similar LNG export volumes, a gap widened by recent Middle East‑driven price spikes that lifted Woodside and Santos shares about 26% and 20%.