Albanese rejects export taxes on contracted gas
Sydney (29 April)
Prime Minister Anthony Albanese has indicated that the Australian Government will not introduce export taxes on gas sold under existing contracts for diplomatic and strategic reasons.
“I can confirm that the [Government’s upcoming] Budget will not undermine existing contracts on gas exports,” Prime Minister Albanese said at a speech to the Chamber of Minerals and Energy of Western Australia (CME) on 29 April.
“The quality and reliability of … Australian gas has been critically important to the assurances we have received [from foreign governments] for future supplies of petrol, diesel and fertiliser,” the Prime Minister added.
Prime Minister Albanese’s comments do not contradict Labor MP and former Industry Minister Ed Husic’s recent support for a gas export tax.
“I do support the idea of a gas tax on uncontracted exports that then gets extended as future contracts are being negotiated,” backbench Labor MP and former Industry Minister Ed Husic told the ABC on 22 April.
Australian gas exports have supported bilateral fuel deals over recent months. On 17 April, Singapore and Australia negotiated a legally binding protocol on essential supplies, including both natural gas and refined fuel.
Australian producers account for 32% of Singapore’s LNG imports, while Singaporean refiners account for 26% of Australia’s refined fuel imports, Prime Minister Albanese said on 10 April.
Albanese has also pledged to cooperate with Malaysian Prime Minister Anwar Ibrahim and the Sultan of Brunei, Haji Hassanal Bolkiah, on supply issues related to essential goods, including refined petroleum, fertilisers, and natural gas.
Albanese’s gas comments come alongside a push for gas export taxes from multiple Australian politicians, including Independent Senator David Pocock and the Australian Greens.
Australian producers currently pay a 40% federal tax on profits generated from offshore gas, through the Petroleum Resources Rent Tax (PRRT), but can claim development cost deductions on 90% of PRRT obligations. Prior to 2023, producers could claim deductions on all PRRT obligations, limiting payments.
Chevron made its first PRRT payments on sales linked to its Gorgon and Wheatstone natural gas projects in 2025, according to the company. It opened the two projects in 2016 and 2017, respectively. Chevron and its partners invested A$80 billion to develop Gorgon and Wheatstone, its Australian General Manager of Finance, Maggie McCourt, said on 24 April.
Australia replaced gas excises and royalties with the PRRT to support investors in 1988, Treasury said in a 2016 review of the scheme.
“While [excises and royalties] are relatively easy to collect and difficult to avoid, they were seen to interfere with investors’ search for the best returns as they are based on volume or value of production, rather than on the profitability of petroleum projects,” Treasury said.
By Avinash Govind