GREENS-LED INQUIRY EXPOSES AGENDA TO SHUT DOWN AUSTRALIAN GAS

Shadow Minister for Resources and Northern Australia, Susan McDonald, says hearings this week into the Senate Select Committee on the Taxation of Gas Resources have revealed a coordinated campaign by the Greens and Independents, supported by Labor, to shut down Australia’s gas industry.

Senator McDonald said evidence presented to the committee made clear that some activist groups are not interested in fair taxation, but in eliminating the sector altogether.

“The very first witness, The Australia Institute, has previously publicly advocated for banning all new coal and gas projects,” Senator McDonald said.

“Their own representatives have compared taxing gas to tobacco, arguing fossil fuels should be taxed out of existence. It’s clear they are using tax as a Trojan horse to shut down an industry that underpins our economy.”

Senator McDonald said claims that gas is “given away tax free” were directly challenged during the hearings, including by Treasury officials.

“ATO officials even had to spend time in the hearings correcting anti-gas activist’s misuse of a quote excerpt from 2019 that falsely claims the gas industry is a ‘systemic non-payer of tax’,” she said.

Senator McDonald said the facts are clear: Australia’s gas industry contributes more than $100 billion annually to the economy, supports around 215,000 jobs across the economy and paid $21.9 billion in taxes and royalties last year.

“On top of that, the sector operates under a profits-based tax system that already delivers an effective tax rate of between 50 and 60 per cent,” she said.

Industry groups, including the Business Council of Australia and the Queensland Resources Council, warned that new export levies would damage Australia’s competitiveness, reduce investment and ultimately leave resources in the ground.

“Higher taxes won’t deliver more gas and will actually result in lower tax and royalty revenue,” she said.

“This will be disastrous for Australia’s economy, resources industry workers and the regional communities they live in.

“Labor’s broken Budget shows how desperate they are for any cash-grab options, even at a huge risk to Australia’s ongoing energy security.

“Arbitrary taxes during the Middle East conflict are not the answer, as Australia’s abundant gas stock is assisting in energy supply-for-supply exchanges from our nearest Asian trading partners who have fuel.

“Labor has waged war on gas through industrial relations policies, excessive red tape, and consistent anti-investment signalling to businesses.

“Under the Albanese Labor Government, there has been only one offshore acreage release since 2022, and that came with heavy conditions.”