Albanese rules out 25% gas export tax in federal budget
Updated
Updated · BBC.com · May 6
Albanese rules out 25% gas export tax in federal budget
10 articles · Updated · BBC.com · May 6
The decision follows a viral Senate exchange showing Australia raises more tax from beer than gas exports, with polls indicating 57% support and 12% opposition.
Critics say the PRRT will raise about A$1.5bn in 2025-26 versus A$2.7bn from beer tax, while a 25% levy could raise A$17bn a year.
Albanese says changing policy during a global fuel crisis could threaten contracts, investment and energy security, but economists and campaigners argue pressure will keep growing.
Can Australia afford to reject a A$17 billion gas tax windfall while its citizens face a cost-of-living crisis?
If Qatar nets six times more revenue from similar gas exports, what is stopping Australia from claiming its missing billions?
Australia’s Gas Tax Debate: 25% Export Levy Rejected Despite PRRT Failures and Political Pressure
Overview
In May 2026, Prime Minister Albanese rejected a proposed 25% tax on existing LNG export contracts, citing risks to Australia's international standing and key Asian energy partnerships. This decision sparked political and public criticism, fueled by the fact that the current Petroleum Resource Rent Tax (PRRT) generates only modest revenue due to structural flaws allowing delayed tax payments. Industry warnings about investment risks and diplomatic concerns influenced the rejection, while economists argued the tax could raise billions without harming trade. The rejection intensified divisions within the Labor Party and increased public pressure ahead of a critical July 2026 party conference, where future gas tax reforms will be debated.