Reports that the Federal Government is considering imposing even higher taxes on Australia’s gas industry would leave Australia more exposed to future energy shocks, Australian Energy Producers Chief Executive Samantha McCulloch said.
“This would be the worst possible time for Australia’s economy and energy security to impose a new, retrospective tax on an essential energy sector,” Ms McCulloch said.
“Imposing higher taxes on Australian gas producers would stop investment in new gas supply, leading to gas shortfalls, higher energy prices, and the closure of Australian industries that rely on reliable and affordable gas.”
“The current surging petrol and diesel prices in Australia underscore just how important it is that we ensure Australia remains able to meet its own gas needs through secure domestic supply.
“While international gas prices have surged, Australian gas prices remain relatively low, and the market is well-supplied. We should not take this for granted.”
Ms McCulloch said the Middle East conflict also highlighted Australia’s co-dependency with our regional neighbours for energy and food security.
“Australia’s role in regional and global energy security has never been more important. Australia’s reliable gas supply to the region underpins the energy security of key trade partners, and in turn Australia depends on imported fuels and other essential imports from the region,” she said.
Ms McCulloch called on the Government to rule out any new taxes on gas producers.
“The Australian gas industry is already Australia’s second largest corporate taxpayer, contributing $21.9 billion in taxes and royalties in 2024–25 alone,” she said.
“As we navigate the current global energy crisis, the Government should be working with the gas industry on how to ensure Australians continue to have reliable and affordable gas supply, and remain resilient to future shocks.
“Australia is already struggling to compete for investment in gas supply projects as a result of regulatory uncertainty, high taxes, approval delays and unchecked activism. Further retrospective tax changes would send a damaging message that Australia is closed for business.”
