Anthony Albanese has defended the government's decision not to increase the tax on Australia's gas exports, dismissing recent calls from pressure groups for a 25 per cent rate as a "slogan".
The federal budget did not contain any increase to gas export taxes — despite a sustained recent campaign to hike taxes on gas exports and pressure to wind back the fuel tax credit scheme.
The government ruled out gas tax changes ahead of the budget, with LNG exports reportedly used as leverage in negotiations with trading partners to shore up liquid fuel supplies.
Australian unions have called for a 25 per cent tax on gas exports saying it would have raised $17.1 billion in the 2023-24 financial year.
Labor will, however, enforce an east coast gas reserve to set aside product for the domestic market.
Albanese was asked by SBS News whether it was likely Labor would revisit the proposal if the war ends and the pressure on fuel supplies subsides. He suggested such calls did not have substance.
"That's a slogan, with respect," he replied.
"What is it that you refer to? Because no one seems to know."
Albanese said Australia had the petroleum resources rent tax — the mechanism for taxing profits earned on fuel extraction.
"People speak as if there isn't one. There's company tax. There's the resources tax that goes to state as well," he said.
"The PRRT was designed to ramp up over time as the cost of investment to create these projects is paid down."
The prime minister said the government was prioritising the immediate supply issues of fuel.
"The issue that we are concerned about at the moment, of course ... is supply of fuel into our economy."
Income from the petroleum resource rent tax has been revised down by $100 million to $1.4 billion for the current financial year, compared to forecasts in December's mid-year budget update.
This is despite oil and LNG prices surging since the start of the Middle East conflict.
PRRT revenue is expected to climb to $1.9 billion in 2026-27, primarily due to the higher oil price, before falling each subsequent year until it hits $1.25 billion in 2029-30 as the oil price stabilises.
By contrast, the beer excise is forecast to bring in $3.1 billion in 2029-30.
A social media post by independent Senator David Pocock highlighting the disparity between the two revenue streams led to a groundswell of support ahead of the budget for changes to the way gas exports are taxed.
Despite a Senate inquiry finding the PRRT was ineffective, Labor decided not to touch the tax, citing concerns that it could anger key fuel suppliers who rely on Australian gas.
Treasurer Jim Chalmers has also pointed to changes made during Labor's previous term of government that were designed to make gas companies pay the tax earlier in the life of projects.
— With additional reporting by the Australian Associated Press.
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