In Brief
- Gas giants faced a Senate hearing in Perth on Friday, arguing new taxation on gas exports could cost jobs.
- As calls for a 25 per cent tax on exports grow, both the prime minister and resources minister have poured cold water on the idea.
The federal government has ruled out imposing a new tax on gas exports in the federal budget next month, amid calls from a Greens-led Senate inquiry and on social media.
Resources Minister Madeleine King said on Friday there was "no change" in the government's position, a day after Prime Minister Anthony Albanese indicated he was cold on the idea of a 25 per cent tax on all exports.
"They pay around about $22 billion ... you need to acknowledge the tens of billions of dollars of investment that occurs in order to have that gas extracted," Albanese told the ABC's Afternoon Briefing program.
"Without that investment that's come from North America, that's come from Japan ... we wouldn't be having a debate because there wouldn't have been that extraction."
King said taxes on the resource were already in place, such as for offshore gas reserves.
"We've got to remember what those billions of dollars of investment has delivered for the Australian people," she said.
"One of the things [we get out of it] is a domestic gas supply. We're trying to make that fairer, so that there is more gas available in times of need."
King's comments were made before resources giants Woodside, Chevron, Santos, and INPEX faced a Greens-led Senate hearing on the taxation of gas resources on Friday. The companies have argued that any new taxation on gas could lead to job cuts.
Opposition resources spokeswoman Susan McDonald called for opening up gas reserves to bring extra revenue to the Australian economy.
"Once the gas starts flowing, the tax take starts to shoot upwards," she said.
"We will see a much bigger return than what's been proposed by this 25 per cent tax, particularly over the long term, because we won't undermine investability in this country."
Independent MP Allegra Spender said a 25 per cent tax on gas exports would help fix issues in the sector.
"The gas industry is a very profitable industry and pays income tax. And every company in Australia, frankly, should pay income tax on its profits and should pay the proper rate," she told ABC radio.
"The gas companies are different because they also sell an Australian resource, which they extract, which we can't get back once it is sold."
Fuel companies paying to 'counterbalance' the narrative
Shell Australia country chair Cecile Wake told the Senate inquiry that her company had contributed around $1 million to a $5 million advertising campaign defending gas profits.
The Australian Energy Producers, the industry's peak body in Australia, had "six or seven" of its other large members contribute to the fund, which has been used to pay for advertising across social media and elsewhere arguing that the industry contributes its fair share.
"What we are trying to do through that (the campaign) is to counter-balance the very selective and misleading representations of a number of other social commentators," Wake told the committee.
"It is a modest and proportionate amount to spend to put some salient facts in front of the Australian public. It is balanced, it is fact-based."
Punter pushback
Social media commentator Konrad Benjamin — who goes by the handle Punter's Politics on Instagram and elsewhere — has been campaigning for a gas tax for months and vented his frustration at the PM online.
"Then we will end your run as PM, mate," Benjamin said in a comment responding to a news article about the gas tax rejection. "Tax gas or get off the pot."
The 35-year-old with over half a million Instagram followers gave statements to the Senate committee, telling representatives that Australians have been "sold out" over perceived lax taxation laws.
"Albo using gas lobby talking points ... I guess that's the side he's choosing!" Benjamin wrote in another comment about the PM's remarks.
More fuel for regions, government announces
Energy Minister Chris Bowen and Trade Minister Don Farrell announced on Friday that the federal government had secured another 100 million litres of diesel, with around half of it heading to Queensland communities, including Townsville, Gladstone and Mackay.
Bowen said those 50 million litres of diesel — around 300,000 barrels — were part of the 400 million litres of additional diesel that the government had secured in the past seven days.
"We are strengthening our fuel supply chain, working with industry, and these additional cargoes from our third partner to secure shipments to date is proof of this work," Bowen said in a statement.
Farrell said there was more oil to come.
"Through these early actions and the additional shipments that are expected to arrive in the coming weeks, we are securing supplies that are essential for our industries to keep moving in the face of the continued conflict in the Middle East," he said.
— With additional reporting by the Australian Associated Press.
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