The Albanese government is under growing pressure from inside and outside the party to change how it taxes gas.
On Tuesday, social media influencer Konrad Benjamin told a Senate inquiry that ordinary Australians have been sold out by their own government.
On the same day, former Treasury secretary Ken Henry told the inquiry that Australia’s current gas tax system is so weak it should embarrass anyone who defends it.
Backbencher Ed Husic, the Labor Environment Action Network and Commonwealth Bank chief executive Matt Comyn have all backed calls to raise taxes on gas exporters before the May 12 budget.
At the centre of the push is a proposed 25% tax on gas exports. The Australian Conservation Foundation supports that model and dozens of advocacy groups back it too.
Rod Sims from the Superpower Institute has gone further. He wants a 40% cashflow tax based on Norway’s system. He estimates it could bring in about $27 billion a year if gas prices stay high because of the conflict in the Middle East.
Energy Minister Chris Bowen has not ruled out a windfall tax but said all decisions rest with Treasurer Jim Chalmers and cabinet.
Resources Minister Madeleine King has previously downplayed the chance of changes and stressed the importance of the gas industry.
At the same time, Treasury has been asked by the Prime Minister’s department to look at options including changes to the Petroleum Resource Rent Tax and new tax structures.
The Greens, who set up the inquiry through a Senate motion have warned that leaks from inside Labor suggest some people in the party are trying to weaken or stop reform altogether.
Greens Treasury spokesperson Nick McKim said the evidence put to the committee made the case for change overwhelming. He urged Labor not to waste what he called a once in a generation chance to fix the tax system.
Peak body Australian Energy Producers says the industry paid close to $22 billion in taxes and royalties in 2024/25.
The group has launched advertising campaigns it says set the record straight on what producers pay. One ad featured an actor that critics said was made to look like Benjamin.
The budget is just three weeks away and global energy prices remain unpredictable because of the ongoing Iran conflict.
Whether Labor acts on this wave of pressure or holds its ground against a windfall tax will likely shape not just the budget but the government’s connection with a generation of Australians who now follow politics through social media instead of traditional news.
