Questions
Questions people ask
Straight answers to common questions about Australia's gas tax, including the industry's case.
What is the proposed 25% gas export tax?
A flat tax of 25% on the value of Australia's gas exports. Unlike the PRRT, which taxes profit after deductions, it would apply to export revenue, so it would be paid from the first cargo.
What the industry says
Industry groups argue a tax on revenue ignores costs, so it could make high-cost projects unviable, discourage new supply and unsettle Australia's trading partners and long-term customers.
What the evidence shows
25% of 2024–25 LNG exports ($64.6b) is about $16b a year. The PRRT raised about $1.4b to $1.9b in 2024–25, depending on the measure (Budget cash receipts or ATO assessments).
Will the government implement a 25% tax on gas exports?
Not at present. The Albanese government ruled it out before the May 2026 Budget, left the PRRT unchanged, and is pursuing a domestic gas reservation scheme instead.
What the industry says
The government says its priorities are fuel supply and relations with the trading partners Australia relies on for fuel, that existing taxes already apply, and that gas reservation is the better fix for domestic supply.
What the evidence shows
A cross-party Senate committee agreed in May 2026 that gas taxation should be revisited once the Middle East conflict ends.
Would a 25% export tax raise more than the PRRT?
Almost certainly, at today's prices. 25% of recent LNG exports is about $16 billion a year, against roughly $1.4 to $1.9 billion from the PRRT in 2024–25.
What the industry says
The industry says it already pays company tax, royalties on some projects and PRRT, and that a large new tax would reduce investment and future supply, and so future tax.
What the evidence shows
PRRT paid was $1.87b in 2024–25 (ATO), about 4% of project revenue. 25% of $64.6b of LNG exports is $16.2b.
Who would actually pay it: gas companies or overseas buyers?
Contested. Evidence to the Senate inquiry, including from Treasury, suggested most of the cost would fall on producers; the government and industry argue it could raise prices for overseas buyers and strain trade relations.
What the industry says
Producers and the government argue an export tax would raise costs for overseas buyers, damage Australia's reputation as a reliable supplier and deter the investment needed for future supply.
What the evidence shows
Treasury's evidence to the Senate inquiry was that the burden would be more likely to fall on producers. The committee's majority report did not resolve the question.
Would an export tax lower gas prices in Australia?
Possibly, a little, over time. Taxing exports but not domestic sales makes selling at home relatively more attractive, but long-term export contracts limit how much gas could be redirected quickly.
What the industry says
The industry argues new taxes reduce investment in new supply, which would push prices up over time, and that the reservation scheme itself risks weakening investment.
What the evidence shows
The effect on local prices has not been modelled in the public proposals; it depends on contracts, pipelines and how much new supply is developed.
How does an export tax compare with the gas reservation scheme?
They do different jobs. Gas reservation aims to keep more gas at home and raises no revenue; an export tax raises revenue and may nudge more gas to the local market. They could exist side by side.
What the industry says
The industry opposes both: it argues reservation is a short-term intervention that weakens investment, and an export tax would do the same at greater scale.
What the evidence shows
Gas reservation raises no revenue. A 25% export tax on 2024–25 LNG exports would have raised about $16b.
Is a 25% gas export tax popular?
Polling commissioned by the Australia Institute, which supports the tax, found 72% of Australians in favour in April 2026, including majorities of Labor, Liberal, One Nation and Greens voters.
What the industry says
The industry and the government argue popularity doesn't make a tax well designed, and that investment, supply and trading partners must come first.
What the evidence shows
One poll, from an advocacy organisation. We have not found independent polling on the same question.
What you can do
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