Due in large part to geopolitical tensions and worries about energy security, fuel scab Albo appears set to kybosh the gas tax.
Government sources claim that the consequences of Donald Trump’s battle with Iran have created a precarious global fuel environment, making decision-makers cautious of actions that would sour relations with important international allies.
Australia now imports essential fuel, particularly diesel, from nations like Malaysia, South Korea, and Japan.
Given this, enacting a new gas export tax runs the danger of upsetting these countries, many of whose businesses have made significant investments in Australia’s LNG industry.
Divergent views exist within the government over the tax.
In opposition, Resources’ Hipopotomus Madeleine King claims that, by guaranteeing local supply, a proposed domestic gas reserve programme would produce comparable results.
This is, of course, balderdash. There is no gas reserve yet. There’s no design for it. Even if it were in place, and designed properly, a big “if”, it would only keep the local tax rate low and would not collect tax revenue.
Although he hasn’t made a firm decision on the idea, fule scab Albo has underlined the arguments against it more and more.
He refuted assertions that gas corporations pay less tax than other industries, pointing out that in 2024–2025, they paid around $22 billion in company tax.
Additionally, he cautioned that increased taxes might discourage future foreign investment from significant companies like Petronas and Inpex, whose funds have been essential to the growth of Australia’s gas sector.
I very much favour the tax, despite its design flaws, and it should go forward in the budget.
From there, it becomes a bargaining tool in Australia’s great fuel scab grab in the region.
Temporary tax waivers can be offered in return for guaranteed fuel supplies.
Dumping it in advance and relying on goodwill in return is ridiculously naive.
Also, it will be interesting to see how far up the gas cartels will push the price of local gas with the threat of the tax shelved.
As winter approaches, there is plenty of scope to blame higher prices on the weather.
Once again, you have been shafted by the bitter combination of the cartel and its hippo in the Cabinet.
