Full Breakdown
Albanese Rules Out 25% Gas Export Tax Ahead of 2026 Budget
4/29/2026, 12:28:21 PM
Core Decision and Rationale
Prime Minister Anthony Albanese announced that the federal budget to be delivered on 12 May 2026 will contain no new levy on existing gas export contracts. Speaking at a Chamber of Minerals and Energy breakfast in Perth, he linked Australian LNG exports to national fuel security and warned that “the middle of a global fuel crisis is the worst possible time to jeopardise those partnerships, or the investment that underpins them.” The government framed the decision as a safeguard for long-term contracts with Asian buyers and for domestic gas availability.
Background: PRRT and the Export-Tax Campaign
The debate centres on a proposed 25 % ad-valorem tax on the value of gas exports, promoted by independent Senator David Pocock, the Greens and several community groups. Advocates argue the levy would replace the Petroleum Resource Rent Tax (PRRT), which yielded $1.48 billion in 2023-24 after a 40 % rate applies only after capital costs are recovered. Critics claim the PRRT “is broken” and fails to capture sufficient revenue from offshore oil and gas projects. The campaign intensified after the Iran conflict disrupted global oil supplies, prompting the government to stress energy-security concerns.
Key Actors and Positions
- Anthony Albanese – Prime Minister, opposes the export levy, cites fuel-security risks.
- David Pocock – Independent Senator, leads the tax campaign, calls the decision “disappointing.”
- Larissa Waters – Greens leader, says national momentum for a 25 % tax is growing.
- Ed Husic – Labor MP, continues to push for the levy, predicts public pressure will force a change.
- Courtney Houssos – NSW Natural Resources Minister, announces new gas-exploration areas in the Bancannia and Pondie Range troughs.
- Roger Cook, Madeline King, Liz Wescott – WA Premier, federal Resources Minister and Woodside CEO, attended the Perth event.
- Lock the Gate Alliance – Rural advocacy group, protests the NSW exploration decision as a risk to water and agriculture.
Financial Figures and Potential Revenue
- PRRT revenue (2023-24): $1.48 billion.
- Gas sector taxes and royalties (latest year): $22 billion.
- Senator Pocock estimates the 25 % export levy could raise up to $17 billion annually.
- Proposed domestic gas reservation: WA’s 15 % model being adapted for an east-coast policy.
- Infrastructure commitments announced alongside the tax decision: $1.1 billion Anketell Road upgrade and $45 million for bilateral environmental-assessment agreements.
Official Statements & Responses
Albanese reiterated that the budget will “not undermine existing contracts on gas exports” and noted that gas prices have not surged since the Iran war began, dismissing the need for a windfall-profits tax. Treasury was asked to model a windfall-profits tax and PRRT adjustments, but the government concluded that the political and economic costs outweigh potential gains. The prime minister also signalled that the east-coast domestic-gas reservation policy is “close to being finalised.”
Opposition and Criticism
Pocock accused the government of “caving in to gas companies” and argued the levy would generate a “return on that resource.” Greens leader Waters highlighted the “massive national momentum” for a minimum 25 % tax. Labor MP Husic challenged Albanese’s “populist” label for the campaign, noting the term was previously used against Labor’s own banking inquiry. The Lock the Gate Alliance warned that new NSW exploration could endanger “communities, water and agriculture.”
On-the-Ground Reactions
During the Perth breakfast, three Lock the Gate protesters briefly stormed the stage, prompting police to issue move-on notices. Albanese responded that “people have a right to protest… but they should do so in a way that is appropriate.” Outside the venue, a drum-circle protest and pro-Palestinian demonstrators gathered.
Conflicting Views & Gaps
Sources differ on whether gas prices have risen sufficiently to justify a windfall-profits tax; Albanese says they have not, while Pocock’s estimates of potential revenue assume higher price levels. No consensus exists on the exact fiscal impact of replacing the PRRT with a 25 % export levy.
Verbatim Quotes
- “The middle of a global fuel crisis is the worst possible time to jeopardise these partnerships, or the investment that underpins them,” — Anthony Albanese, Prime Minister
- “We have a government who, at every turn, seems to side with multinational companies, multinational gas exporters, ahead of the Australian people saying, ‘well, just now is not the time’.” — David Pocock, Independent Senator
- “The massive national momentum for a minimum 25% tax on gas exports is working,” — Larissa Waters, Greens leader
- “That’s not surprising because David Pocock does not support gas production. If you take gas production to zero, the tax revenue we get is also zero.” — Matt Canavan, Nationals leader
- “I continue to say people have a right to protest by all means and to express their views, but they should do so in a way that it is appropriate, and we work with security agencies on this,” — Anthony Albanese, Prime Minister
What’s Next
The east-coast domestic-gas reservation policy is expected to be finalised before the budget. The 2026 budget will be tabled on 12 May, and the government will host Japan’s prime minister later in the month to discuss LNG supply security. Ongoing pressure from cross-bench senators and community groups suggests the export-tax debate may re-emerge before the 2028 election.
