The Albanese Government's domestic gas reservation scheme will deliver cheaper local gas for households across the country, but ACOSS says the government must also adopt a 25% gas exports tax.
Requiring gas exporters to supply 20% of their production to the domestic market from 1 July 2027 will help put downward pressure on energy prices. The Government must ensure gas companies cannot game the reserve to avoid obligations and inadvertently drive unnecessary or unprofitable gas production.
"Australia's focus on exporting our vast gas reserves has resulted in a tripling of domestic energy prices, driving up inflation and household bills," said ACOSS CEO Cassandra Goldie.
"A national domestic gas reserve is an important way to guarantee cheaper domestic gas supply while we shift to renewable energy, driving down domestic gas and electricity prices to help households."
However, ACOSS is urging the government to also adopt a 25% tax on gas export revenue.
"The Senate Committee on Taxing Gas Resources released today made clear that the people of Australia are not and should get a fair return from exporting our gas resources," Dr Goldie said.
"At a time when people are struggling with rising rents, energy bills and cost of living pressures, multi-national gas corporations in Australia are making billions from publicly owned resources.
"A 25% tax on gas exports would raise $17 billion a year, further lower electricity prices and still provide sizable profits for gas companies.
"Such a tax would not impact existing gas export contracts, as the price is set to global oil prices. Gas corporations will take a modest cut to their profits, which instead will go back to the people of Australia.
"Labor senators' additional comments in the Senate report left open the door for future tax reform of gas companies. It's time for the Albanese government to make polluting gas corporations pay their fair share in Australia and use the funds to help people doing it tough and accelerate the transition to secure renewable energy."
Given the domestic gas reserve won't start until July 2027, we are also urging the government to do more to immediately help people struggling the most with energy bills. ACOSS is calling on the government to:
- Provide targeted support to help First Nations, renters and low-income home owners to improve the energy efficiency and electrify their homes to get off costly, polluting and unhealthy gas;
- Remove renewable subsidies from energy bills and fund the costs directly in the federal budget;
- Provide energy debt relief; and
- Substantially raise the rate of Jobseeker and related payments
