The Albanese Government's announcement of a gas reserve for Australians is an acknowledgement that there is no gas shortage, and that excessive exports have driven up energy prices for Australians.
The Gas Market Review Report acknowledges that unrestricted exports linked Australian prices to world prices, tripling the cost of gas on Australia's east coast over the last ten years.
Currently 80% of Australia's gas is exported including two thirds of gas produced on the east coast.
The new policy will require gas exporters to supply between 15% and 25% of gas they produce to the Australian market, as opposed to simply being required to "offer" it to Australians.
Next, the government needs to address:
- The giveaway of gas resources – over half the gas exported from Australia is given to gas exporters for free, with no royalties and no petroleum tax paid.
- The need to stop new gas projects - Australia has no need of new gas projects that damage the climate and divide communities.
- Reducing gas demand - helping Australian businesses and households use less gas.
"Finally, after a decade of policy failure, the Government has acknowledged there is no gas shortage and exports are the problem," said Mark Ogge,Principal Advisor at The Australia Institute.
"This is an acknowledgement that the gas industry's constant claim of a gas shortage was a lie, designed to force governments to support their unnecessary new gas export projects.
"The devil is in the detail and there is a long way to run on this. If the government caves into the gas industry again, it will join the long list of failed Australian gas policies."
The Australia Institute supports the ACTU's proposal for a 25% tax on gas exports which would solve the gas crisis and raise $17 billion for the Australian community annually, enough to;
- Quadruple federal government expenditure on housing.
- Double the Child Care Subsidy.
- More than double federal spending on schools.
- Eliminate HECS
