Alternatively, the proposed tax on gas exports would be enough to:

• Cut the cost of prescriptions with a 58% increase to the pharmaceutical benefits scheme;
• Double the Australian government spending on public schools;
• Increase childcare subsidies by 75%;
• or Eliminate HECs.

“Australia is one of the world’s largest exporters of gas, but the Australian government receives more from HECS repayments each year than it gets in revenue from the broken Petroleum Resource Rent Tax each year,” said Richard Denniss, Executive Director of The Australia Institute.

“The Prime Minister says that ‘progressive patriotism’ should define Australia’s trade policy, and it is hard to see a better way to put Australians first than to stop giving enormous quantities of gas away for free and to start putting the interests of Australian manufacturers and households first.

“The introduction of a gas export tax would incentivise gas companies to supply more gas to the Australian market, bringing down both gas and electricity prices for Australian households and businesses.”

Research by the Australia Institute shows:

• 80% of Australia’s gas production is currently exported, primarily by foreign-owned companies
• Over half (56%) of the gas exported from Australia is given away for free, including 78% of gas exported from WA, and 100% of gas exported from the NT, with no royalties paid on this gas
• The Commonwealth Treasury admitted in 2023 that no PRRT had ever been paid on gas exported from Commonwealth waters
• Australia places virtually no restrictions on the export of Australia’s gas to the global spot market ahead of Australians

“The ACTU’s proposal would not only provide a large boost to Commonwealth revenue that could vastly improve Australia’s health, education and housing, it would cut energy bills for Australian households and businesses by incentivizing gas companies to supply more gas to Australians and in turn lower the price,” said Richard Denniss.

“This is precisely the sort of big, bold policy the productivity roundtable should be looking at.”