Previous Australia Institute analysis shows the gas policy mess created by Australian governments allowing virtually unlimited exports of gas from eastern Australia has led to a tripling of gas prices and doubling of wholesale electricity prices.

The analysis shows that incremental and technocratic attempts to fix the problems have failed, and that the ACTU proposal would solve these problems. It would:

• Increase domestic gas supply by providing a strong incentive for gas companies to supply uncontracted gas to Australian customers rather than selling it on the global spot market.
• Reduce domestic gas prices by significantly increasing the supply of gas to the domestic market.

Importantly, unlike the other technocratic policies, the ACTU proposal could not easily be gamed by the gas industry, which has run rings around the government for decades.

The proposal would also provide a windfall benefit of around $12.5 billion annually that could: ◼️triple spending on housing ◼️ boost the government’s Future Made In Australia funding for manufacturing fivefold  ◼️cut the cost of prescriptions with a 58% increase to the pharmaceutical benefits scheme ◼️double spending on public schools◼️increase childcare subsidies by 75% ◼️or eliminate HECs.

“Australian governments created a gas market dumpster fire by approving virtually unlimited gas exports, putting the interests of foreign-owned gas corporations ahead of Australians, said Mark Ogge, Principal Adviser at The Australia Institute.

“A decade of incremental technocratic policies like the Australian Domestic Gas Security Mechanism, Heads of Agreements and Gas Code of Conduct have comprehensively failed, and it’s time for a fresh approach.

“The ACTU’s proposed 25% tax on gas export revenue is a simple, effective solution that cannot easily be gamed by the gas industry.

“If the Australian government persists with tweaking its ineffective incremental technocratic reforms, it shows it is not interested in solving the problem, and that it is continuing to put the interests of foreign-owned gas exports ahead of the interests of Australians.

“On top of finally solving gas price and supply issues in Australia, the ACTU proposal would get a fairer share of revenue from gas exports for Australians, bringing us closer to the other gas exporting countries like Norway and Qatar.”