Australia's Gas Tax Plan Gains Opposition Support

An Australian opposition lawmaker has signaled he could support a new tax targeting gas profits, as the government weighs options to bolster federal finances during volatile global energy conditions.

The comments add political momentum to a proposal the Albanese government is said to be assessing, even as industry groups and an international energy official warn that abrupt tax shifts can affect investment decisions.

What is being discussed

Andrew Hastie, the opposition’s Shadow Minister for Industry and Sovereign Capability, said he is open to a flat 25% levy on gas profits.

He made the remarks on Guardian Australia’s Australian Politics podcast, linking the debate to public unease about earnings by resource companies and the need to handle proceeds from natural resources carefully.

Government modeling and stated aims

The Albanese government is reportedly running scenarios on a 25% tax on gas profits and also considering changes to the petroleum resource rent tax (PRRT) and corporate income tax settings.

One stated objective of the broader package is to create a Scandinavian-style sovereign wealth fund, modeled on Norway’s approach, to support Australia’s long-term economic position.

Norway’s sovereign wealth fund is cited as a reference point, with a reported size of about $2.2 trillion, underscoring the scale policymakers are pointing to when discussing long-horizon savings vehicles.

Pushback and investor warnings

Gas industry groups have opposed the concept, with Australian Energy Producers arguing that an export levy would harm the economy and weaken energy security.

Separately, International Energy Agency chief Fatih Birol has cautioned the Albanese government that sudden corporate tax changes can discourage investors, a concern often raised in capital-intensive energy projects.

Political fault lines and what is unclear

Hastie’s openness may not reflect a unified opposition position. Shadow Treasurer Tim Wilson has voiced worries that additional taxes could reduce investment and slow job creation.

Key design details remain unknown in the public reporting, including how “profits” would be defined, whether the measure would apply to domestic sales, exports, or both, and how it would interact with the PRRT and corporate tax rules.

For markets and trading partners, the debate matters because Australia is a major participant in global gas supply chains, and fiscal changes affecting producers can influence investment planning and perceptions of policy stability.