While Trump may deny climate change and be pushing for greater fossil fuel extraction, the result of his actions of attacking Iran with Israel, without consulting the UN or any other countries he has since called on for help, is that he is creating the conditions for Australia to take decisive action on electrification, reduce reliance on fossil fuels, and the call for greater tax on gas corporations.
While Trump continues to spit the dummy over countries standing up and saying ‘no’ (for now) to his demands for help to reopen the Strait of Hormuz, the spiralling oil prices, fuel shortages, and risks to the food supply are driving the Albanese government to finally consider some long-overdue action.
Australia has some of the lowest taxes on gas in the world and last Friday saw the Treasury modelling a 25 per cent levy on gas exports high profits as a result of the current war in the Middle East. It seems that the people of Australia are finally waking up to the fact they are being royally ripped off by foreign companies who are making billions off our gas and not paying their fair share to the Australian people for the privilege.
‘Australia missed out on $63 billion in revenue by failing to tax gas exports after Russia’s invasion of Ukraine. That’s enough for free childcare or free university – but instead it lined the gas industry’s pockets,’ according to The Australia Institute.
‘As multinational gas corporations stand to make windfall profits from global crises once again, we can’t afford to make the same mistake twice. ’
It is time for the Australian government to take action, not only to tax windfall profits as a result of the war, but to tax gas profits overall in a way that provides for Australia, the impacts of climate change, cost-of-living relief, lowers the domestic gas price, and stops the many multinational gas companies using loopholes to pay zero royalties.
Gas is nonetheless a fossil fuel and creating a wealth fund or something similar, like Norway has built from its tax on oil and gas, from the tax revenues would allow the government to drive forward the move away from fossil fuels towards electrification and developing solar and wind generation supported by a range of storage solutions.
Reducing reliance on gas and the push towards electrification is being supported in NSW by a broad coalition of unions, health experts, community and environmental groups, which is calling on the NSW government to create a plan to drive down gas use across the state and increase electrification.
New research (www.lockthegate.org.au/gas_demand) commissioned by Lock the Gate Alliance, found that, ‘74 per cent of gas demand in NSW could be replaced today with commercially available technology, such as electrification and heat pumps, and that a 52 per cent gas reduction target by 2035 is achievable’.
The alliance is urging Climate Change, Energy, Heritage and the Environment Minister Penny Sharpe to include an economy-wide gas demand reduction strategy in the state’s 2026 Net Zero Plan.
‘We have the tools to power our homes and industries with clean energy right now. By fast-tracking electrification, NSW can secure lower bills and a safer climate at the same time,’ explained Climate Councillor Greg Bourne.
According to Rod Sims in The Guardian, ‘Other major fossil fuel exporting countries typically share between 75 per cent and 90 per cent of fossil fuel profits. Australia shares only 27 per cent, through a combination of the corporate tax, royalties, and the petroleum resource rent tax (PRRT). With profit defined in cashflow terms, as in Norway, Australia shares even less: just 18 per cent.’
It is for the Albanese government to act on gas tax reform. Allowing multinational companies to continue to profit at the cost of the Australian people, their livelihoods, and future generations, is unacceptable. Take the time to sign the Australia Institute’s ‘Tax the gas industry its fair share’ petition at: https://australiainstitute.org.au/initiatives/type/petitions, and the Tax Justice Network’s ‘It’s time to fix the failed petroleum tax’ petition at: https://www.taxjustice.org.au/prrt. Otherwise, contact your local politicians to let them know you are demanding change.
Aslan Shand, editor
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