We could all learn from Australia’s brewing movement to tax gas
SkimNews Take
Australia's low petroleum gas tax, despite its significant export volume and market value, suggests a national resource policy prioritizing industry competitiveness and foreign investment over immediate domestic revenue capture during price surges.
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- Australia is the world’s third‑largest exporter of petroleum gas, with annual export value close to $50 billion, mainly to Japan, China and Southeast Asia.
- Petroleum Resources Rent Tax (PRRT) brings in about $2 billion per year for the Australian Treasury, despite the $50 billion gas export market.
- Australian Tax Office calls oil and gas companies “systemic nonpayers of tax” after they have largely evaded PRRT payments.
- Norway levies high taxes on its oil and gas sector, using the proceeds to fund the world’s largest sovereign wealth fund.
- Australia proposes a 25 % export levy on its petroleum gas shipments, aiming to raise billions in new revenue.
Why it matters: If the 25 % export tax passes, Australia’s government would gain $12‑13 billion annually, while oil firms would lose untaxed profit. The revenue would fund public services and curb reliance on extractive elites.
