Australia’s peak council for community services, the Australian Council of Social Service, has joined the torrent of support that includes the Greens and crossbench MPs for a levy on gas exports, originally proposed by the ACTU.

“We need a 25 per cent levy on gas exports, not a temporary windfall profit tax, to guarantee fair public returns now and into the future,” ACOSS CEO Cassandra Goldie said late last week.

“It would generate up to $17 billion per year to invest in energy affordability and renewables, adequate income support payments, health, housing and community services.

“It’s time for gas companies to pay their fair share and use the funds to help the people doing it toughest.

“We urge all parliamentarians to listen to the people of Australia and back a 25 per cent levy on gas exports.”

It’s not surprising ACOSS is advocating for Australia to seize the opportunity for an injection of revenue from an industry awash with cash from selling Australian gas that it largely gets for free.

Australia faces a budget deficit that makes it harder to increase funding for social services and cost-of-living relief.

Ordinary Australians are struggling with rising prices for essential items, there is a housing crisis and welfare payments are manifestly inadequate for the most disadvantaged Australians.

Fuel prices are going through the roof, caused by the very conflict filling the coffers of the multinational gas giants that export Australia’s gas.

The ACOSS announcement follows former deputy opposition leader Andrew Hastie’s support for the tax and a sovereign wealth fund similar to Norway’s Government Pension Fund. It has amassed about $3 trillion from the nation’s oil and gas exports for the benefit of the Norwegian community.

Former Labor industry minister Ed Husic has also spoken out in support of the tax.  

One Nation supports imposing royalties on gas it estimates would raise $10-13 billion in revenue for Australians annually.

Currently, multinational gas companies get more than half the gas they export from Australia for free because the federal government doesn’t charge them royalties.

Most also pay no petroleum resource rent tax. It is the main tax imposed on the gas industry and has been in place for almost 40 years.

Gas exporters have made about $100 billion in windfall profits due to the Ukraine conflict since 2022. They stand to make potentially even greater windfall profits during the current crisis amid the war on Iran. Under current arrangements, Australians will miss out.

If there had been a 25 per cent gas tax since 2022, the Australian government would have raised about $63 billion, enough for free universal childcare or free tertiary education.

The support of the Greens, independents and One Nation for higher taxes on the gas industry reflects the view of the overwhelming majority of Australians, across the political spectrum, who want a gas export tax to fund improvements in services such as health and aged care.

With the Greens declaring they stand ready to help push the reform through parliament, and the numbers in the Senate to do so, the Albanese government could pass this legislation within weeks.

This article first appeared in The Point. Read the original here

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