Albanese won’t bring in a gas export tax next week – but he’ll struggle to hold off pressure forever
Prime Minister Anthony Albanese is not introducing a gas export tax in next week's budget due to concerns about backlash from key Asian energy partners like Japan. Australia supplies Japan with about 40% of its LNG, and Tokyo opposes any market interventions that could disrupt supply stability. However, domestic pressure for a tax is growing, led by figures like Senator David Pocock and supported by unions and Greens, as Australians face rising energy costs while gas companies report record profits.
- ▪Australia supplies Japan with approximately 40% of its liquefied natural gas (LNG), making Japan sensitive to potential export taxes.
- ▪Japanese political and corporate interests, including government-linked Inpex, oppose a proposed 25% gas export levy, viewing it as a threat to supply reliability.
- ▪Senator David Pocock, supported by the Australian Manufacturing Workers’ Union and the Greens, is leading a campaign for a gas export tax amid public frustration over high energy prices and corporate profits.
- ▪Albanese has ruled out applying a gas export tax to existing contracts, calling populist rhetoric on the issue unhelpful.
- ▪The government faces increasing domestic pressure to act on gas pricing despite diplomatic and trade concerns with Asian partners.
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Anthony Albanese with Japanese prime minister, Sanae Takaichi, on Monday. Australia supplies Japan with roughly 40% of its LNG, making the east Asian nation hostile to any market intervention that it considers a threat to the stability of those supplies. Photograph: Hollie Adams/ReutersView image in fullscreenAnthony Albanese with Japanese prime minister, Sanae Takaichi, on Monday. Australia supplies Japan with roughly 40% of its LNG, making the east Asian nation hostile to any market intervention that it considers a threat to the stability of those supplies.
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