Media release: Greens’ reckless gas tax is an attack on Australia’s energy security and affordability

Australian Energy Producers Chief Executive Samantha McCulloch has warned a Greens-led push in the Senate today for higher taxes on the gas industry is a direct threat to Australia’s energy security that will stop much-needed investment in new oil and gas supply and drive-up energy costs.

Ms McCulloch said the disinformation campaign from the Greens and other anti-gas groups needed to be called out for what it is – a reckless push to shut down Australia’s gas industry at a time when energy security and cost-of-living pressures should be the focus for all parliamentarians.

“It is no coincidence that the loudest voices calling for more taxes on the gas industry are the same voices trying to shut the industry down — a position that would lead to less supply, higher prices and significant economic damage,” Ms McCulloch said.

“At a time of global instability and tightening energy markets, the priority should be strengthening energy security — not hitting an essential industry with more taxes.

“The facts are that the oil and gas industry is already Australia’s second-largest corporate taxpayer, contributing $21.9 billion in taxes and royalties last year alone.”

Ms McCulloch said the Greens’ push for a 25 per cent additional tax would push effective tax rates to around 80 to 90 per cent for some companies, destroying Australia’s ability to compete for global investment.

“No business would be able to operate under those conditions — and the result would be investment and jobs going offshore, less domestic gas supply and higher energy costs for Australian households and businesses.

Ms McCulloch said the global energy crisis reinforced the importance of being self-sufficient in meeting our energy needs, and the strategic and economic importance of Australia’s abundant gas resources.

“Australia’s domestic gas market is currently well supplied, with prices at their lowest in years despite surging international oil and gas prices. We cannot take this for granted.

“Targeting gas exports with higher taxes in the grip of a global energy crisis would send a damaging message to our trade partners that we rely on for essential fuel imports, and destroy Australia’s reputation as a reliable energy supplier.

“The Federal Government must rule out any new taxes on Australian gas producers — anything less sends a clear signal that Australia is closed for business.”