Albanese won’t bring in a gas export tax next week – but he’ll struggle to hold off pressure forever
Summary
Australia’s Prime Minister Anthony Albanese has decided not to introduce a new gas export tax in the upcoming budget, mainly due to concerns about damaging trade relations with Japan and other Asian partners. However, pressure from unions and some politicians to impose the tax on gas exporters will likely continue in the future.Key Facts
- Prime Minister Albanese met Japanese leader Sanae Takaichi to discuss economic, energy, defense, and cyber cooperation.
- Japan gets about 40% of its liquefied natural gas (LNG) from Australia, making it opposed to new export taxes that could threaten supply.
- Australian gas exporters argue a proposed 25% export tax could harm Australia’s reputation as a reliable energy supplier.
- The Albanese government decided not to introduce the gas export tax now to avoid upsetting important trade partners during a global energy crisis.
- Independent Senator David Pocock and trade unions like the Australian Manufacturing Workers’ Union support a 25% gas export tax to address rising household costs and company profits.
- The unions’ campaign is supported by major labor groups, creating ongoing political pressure for the government.
- Prime Minister Albanese called critics of his stance “populists” but faces pressure from influential labor organizations.
- The debate over a gas export tax is expected to continue ahead of Labor's national conference in July.
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