Submission to the Australian Senate Select Committee on the Taxation of Gas Resources
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The Australian Senate Select Committee on the Taxation of Gas Resources held an Inquiry into whether the government should change the tax regime for gas companies, in particular the Petroleum Resource Rental Tax, or PRRT.
In this submission, we argue the rationale for an increased tax on gas exports, for climate change reasons.
Australian policy responses to the current energy crisis, including prospective changes to energy taxation regimes, provide an ideal opportunity to initiate a phase-out of gas and other fossil fuels.
Any reduction in current demand or the future investment attractiveness of gas or other fossil fuels would be consistent with limiting warming to 1.5°C.
Australia should support a shift from domestic and international dependence on fossil fuels towards renewable energy and related 1.5°C-aligned transformations.
Increased taxation or substantially increased resource rents levied on exported liquefied natural gas (LNG) could have large climate benefits. Australia exports far more gas, and associated emissions, than it uses domestically, and LNG production is the largest end use sector for Australian gas inside Australia.
New taxes could signal that Australia is initiating a transition away from fossil fuels, in particular gas exports. This would need to be coupled with diplomatic efforts to operationalise the government’s long-discussed plans to create green export markets.











