Labor’s upcoming national conference represents the best chance for a tax on gas exports to become a reality, advocates say, as senior ministers play down the prospects.
Hundreds of delegates will converge on Adelaide from Thursday for Labor’s triennial summit, which will determine the party’s official policy agenda.
Among the items on the agenda in its draft platform are plans to redistribute wealth from resources to the general public, raising the prospect of a gas export tax.
“Labor will ensure that the Australian people receive a fairer return from their natural resources, including through appropriate taxation arrangements, while securing Australia’s role as a reliable international energy supplier and investment partner,” the draft national platform says.
The government was under pressure to implement a 25 per cent tax on gas exports ahead of the federal budget, but the proposal was put on hold after the US-led war on Iran broke out.
Australia was negotiating with Southeast Asian allies for fuel supply in exchange for their receiving LNG.
Australia Institute chief economist Greg Jericho said potential debate about issues around the gas tax at the conference signalled movement on the issue.
“It really shows that amongst the party faithful, that there is a real desire for something to be done,” he told AAP.
“There is this belief that has been growing, and has now reached a pretty critical size.”
The independent think tank has been among those pushing for a gas tax, with a viral campaign ahead of the budget to pressure the government to implement the measure.
Estimates have shown a 25 per cent tax would yield an extra $17 billion for the federal budget.
Dr Jericho said the draft platform could refer to other methods to reap the financial rewards of Australia’s resources sector, but a flat tax would be the most effective way to do so.
“We’re not getting a fair return on our gas, not getting a fair return on a non-renewable resource,” he said.
“We could try and reform the petroleum resources rent tax. We could do a gas super-profits tax or something.
“The problem is we’ve tried to do that. We’ve tried to do that for well over a decade.”
Environment Minister Murray Watt said a proposal for a gas export tax on the conference floor remained to be seen.
“What we’re seeking to do more than anything when it comes to gas is about maximising our fuel security,” he told Sky News.
“I’m not going to predict the democratic operations of our conference, but I think it is the case that the vast majority of delegates at this conference are supportive of the actions our government has been taking.”
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