It would also bring down domestic gas prices for Australian households and businesses.
The Australian Labor Party will reportedly include a new tax regime for the gas export industry in its party platform today at the ALP National Conference in Adelaide.
According to the Nobel Prize winning economist, Professor Joseph Stiglitz, it is a ‘no brainer’ for Australia to tax its gas exports.
“It is great news that the Labor Party seems on the verge of adopting this simple policy which will be good for the Australian economy,” said Dr Richard Denniss, co-CEO of The Australia Institute.
“It will help restore faith in Australia’s democracy among the growing number of Australians who think their governments are no longer willing to stand up to foreign companies.
“Apart from having huge volumes of gas, Australia has a huge opportunity to finally introduce a gas policy which benefits all Australians.
“When Labor was re-elected last year, the Prime Minister spoke about ‘progressive patriotism’, with policies that do things ‘the Australian way’.
“He now has an opportunity to put those words into action, with a policy that would be hugely popular and benefit millions of Australians.
“Tax policy doesn’t have to be complicated to be effective. In fact, the more complicated it is, the more it can be exploited.
“Likewise, fixing big problems doesn’t have to be complicated. This government, with its huge majority, could tax gas exports and spend the money raised on repairing our schools, hospitals and roads, building public housing or supporting older Australians and those living with disabilities.”
Ed Husic, Federal Member for Chifley, said: “We deserve a fairer, better deal on our resources. That’s what Australians are saying from across the country – and across the political divide.
“Forget the multi-million dollar scare campaigns being run by multi-national gas profiteers – it’s time for our fair share, locking down revenue that can be invested for the long term good of the nation.
“Our party needs to seize the moment and do the right thing by everyday Australians and our manufacturers.”
Thomas Mayo, Assistant National Secretary of the Maritime Union of Australia, said the case for a 25 per cent gas export tax was overwhelming.
“If we taxed gas appropriately, then we would see more than enough money to invest in the infrastructure in this country.
“Australians are waking up to how cheaply the nation’s export gas had been sold off without getting any benefit from it, and I don’t think they’re happy about it.”
