Australia Weighs LNG Windfall Tax as World Faces Soaring Prices

Article content(Bloomberg) — Prime Minister Anthony Albanese has asked Australia’s Treasury to look into imposing a windfall tax on the country’s vast liquefied natural gas industry, to capitalize on soaring prices of the fuel. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe request for modeling was confirmed by Energy Minister Chris Bowen at a press conference on Friday, though he did not provide further details as it is a confidential cabinet process.

The Australian Broadcasting Corp. reported the modeling request earlier the same day. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentGlobal prices of LNG have surged due to supply disruptions caused by the war in the Middle East. The critical Ras Laffan LNG hub in Qatar, which provides about a fifth of global exports, sustained extensive damage in an Iranian missile attack this week and may take years to repair. Meanwhile, cargoes remain trapped as the Strait of Hormuz remains effectively closed. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentAustralia was the world’s third-largest LNG exporter last year, shipping nearly 80 million tons worth A$65 billion ($46 billion) in the year through June 2025, mainly to Japan, South Korea and China. The oil and gas industry paid about A$22 billion in taxes and royalties over 2024 to 2025, according to industry lobby, Australian Energy Producers.Article contentThe group warned that higher taxes would deter investment in new gas supply, lead to shortfalls in the domestic market, and inflict pain on households at a time when inflation is already high. Article contentImposing a windfall tax would “leave Australia more exposed to future energy shocks,” said Samantha McCulloch, the lobby’s chief executive officer. “While international gas prices have surged, Australian gas prices remain relatively low, and the market is well-supplied.” Article contentIn Europe, Germany’s Finance Ministry is also considering a windfall tax on energy companies to capture a share of higher profits driven by the war. Authorities are examining an excess-profit levy to fund consumer relief, a government official said on condition of anonymity.Article contentMeanwhile, the UK has backtracked on plans to scrap its controversial windfall tax on offshore oil and gas producers due to the war.Article contentTrending Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas Posthaste: Canada sets two new population records as 'demographic engine' backfires News Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate William Watson: Some surprising numbers on wealth and home ownership FP Comment Most Canadians have yet to file taxes, CRA data show. Here are five tips to get you going Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas Posthaste: Canada sets two new population records as 'demographic engine' backfires News Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate William Watson: Some surprising numbers on wealth and home ownership FP Comment Most Canadians have yet to file taxes, CRA data show. Here are five tips to get you going Personal Finance