Australian Senate Inquiry Requests Evidence from Gas Company Executives on Export Tax Settings

Chief executives from several major resources companies have been requested to give evidence in sessions scheduled for Canberra and Perth later this month. The companies include Santos, Woodside, Chevron, Shell, Inpex, and ConocoPhillips.

Under Senate rules, attendance can be compelled if the executives do not appear voluntarily. The inquiry examines potential changes to taxation amid elevated global fuel prices resulting from the US and Israel-led war against Iran. Labor, the governing party, faces calls to implement a 25% tax on gas exports.

Labor supported the creation of the inquiry after reports indicated that the prime minister's department had requested Treasury to model the impacts of a flat tax on gas exports, along with modifications to the petroleum resource rent tax and corporate income tax rules.

Supporters of the 25% tax, including unions, social service groups, and crossbench parliamentarians such as David Pocock, state that it could generate up to $17 billion in additional budget revenue.

Inquiry Details and Invitations The committee chair, Greens senator Steph Hodgins-May, sent invitations to the chief executives on Monday.

The committee also requested evidence from ambassadors of Australia's key energy partners in the region, including Malaysia, Singapore, South Korea, and Japan. Labor has emphasized that it will not risk existing export contracts with Asian countries.

The party maintains that Australia is a reliable export partner and expects similar reliability from importing nations. The inquiry sessions are set ahead of the federal budget on May 12.

Broader Context and Positions The Greens party has highlighted the need for the companies to address their tax contributions publicly.

Separately, the Greens Institute, led by former MP Max Chandler-Mather, released research estimating that major gas exporters could achieve profits exceeding $78 billion in 2026 due to the ongoing war. The research compares Australia's tax regime to Norway's and suggests that new windfall profit taxes could raise between $28 billion and $57 billion.

Chandler-Mather proposed a 50% tax rate on gas exports in the research.

He stated that a rate below 25% would indicate prioritization of corporate profits over household energy costs. The prime minister, Anthony Albanese, addressed questions on gas tax changes on Monday but deferred comment to the upcoming budget. Albanese has engaged in regional diplomacy related to fuel supplies, including a visit to Singapore last week and planned trips to Brunei and Malaysia starting Tuesday.

Last month, International Energy Agency executive director Fatih Birol advised against abrupt changes to corporate tax rates, noting potential impacts on investor confidence. The global fuel shock has led to the closure of the Strait of Hormuz, affecting fuel imports into Australia and prompting efforts to secure alternative supplies.

The inquiry provides a platform to assess tax policies in the context of international energy dynamics and domestic budget needs.

Stakeholders, including industry representatives and policymakers, continue to discuss the balance between revenue generation and maintaining export reliability.