Labor Pushes Gas Export Tax at National Conference July 21-24

Labor’s national conference in Adelaide this week will debate a clause endorsing a 25% tax on gas exports, marking a major push from the party’s left wing and union allies. Prime Minister Anthony Albanese shelved the idea in April during the Middle East conflict, citing risks to investment and global fuel security. The renewed pressure reflects union demands for higher resource taxation to fund cheaper power bills and social spending.

What the draft platform says about gas taxation

Labor’s draft National Platform includes a clause stating the party will ensure Australians receive a “fairer return” from natural resources through “appropriate taxation arrangements.” The ACTU and manufacturing unions have explicitly called for a 25% gas export tax. Assistant Immigration Minister Matt Thistlethwaite told Sky News the clause is “a draft proposal” that “hasn’t been adopted yet,” and that existing changes to the petroleum resource rent tax and a 20% gas reservation policy are “the only plans we have.”

Why the government backed away in April

Prime Minister Albanese confirmed in late April that the budget would “not undermine existing contracts on gas exports.” The government considered raising revenue from gas in the lead-up to the budget but decided against it when the war in the Middle East triggered a global scramble for liquid fuels. Treasurer Jim Chalmers sidestepped the question in a June 18 interview, saying gas taxation “is not something that we’ve been working on” without ruling it out entirely.

Union and backbench pressure intensifies

Former cabinet minister Ed Husic organised a pro-gas-tax town hall in his western Sydney electorate last week, featuring Australian Workers’ Union national secretary Paul Farrow and economist Richard Denniss. Husic intends to generate momentum for the new tax following the inclusion of the clause in the draft platform. The Australian Manufacturing Workers’ Union released a 32-page manifesto calling for higher gas taxes as part of a “working-class agenda” to fund free education, higher jobseeker payments, and nationalised aged care.

What happens at the conference

Labor’s three-day national conference runs Thursday to Sunday in Adelaide. While the National Platform lays out long-term policy goals, the federal caucus has the ultimate say on policies the government takes to an election. Greens Senator Steph Hodgins-May said the political debate has shifted, with a gas export tax now “not if but when.” Liberal Senator Maria Kovacic argued the draft clause already goes further than the Prime Minister’s stated position of no new taxes.

Final Thoughts

The conference vote signals deep internal division over resource taxation. While the Albanese government maintains it has no plans for a gas tax, the union-backed draft platform keeps the door open. For investors in energy stocks, the outcome will shape tax policy if Labor wins the next election.

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