Maritime Union of Australia. (2026, April 13). Taxation of Australian gas resources: Submission to the Senate Select Committee on the Taxation of Gas Resources
Australia’s framework for taxing gas exports is under review amid concerns it is failing to deliver a fair return to the public from the extraction of nationally owned resources.
This submission from the Maritime Union of Australia responds to the Senate Select Committee on the Taxation of Gas Resources, evaluating whether current arrangements, particularly the Petroleum Resource Rent Tax (PRRT), remain fit for purpose.
The submission argues that the current system erodes public returns across the full lifecycle of gas projects. It contends that PRRT receipts are low during production and further reduced over time through the deductibility and, in some cases, refundability of decommissioning costs, effectively shifting a portion of end‑of‑life liabilities onto the public.
This is compounded by parallel corporate tax provisions that allow decommissioning expenditure to be deducted regardless of PRRT liability, weakening the “polluter pays” principle and reducing the public benefit from resource extraction.
The MUA calls for three core reforms:
- Replace the PRRT with a simple 25% LNG export tax to deliver a predictable and transparent public return from gas exports
- Capture value across the full project lifecycle, ensuring tax settings are not eroded by deductions, credits and end‑of‑life offsets that shift costs to the public
- Align taxation reform with workforce outcomes, including reinvestment in jobs, infrastructure and training to ensure reform is durable and supported by communities.
Overall, the submission frames gas taxation reform as a structural reset linking fiscal policy, decommissioning liability and workforce stability, arguing that a simpler and enforceable system is required to restore public confidence and secure long‑term national benefit.