Albanese Asks Treasury for Windfall Tax as LNG Exports Soar

Australia's Prime Minister Anthony Albanese has asked the Treasury to model options for a tax on windfall gas profits, according to the Australian Broadcasting Corporation. The move comes as the country's LNG exports are expected to soar this year due to disruptions in oil and gas trade from the US-Israeli war on Iran and the closure of the Strait of Hormuz.

Asia spot LNG prices have doubled since the US and Israel attacked Iran in February, with Australia's export shipments set to surge. The country's top gas lobby, Australian Energy Producers, has warned that a new tax would stop investment in new supply and lead to even higher energy prices.

Australia is already struggling to compete for investment in gas supply projects due to regulatory uncertainty, high taxes, approval delays, and activism, according to Samantha McCulloch, CEO of the producer group. The government has previously increased the Petroleum Resources Rent Tax, which captures profits from offshore oil and gas projects, raising an additional A$2 billion.