A tax hike on gas resources would threaten Western Australian industry and drive-up costs for households, CCIWA has warned.
A Federal parliamentary inquiry examining Australia’s tax settings for gas is holding hearings in Perth today, amid calls for an additional 25% tax on oil and gas projects.
In its submission to the inquiry, CCIWA reinforced that a higher tax on gas would jeopardise the stability of gas supplies in the future.
CCIWA Chief Economist, Dr Daniel Kiely, said Australia needs gas tax settings that deliver fairness, without driving investment away.
“We need to strike the right balance between ensuring Australians receive a fair return on our natural resources and keeping investment,” he said.
“Long-term energy projects need a stable economic and regulatory environment. Changing the rules mid-game undermines confidence in Australia’s investment landscape.”
Dr Kiely said a secure gas supply was central to WA’s mining, manufacturing, chemical and clean energy sectors.
“Gas underpins a significant number of processes across WA’s broad industrial sectors,” he said.
“Any additional cost through a tax hike would make Australia a less attractive place to invest, jeopardising investment in new gas projects and driving up costs for existing customers.
“Given the global energy crunch being caused by the Middle East conflict, Australia’s access to abundant and relatively affordable gas is more important than ever.”
Last year, a CCIWA report found a gas shortage in WA would slash $42 billion from the economy and cut up to 45,000 jobs.
Gas is also critical to domestic electricity supplies, helping to keep the lights on during heatwaves and other weather events.
Dr Kiely said a gas tax increase would flow through to households.
“A tax on gas exports is a tax on domestic energy,” he said.
“Gas is a fundamental part of WA’s energy grid, particularly for our manufacturing sector, and will continue to be vital for the energy transition away from coal.”
