A political commentator and former economics teacher has criticized Australia’s government and gas sector for allowing corporations to take valuable liquefied natural gas (LNG) resources with minimal taxation, effectively giving them away for free.

Current Tax System Falls Short

Konrad Benjamin, who operates Punters Politics, testified before a Senate committee on the taxation of gas resources. He highlighted the Petroleum Resource Rent Tax (PRRT), which levies 40 percent on profits from gas extraction. These profits can be reduced by capital expenditures and other deductions, resulting in just $1.5 billion collected in 2025.

This figure is lower than beer excise revenue of $2.7 billion and less than the $1.8 billion Japan gathers annually from taxes on Australian gas imports, according to recent analysis.

Senate Hearing Revelations

Benjamin argued the system fails the public test, especially amid national debt and strained services. “We’re told every day, ‘Oh we can’t afford to invest in schools, our medical system is under strain,'” he told the Select Committee on the Taxation of Gas Resources. “Except when we look at what we are as a nation, lots of resources that we all collectively own, we know it not to be true. We’ve been sold out.”

The committee learned the government could have raised an additional $63 billion since 2022 with a proposed royalty on top of the PRRT, equating to about $17 billion yearly or $350 million weekly.

Former Treasury secretary Ken Henry described the current regime as inadequate. “People will say, in respect of the taxation of gas, that the Petroleum Resource Rent Tax does a bit, and it’s true. But that’s the point. It does such a tiny bit that anybody should be embarrassed to use that as an argument for not changing arrangements,” he stated. Australians have endured this for decades without fair benefits from gas exports.

Economist Richard Denniss from the Australia Institute noted, “No one doubts that the gas industry makes really large profits but Australians now doubt that they are getting a fair share for that.” He called exporting resources cheaply to foreign firms “the Australian way.”

Norway Offers a Better Model

Benjamin pointed to Norway, which exports less gas than Australia yet funds superior living standards through robust social programs. Norway imposes a 56 percent special tax on oil and gas, plus 22 percent corporate tax, and holds majority stakes in production. Revenues feed a $3 trillion sovereign wealth fund, now diversified beyond energy.

“The question we punters have is – how are we holding all of the cards, yet still be losing?” Benjamin asked. “We understand that Australia’s gas is incredibly valuable. We understand that we’re giving most of it away, for free, to foreign corporations. We understand that those same corporations pay bugger all tax.”

Industry Concerns and Rebuttals

Gas companies warn higher taxes could raise domestic prices. Denniss countered using Norway: “There’s no Norway premium for Norwegian gas, which is heavily taxed. All of the gas is selling at the same world price.” A royalty could boost domestic supply and lower prices by taxing exports.

The Senate committee continues examining these issues ahead of the federal budget in May.