Canberra – A Senate inquiry into the taxation of offshore gas exports is set to proceed after ACT Independent Senator David Pocock secured sufficient support for his motion, despite opposition from the Labor government and a notable absence from the Coalition benches. The inquiry, proposed under the title “Select Committee on Why Gas Companies Pay Less for Offshore Liquid Natural Gas than Australians Pay in Beer Excise,” will examine the comparatively low revenue generated by the Petroleum Resource Rent Tax (PRRT) on liquefied natural gas (LNG).
The motion, debated on March 13, 2026, passed with the support of independents, the Greens, and One Nation, highlighting a fracturing of traditional political lines on energy policy. The Canberra Times reported that the Coalition, led by new Nationals leader Matt Canavan, did not participate in the vote.
Senator Pocock has repeatedly argued that Australia is not receiving a fair return from its vast gas resources. He highlighted in a February Senate estimates hearing, as reported by MacroBusiness, that revenue from beer excise currently exceeds that generated by the PRRT. “We get one chance to capture the benefits of the LNG boom and invest in the things Australians necessitate most: housing, health, education,” Senator Pocock stated in a press release issued March 2nd, 2026. He further contrasted Australia’s returns with Norway’s sovereign wealth fund, built on gas revenues.
The inquiry will investigate the amount of PRRT paid on LNG, comparing it to taxation regimes in other major gas exporting nations such as Norway and Qatar. It will also examine the Australian Council of Trade Union’s proposal for a 25% tax on gas export revenue. According to Senator Pocock’s proposal, the committee will deliver its report in May 2026.
The move comes amid growing scrutiny of gas company profits and their impact on Australian energy prices. The Guardian reported on March 13th that the Australian Government has directed the departure of non-essential Australian officials posted to Israel and the UAE, due to the deteriorating security situation. While not directly linked to the gas tax debate, this decision underscores the broader geopolitical factors influencing energy markets.
The inquiry’s scope extends to the impact of rising gas prices on Australian businesses and households since 2016, and potential uses for increased revenue generated through more effective taxation of the offshore LNG industry. The outcome of the inquiry and any subsequent legislative changes remain uncertain, with the Labor government having voted against initiating the investigation.
