Local roads and more doctors: What would Mid North Coast residents do with millions made from a tax on gas?

Matthew Cotter says the Australian government’s current tax on gas is “nowhere near where it should be”. 

The South West Rocks resident is one of many on the Mid North Coast backing the call for a 25 percent tax on the country’s gas exports that could generate $17 billion in revenue a year.

Advocates across the political spectrum say it's money that could be spent on things like fixing roads, bringing doctors to the region, and becoming more energy independent as a nation. 

The Mid North Coaster spoke to locals about the possible tax, and asked what the extra $348.9 million a week could do for local communities. 

How we got here: Australia is one of the biggest gas exporters in the world, but as it stands, the Australian government makes more money by taxing beer than it does from taxing the country’s gas exports. 

Local impact: Kempsey Shire resident and local business owner, Sam Preston, said he wants Australia to become energy independent “so we’re not beholden to something that's happening over the other side of the world.”

• “Possibly use the money to help us out with our energy…a better price than what we're exporting, really, and then we can use that to become a little bit more resilient,” Preston told the Mid North Coaster.

• Preston suggested extra revenue raised from increasing the tax on gas should trickle down to local governments for roads and infrastructure.

South West Rocks resident, Brad Ingram, said the government “definitely taxes our beer too much”, and agreed fixing local roads should be a priority, along with finding ways to bring more doctors to the area.

Regular visitor to the area, Warren Kuschert, said Australia is in “desperate need of revenue” which he’d like to see build more public housing and increase mental health support.

• “There are people who are struggling week to week. We want to see people who are in desperate need of aid being supported, because we’re not seeing that,” Kushert said.

What’s happened: The government currently taxes gas projects via the Petroleum Resource Rent Tax (PRRT). 

Critics say the tax is inadequate and not raising enough revenue, with politicians such as Liberal frontbencher Andrew Hastie and Independent Senator David Pocock saying Australians aren’t getting a fair return on the sale of gas. 

• The Australia Institute found Australians pay four times more in student loan repayments than gas companies pay PRRT.

Make them pay: Advocates say a minimum 25 percent tax on gas export revenue would raise approximately $17 billion per year for Australians, compared to the roughly $2 billion currently collected under the PRRT.

The Australia Institute’s research found that by not implementing a 25 percent tax on liquefied natural gas exports since July 2022, the government has missed out on more than $69 billion and counting.

What next: At the end of March, the federal government agreed to a Senate Inquiry into gas taxation. The inquiry is due to report its findings before the federal budget in May.

What they said: Greens Senator Steph Hodgins-May, who is leading the inquiry, has called the PRRT "woefully out of date” saying it was originally developed for the oil industry and didn’t take the gas industry into account.

• “The existing tax regulations are completely riddled with loopholes,” Senator Hodgins-May told the National Account. “These gas exporters, making billions, are paying less tax in exporting our gas than the nurses, retail workers and teachers.” 

The Senator said she wants to see the minimum 25 percent tax introduced in the next budget and the $17 billion per year raised in revenue invested in clean, secure energy here in Australia, rather than tied to an “unpredictable” global supply chain.

Thumbnail: (L-R)Matt Cotter and credit Unsplash.