Australia's Defense Minister Andrew Hastie has opened the door to a 25% tax on gas company profits, declaring that multinational energy corporations have "had a really good run" on Australian wealth, The Guardian reports.
In remarkably blunt language for a senior government minister, Hastie signaled support for significantly increasing taxation on gas producers amid the ongoing fuel crisis and public anger over energy costs.
"These multinationals have had a really good run on Australian wealth," Hastie said, adding that it was time to ensure Australians received a fairer share of profits from their own natural resources.
The comments represent a significant shift in rhetoric from the government, which has previously been cautious about imposing higher taxes on the energy sector. A 25% profit tax would bring Australia more in line with resource taxation regimes in countries like Norway, where the state captures a larger share of fossil fuel profits.
Mate, it's not often you hear a Defense Minister—traditionally one of the more conservative portfolios—talking about taxing multinational gas companies. But here we are. When even the military brass are saying the multinationals have had it too good, you know the political winds have shifted.
The gas industry has been under intense scrutiny as domestic prices surge while companies export vast quantities of liquefied natural gas overseas at premium prices. Critics have long argued that Australia is one of the world's largest gas exporters yet fails to secure adequate domestic supply or taxation revenue.
Industry groups predictably pushed back against the proposal, warning that higher taxes could discourage investment and reduce supply. But with voters furious about energy costs and the government's poll numbers sagging, Hastie's comments suggest the political calculation may finally be changing.
