David Pocock proposes inquiry into petroleum resource rent tax

Senator David Pocock has called for a Senate inquiry examining the amount of petroleum resource rent tax (PRRT) currently paid on liquified natural gas (LNG) and how it compares with other jurisdictions such as Norway and Qatar.

In a statement issued on Monday (2 March), Pocock said he would table a motion in the Senate to establish a special Senate committee to oversee the inquiry. The Senate is scheduled to vote on the motion on 10 March.

Senator Pocock has proposed a committee comprising six senators, including two from Labor, two from the Coalition and one crossbench senator, alongside himself as chair.

The inquiry would also examine a policy proposal from the Australian Council of Trade Unions for a 25 per cent tax on gas export revenue. In addition, it will also look at how increases in gas prices since 2016 have impacted Australian businesses and households and what could be done with the additional revenue generated by effectively taxing the offshore LNG industry.

Under the senator's proposal, the committee would present its final report by 11 May 2026, before the federal budget on 12 May.

In a public statement, Pocock said Australians had had enough of multinational gas companies profiting off their resources without providing a fair return.

“We get one chance to capture the benefits of the LNG boom and invest in the things Australians need most: housing, health, education,” he said.

“Currently we are squandering what Norway has turned into a $3 trillion dollar sovereign wealth fund."

Pocock said governments of all political persuasions have emphasised that budgets are about priorities and asking for solutions.

"This proposal ticks both boxes."

“I call on the major parties to stand up for what the people they’ve been elected to represent want to see and that’s big companies paying more to export our gas than Australians pay on beer excise.”