Gas export tax would help to fix Australia's energy crisis, says Dr Ken Henry
ABCThe dire state of Australia's domestic electricity market, and our lack of investment in renewables, has been a mess of our own making, former Treasury secretary Ken Henry has said. Key points: A "gas export windfall tax" would pull Australia's domestic gas prices back down The tax rate on windfall profits could be 100 per cent It would also help the economy transition to renewable energy Australia has also squandered its opportunity to use its huge domestic gas reserves as a transitional fuel to shift our electricity system away from a heavy reliance on coal to renewables, he says. Dr Henry said Australia's political leaders blew their opportunity to have more control over Australia's gas fields to help us transition our energy system to renewable energy. Meanwhile, gas prices on Australia's east coast have been deliberately linked to global gas prices — with no reservation policy for Australian households — and multinationals are making extraordinary profits exporting our gas overseas. "Given where we are now, I do think a gas export windfall tax would be the most effective way to reduce the domestic price below the world price," he said. "
History of this topic
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ABCHow your spiking energy bills are making foreign investors rich
ABCAustralia's gas crisis is worse than you might think. Industries warn thousands could lose their jobs and consumers will pay more
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