ACTU calls for overhaul of gas tax as windfall profits surge in light of global conflict

As the global conflict pushes energy prices higher, the Union urged the Federal Government to replace the existing Petroleum Resource Rent Tax (PRRT) with a 25% levy on liquefied natural gas (LNG) export revenues.

The Australian Council of Trade Unions (ACTU) is calling for working people to receive a "fair stake" in the windfall profits expected to flow to multinational oil and gas companies, arguing that billions in potential revenue are being lost as global energy prices surge.

In a statement released on 17 March 2026, the ACTU urged the Federal Government to replace the existing Petroleum Resource Rent Tax (PRRT) with a 25% levy on liquefied natural gas (LNG) export revenues.

The call comes as escalating conflict involving Iran drives oil and gas prices higher, placing additional pressure on households through rising fuel costs and broader inflation.

According to the ACTU, rising oil and gas prices will generate windfall profits for Australia’s major oil and gas exporters like Woodside and Santos. However, almost none of the windfall will flow through to working Australians because of the PRRT failure to properly tax gas exports.

Data cited by the ACTU suggests that while a 25% export levy could have generated AUD$17.1bn in the 2023–24 financial year, the PRRT raised less than AUD$1.5bn over the same period — under 9% of the projected amount.

ACTU President Michele O’Neil said the current situation risks repeating patterns seen during the Russia-Ukraine war, when energy companies recorded significant profits while households faced rising living costs.

“While working Australians are dealing with surging costs due to the war in Iran, giant gas corporations are set to make a killing off skyrocketing oil and gas prices,” she said, calling for urgent government action.

The ACTU argues reform is increasingly critical, adding that “the world’s biggest resource companies should not be seeing their coffers swell because of unchecked profiteering in a time of war.”

Under the proposed model, revenue from a 25% LNG export levy would be redirected to benefit Australians more directly, particularly during periods of global instability.

“The PRRT is badly broken and until it is fixed, Australians miss out on seeing the benefits that big business soaring profits are making from our country’s resources.”

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