Senate inquiry examines gas taxation amid dispute between industry representatives and political critics over proposed 25% export levy

Apr 24, 2026, 06:43

Introduction

A Senate inquiry into the taxation of gas companies held a hearing in Perth on Friday, during which executives from major fossil fuel firms and an industry lobby group faced questioning from Greens senators and an independent senator. The proceedings occurred against the backdrop of a campaign advocating for a 25% tax on gas exports.

Main Body

The inquiry, chaired by Greens Senator Steph Hodgins-May, heard testimony from representatives of Woodside and Chevron, as well as Samantha McCulloch, chief executive of the industry lobby group Australian Energy Producers. The hearing was described as cordial but included moments of tension as senators questioned the witnesses. The inquiry was convened following a campaign led by independent Senator David Pocock and The Australia Institute, which argues that the existing Petroleum Resource Rent Tax (PRRT) does not adequately compensate Australians for the extraction of natural resources. The campaign has proposed a 25% tax on gas export revenues. Industry representatives uniformly expressed opposition to the proposed new tax. Maggie McCourt, Chevron Australia’s finance general manager, stated that the company supports the PRRT because it incentivizes the capital-intensive and risk-based nature of the gas industry, and argued that alternative tax structures would discourage future investment. Graham Tiver, Woodside’s chief financial officer, noted that his company is already a significant taxpayer, paying approximately 44 cents of every dollar of profit in corporate tax and royalties. He reported that Woodside has paid over $22 billion in PRRT since its introduction, including $471 million in the previous year, and approximately $13.8 billion in total Australian taxes, royalties, and levies over the past four years. Senator Hodgins-May expressed displeasure regarding the absence of Woodside chief executive Liz Westcott and Chevron Australia managing director Balaji Krishnamurthy from the hearing. Kynan Scarr, Chevron’s asset development general manager, responded that McCourt was the company’s most senior finance and taxation professional, making her the appropriate representative for a hearing on taxation matters. The hearing also examined the companies’ political donations and lobbying activities. Senator Hodgins-May inquired whether the companies had obtained tickets to Treasurer Jim Chalmers’ upcoming budget night dinner and whether they had lobbied Chalmers, Prime Minister Anthony Albanese, or Western Australian Premier Roger Cook regarding the proposed 25% gas tax. These questions were taken on notice. Senator Pocock questioned the witnesses about lobbyist sponsorship passes that grant access to Parliament House. Both companies and McCulloch confirmed they held such passes. McCulloch stated she possessed a pass but could not recall which member of parliament had sponsored her. Reports indicate that Prime Minister Albanese is unlikely to pursue the 25% tax in the May budget, a development that appears to diminish Senator Pocock’s prospects for the proposal. The campaign, which gained traction on social media, claims the Commonwealth could generate up to $17 billion annually by requiring multinational gas exporters to pay a higher share for the nation’s finite resources. However, recent geopolitical events, including an oil price shock and the closure of the Strait of Hormuz—which affects one-fifth of the global crude oil supply—have prompted Albanese to engage with oil refining companies to secure Australia’s fuel supplies. He also provided assurances that liquefied natural gas (LNG) supplies to those countries would not be affected. Western Australian Premier Roger Cook explicitly stated his opposition to the proposed tax, arguing that it would not benefit the state. He emphasized the need for a stable investment environment to attract the long-term capital required for gas projects that deliver prosperity over decades. The inquiry is scheduled to report its findings next month.

Conclusion

The Senate inquiry into gas company taxation has highlighted a clear division between industry representatives, who argue that a new tax would deter investment, and political critics, who contend that the current tax regime does not adequately compensate the public. The proposal for a 25% export tax appears unlikely to be adopted in the upcoming federal budget, and the inquiry is expected to deliver its report next month.

Vocabulary Learning

cordial
Polite and friendly, without any open conflict友善而禮貌的，沒有公開衝突
Example:The hearing was described as cordial but included moments of tension as senators questioned the witnesses.
finite resources
Natural resources that exist in limited amounts and cannot be replaced quickly有限的自然資源，數量有限且無法快速補充
Example:The campaign claims the Commonwealth could generate up to $17 billion annually by requiring multinational gas exporters to pay a higher share for the nation’s finite resources.
incentivizes
Provides a reason or motivation to do something提供誘因或動機去做某事
Example:Chevron Australia’s finance general manager stated that the company supports the PRRT because it incentivizes the capital-intensive and risk-based nature of the gas industry.
lobbying
The activity of trying to persuade politicians or officials to make decisions in your favor遊說活動，試圖說服政治人物或官員做出對自己有利的決定
Example:The hearing also examined the companies’ political donations and lobbying activities.
traction
The extent to which an idea, product, or campaign becomes popular or gains support某個想法、產品或運動獲得歡迎或支持的程度
Example:The campaign, which gained traction on social media, claims the Commonwealth could generate up to $17 billion annually.

Sentence Learning

The inquiry, chaired by Greens Senator Steph Hodgins-May, heard testimony from representatives of Woodside and Chevron, as well as Samantha McCulloch, chief executive of the industry lobby group Australian Energy Producers.
Use of a non-defining relative clause (chaired by...) to add extra information about the inquiry.使用非限制性關係從句（chaired by...）為查詢提供額外資訊。
The inquiry was convened following a campaign led by independent Senator David Pocock and The Australia Institute, which argues that the existing Petroleum Resource Rent Tax (PRRT) does not adequately compensate Australians for the extraction of natural resources.
Passive voice (was convened) to focus on the action, and a defining relative clause (which argues...) to specify the campaign's purpose.被動語態（was convened）聚焦於行動，並用限制性關係從句（which argues...）說明運動的目的。
Maggie McCourt, Chevron Australia’s finance general manager, stated that the company supports the PRRT because it incentivizes the capital-intensive and risk-based nature of the gas industry, and argued that alternative tax structures would discourage future investment.
Use of 'because' to show cause and effect, and parallel verb structures (stated... and argued) to present two related points clearly.使用「because」表示因果關係，並用平行動詞結構（stated... and argued）清晰呈現兩個相關觀點。
However, recent geopolitical events, including an oil price shock and the closure of the Strait of Hormuz—which affects one-fifth of the global crude oil supply—have prompted Albanese to engage with oil refining companies to secure Australia’s fuel supplies.
Use of 'However' to introduce contrast, and a non-defining relative clause (which affects...) to add important context about the Strait of Hormuz.使用「However」引入對比，並用非限制性關係從句（which affects...）補充霍爾木茲海峽的重要背景。
He emphasized the need for a stable investment environment to attract the long-term capital required for gas projects that deliver prosperity over decades.
Use of a defining relative clause (that deliver prosperity over decades) to specify which gas projects are being discussed, and an infinitive of purpose (to attract...).使用限制性關係從句（that deliver prosperity over decades）指明所討論的天然氣項目，並用不定式表示目的（to attract...）。