From rigs to roads: What would eastern suburbs residents do with millions made from a tax on gas?

Doncaster East resident Andrew says the Australian government’s current tax on gas exports is “very far behind” the rest of the world.

He’s one of many eastern suburbs locals backing growing calls for a 25 percent tax on the country’s gas exports that could generate $17 billion in revenue a year.

Advocates across the political spectrum say the money could be spent on things like fixing roads, upgrading hospitals and becoming less dependent on foreign energy sources.

The Eastern Melburnian spoke to locals about the proposed levy, asking them what the extra $348.9 million a week could do for local communities.

🪙 State of play: Australia’s gas exports account for a fifth of the global market.

• The Federal Government taxes gas export projects via the Petroleum Resource Rent Tax (PRRT) – a profits-based levy which collects about $1.5 billion a year.

• In contrast, the 2025-26 beer excise is expected to bring in $2.7 billion.

• According to modelling from the Australia Institute, a 25 percent flat tax would raise $348.9 million a week or $17 billion a year.

🧑‍🍼 Parental pressures: Warrandyte resident David Rush, 71, said young families undergoing financial hardship should be the primary recipients of any potential tax revenue.

• 🗣️ "I think, currently, the gas is probably sold too cheaply overseas,” said Rush. “People with young families, they get no concessions at all.”

🔨 Home improvement: Balwyn North resident Karen said the surplus wealth should go back into Australia’s infrastructure as needed, including building more oil refineries or upgrading hospitals and schools, arguing Australians should come first.

• 🗣️ “We're virtually giving it away and we don't have enough in this country,” said Karen.

💰 Losing out: Doncaster East resident Andrew said the money should be spent on fixing local roads, education and health networks.

• 🗣️ “When we look around the world at what other countries have done with their fossil fuels and income from them, we are very far behind,” Andrew told the Eastern Melburnian.

✍️ Rule shifts: Labor Chisholm MP Dr Carina Garland said while she believes “Australians deserve a fair return from the natural resources they own”, she stopped short of supporting the call for a 25 percent levy, instead highlighting recent changes to the PRRT have meant offshore gas companies pay more tax sooner.

⏭️ What’s next? On March 30, the Senate agreed to launch an inquiry into gas taxation, which is due to report back on May 7, only five days before the federal budget on Tuesday May 12.

• Greens Senator for Victoria and inquiry chair Steph Hodgins-May spoke with the National Account recently, saying Australians should reap the rewards of gas exports.

• 🗣️ “Our modelling shows that from January to April this year, every Australian would be $400 better off if we taxed gas properly,” said Hodgins-May.

Thumbnail Image Credit: Ken Hodge/Flickr