Page 11 - AsiaElec Week 46 2022

AsiaElec POLICY AsiaElec

Australian government

rules out windfall tax on

gas, coal profits

AUSTRALIA AUSTRALIAN Prime Minister Anthony affect supply.
Albanese said on November 11 that his gov- “We have contracts with other nations for
ernment would consider all steps to curb high supply. We don’t intend, of course, to interfere
energy prices including a price cap, but did with any of that. So that limits what options are
not consider a tax on mining companies as an on the table,” he said.
option. The EU and the UK have already imposed
In the budget it released last month, Austral- windfall taxes on oil and gas company profits,
ia’s Labour government predicted that house- and US President Joe Biden has also threatened
hold gas and electricity prices would climb by to impose one if producers do not cut their costs,
20-30% over both of the next two years, in part although such a measure would be unlikely to be
because of the global energy crunch that has supported in the US Congress.
been exacerbated by Russia’s war in Ukraine. Australia’s government has come under pres-
“Look, [a price cap on gas] is one of the sure from a broad coalition of economists, union
options that is under consideration,” Albanese leaders and progressive politicians to introduce a
told radio station 2GB on November 11. windfall tax – a measure that the Australia Insti-
There have been mounting calls in Australia tute estimates could raise up to $40bn in revenue
for a windfall tax to be imposed on the record for the federal budget. The same institute pro-
profits that coal miners and gas producers jects that the value of LNG exports from Aus-
have made on the back of the energy crisis. But tralia rose from $30.5bn in 2020-21 to $70.2bn
Albanese said that there were no such plans in 2021-22.
under discussion in government. The Labour government had passed laws in
“I’m not quite sure what a mining tax is 2012 for a 30% tax on iron ore and coal mine
besides a slogan,” he said, stressing that the income, but they were reversed two years later
government would avoid measures that would by the conservative coalition government.™

Week 46 15•November•2022 www. NEWSBASE .com P11