Australia’s Gas Giveaway: Who Really Profits from Our Resources?
Australia is one of the world’s largest producers of natural gas, but you wouldn’t know it by looking at what everyday Australians get in return.
While multinational corporations rake in billions, Australian taxpayers are left with next to nothing. Our gas, our land, our future are handed over…largely for free.
Who’s Really Winning?
80% of Our Gas Is Shipped Overseas
Most of Australia’s gas is exported as liquefied natural gas (LNG), and 90% of WA’s exported gas is controlled by foreign-owned companies. Corporations such as US-based Tamboran have been granted highly favourable deals that offer them extensive access to Australia’s gas resources.
$149 Billion of Gas, Given Away for Free
More than half — 56% — of exported gas attracts zero royalty payments. That means multinationals have made $149 billion in profit over just four years from gas they acquired for free. In the Northern Territory alone, $37 billion worth of gas has been handed over with nothing returned to the public.
Artificial Shortages = Higher Prices for You
Producers are accused of strategically withholding supply to drive up prices. Even when new gas fields are approved, they may delay bringing extra gas to market — not because of demand, but to protect profits.
Less Tax Than Beer
The biggest gas players — Chevron, Exxon, Woodside, Shell — together pay less in federal tax than Australians pay in beer excise. Some even shift operations to secrecy jurisdictions like Delaware in the US, avoiding scrutiny while profiting from our national wealth.
Deals Behind Closed Doors
The Northern Territory government gave Tamboran rights to frack the Beetaloo Basin without any competitive tender. No bidding, no transparency — and potentially $1 billion handed over without public oversight.
And What Do Aussies Get?
Sky-High Gas Bills
Despite being awash in gas, Australians pay up to $173 per gigajoule, while Americans pay just $2.50 for their own fracked gas. The ACCC has repeatedly warned that Australians are treated as “second-class citizens” by our own gas industry.
Lost Billions in Public Revenue
If even modest royalties had been charged on gas exports, Australia could have raised $13.3 billion — enough to invest in schools, hospitals, renewable energy, and cost-of-living relief.
In the NT, not a single dollar in royalties has been collected from the $37 billion given away. WA’s gas royalties are so low that vehicle registration brings in more money.
Few Jobs, High Costs
Gas is not a major employer — just 0.2% of the national workforce. And in a time of skilled labour shortages, gas expansion may pull workers away from other industries rather than create new opportunities.
A Nation in Debt, While Norway Gets Rich
Norway taxed its oil wealth and built a $1.7 trillion sovereign wealth fund. Meanwhile, Australia has $900 billion in public debt and no lasting legacy from its gas boom. We could be using this wealth to fund universal dental care, healthcare, free university — even slash your power bills.
Environmental Damage and Cleanup Costs
Fracking puts water sources, farmland, and local communities at risk. When the industry walks away, it’s likely taxpayers who will be left with massive cleanup bills — unless we act now.
Environmental Damage and Cleanup Costs
Efforts to help households switch to efficient electric appliances — which could save $6.3 billion over 10 years — have been shut down after aggressive lobbying by the gas industry.
Politics Too Close to Profit
There are cases of former ministers joining gas companies soon after approving major projects — and others failing to declare their shareholdings in resource firms. Australians are right to be concerned about conflicts of interest and influence peddling.
The Commonwealth Gas Market Review
The Gas Market Review is being conducted by the Australian Government to assess how well Australia’s gas market is functioning. Submissions can be made via the Department of Climate Change, Energy, the Environment and Water’s (DCCEEW) Consultation Hub. Submissions close on 15 August 2025.
The main goal is to ensure Australian homes and businesses have enough affordable gas and that the market supports the country’s move toward lower emissions and cleaner energy.
Potential Gas Market Changes from the Review Include:
- Improving Gas Supply: Clearer rules and possibly a new national system to approve LNG exports, ensuring enough supply for Australians first.
- Fairer Contracting: Centralising gas offers, simplifying negotiations, and introducing standard contract templates to level the playing field.
- Greater Market Transparency: Real-time pricing, centralised data access, and a stronger Gas Bulletin Board.
- Price Adjustments: Reviewing or changing the $12/GJ cap, making it flexible, or removing it entirely under a new system.
- Market Efficiency: Encouraging more structured trading, possibly through mandatory market-making schemes or standard rules across trading hubs.
A Good Start — But Is It Enough?
This review is a much-needed opportunity to fix past mistakes, stop artificial shortages, and ensure Australia’s gas benefits Australians — not just exporters.
The Government deserves credit for starting this process. But it must also confront the gas industry’s failure to pay fair tax and deliver public value.
What Can Australians Do?
We have the power to demand that our natural wealth serves us — not just overseas companies and shareholders. You can:
- Contact your federal MP and senators to support stronger royalty and tax frameworks.
- Sign and share petitions for fair gas pricing (e.g., on Change.org or through the Australia Institute).
- Support independent and crossbench candidates who prioritise transparency and public interest.
- Attend or host forums to raise awareness and take action.
- Back policies that cut gas use — like household electrification and renewable energy programs.
- Write submissions to government reviews on gas, energy, or economic reform.
Australia’s gas belongs to its people. With better laws and oversight, we can stop giving it away — and start building a fairer, cleaner energy future.
References and further reading:
https://consult.dcceew.gov.au/gas-market-review-consultation