Australia resource revenue gap: Australia’s $45bn resource revenue
The Greens say Australia is forgoing $45bn in tax from gas and mining exports while the government backs fossil fuel subsidies.
Key Takeaways
- Greens claim Australia loses $45bn in resource tax revenue annually
- Labor preparing gas reserve bill without stronger corporate taxation
- Tension between PM and treasurer over resource and industry policy
Australia is leaving tens of billions of dollars on the table by refusing to tax its mining and gas exports properly, according to the Greens, as the Labor government prepares new legislation to protect domestic gas supply, according to The Guardian.
The party claims the annual shortfall amounts to $45bn in resource revenue that could fund healthcare, housing and cost-of-living support, while the government simultaneously props up fossil fuel companies.
| Revenue shortfall claimed | $45bn annually from resources sector taxation |
|---|---|
| Companies cited | Santos, Woodside, Adani |
| Policy under debate | Labor's gas reserve legislation |
| Source | The Guardian, 14 October 2026 |
Why Labor is reluctant to raise resource taxes
Australia’s government is introducing a gas reserve bill that will require a portion of the country’s liquefied natural gas to stay domestic rather than all going to export markets. The Greens support the policy aim but say it does not go far enough: they want the government to make mining and gas companies pay a fairer share of the wealth they extract.
The government’s reluctance reflects a political calculation. Big resource companies employ tens of thousands and contribute substantially to federal and state budgets through existing taxes, royalties and investment. Raising rates risks pushback from industry and warnings of job losses or reduced exploration, a familiar dynamic in Australian politics where resource revenue cushions federal finances.
The Greens’ position is that this calculation ignores the public cost. Families are struggling with rent, food and healthcare bills while corporations like Santos, Woodside and Adani generate record profits from publicly owned mineral and gas reserves.
How do resource taxes work in Australia?
Companies operating mines and gas fields pay royalties to state governments based on the value or volume of what they extract. The federal government also collects tax on corporate profits. Some sectors, like iron ore, once had special taxes but many were scrapped. Unlike some other resource-rich nations, Australia does not consistently apply a single, high rate of taxation to extraction of its reserves. This fragmented system, the Greens argue, allows corporations to minimise their bill through accounting and negotiation with individual states.
The tension between the Prime Minister and Treasurer
Beyond the resource tax row sits a deeper friction within Labor. The Greens have alleged a pattern where the Prime Minister overrides his Treasurer in public, humiliating him and undermining his authority on economic matters.
The row touches on fundamental direction. A treasurer typically controls tax and spending policy; public disagreement signals cracks in the cabinet and suggests the Prime Minister lacks confidence in his finance minister or is willing to bypass him for political reasons. The Greens claim this pattern is damaging the relationship and eroding the institution of the role itself.
What the Greens are demanding
The party wants the government to tax resource companies at a rate high enough to capture what they call a “fair return” on publicly owned wealth. That money would fund public services rather than subsidise fossil fuel projects. The Greens also oppose the government’s support for gas industry infrastructure, seeing it as backing a declining energy source when renewables investment would serve Australia better long-term.
The $45bn figure represents the gap between current revenue and what the Greens believe a stronger tax regime would collect. Without access to the full legislative and fiscal detail in the original source, the mechanics of how they calculated it remain unclear, but it underscores the scale of their argument: substantial wealth is leaving Australia with limited public benefit.
The gas reserve bill is expected to pass parliament, but the Greens’ attack on resource taxation and the government’s relationship with industry signals this will remain a flashpoint in Australian politics as energy policy, cost of living and fiscal priorities collide.
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Originally reported by The Guardian. Facts verified; analysis and wording are Thewealthora’s own.
Sophia Bennett
Executive Editor, World
Sophia Bennett is Executive Editor of Thewealthora's World desk, which covers the stories outside the market pages that eventually end up on them: elections and policy shifts, energy and commodity supply, trade rules, conflict, and the slow events that reprice something months after they happen.
