At first glance, a “gas export levy” might sound like the kind of policy that belongs in parliament debates or think tank reports. But beneath the jargon lies something simple—and surprisingly relevant: a plan that could help ease your energy bills, redirect billions into public housing, and make life a little more affordable for everyday Australians.
What’s the Gas Export Levy—and Why Does It Matter to You?
The Australian Council of Trade Unions (ACTU) recently proposed a 25% tax on the profits made from exporting gas. You can read the full coverage via The Australia Institute, which analysed how this idea could play out if adopted by the federal government.
Now here’s why this matters: Australia is one of the world’s largest gas exporters. Yet, we collect far less revenue from our gas sector compared to other resource-rich nations. Most of the profit goes offshore, while Australian households continue to deal with rising energy costs at home.
The ACTU argues that by fairly taxing the export windfalls of gas giants, the government could raise about $4.7 billion per year—without touching regular consumers. This isn’t about taxing households—it’s about better sharing the value of our natural resources.
Lower Bills? The Modelling Says Yes
One of the most direct impacts of this proposal would be on energy prices. According to economic modelling by Oxford Economics Australia, implementing the levy would put downward pressure on gas prices for domestic users. In real terms, households could see:
- Gas bills drop by up to 7%
- Electricity bills fall by around 3%
While these percentages may seem modest, they stack up over time—especially for families already stretching every dollar. A drop in quarterly bills could translate to better budgeting, less financial stress, and maybe even a bit more breathing room at the checkout counter.
Beyond Bills: A Boost in Housing and Public Spending
The proposal also outlines how this $4.7 billion could be reinvested into areas where Australians are really feeling the pinch. The modelling suggests that the government could triple current spending on public housing. That means more affordable rentals, fewer people on housing waitlists, and less strain on overstretched renters.
Even beyond housing, there’s scope for investment in public infrastructure—like education, healthcare, and transport—areas that help reduce out-of-pocket expenses in daily life. The kind of relief that adds up quietly but significantly over the long term.
A Fairer Share from a Resource-Rich Nation
For decades, Australians have been told that natural resource exports are good for the economy—and in many ways, they are. But the ACTU’s proposal asks a bigger question: Are we getting a fair return? Currently, many multinational gas companies pay little to no corporate tax, partly due to generous deductions and loopholes in the Petroleum Resource Rent Tax (PRRT).
Meanwhile, domestic gas prices have soared in recent years—putting pressure on households and businesses alike. If a share of export profits were redirected to help Australian families, that would be a shift toward a more balanced equation.
What You Can Do While Policy Catches Up
Whether or not the gas levy becomes reality anytime soon, there are still ways you can take charge of your household budget—especially when it comes to energy and essentials. At Select N Save, our mission is simple: help Aussies find smarter ways to save. So while the policymakers debate gas taxes, here’s what you can do today:
- Review Your Recent Energy Bills: Many households stick with outdated plans and end up overpaying.
- Look Out for Discounts or Rebates: You may already be eligible for many rebates or discounts. These are often missed due to a lack of awareness.
- Reduce Energy Waste at Home: Even simple habits like switching to LED lights, turning off unused appliances, or adjusting air conditioning settings can lower costs.
Select N Save helps break down what’s happening in Australia’s energy and economic landscape, translating it into practical tips and tools that make your everyday living more affordable.
Every Dollar Counts—And We’re Here to Help You Save It
Policy change might take time, but smarter living doesn’t have to wait. Whether it’s saving on your power bill, stretching your grocery budget, or finding small wins around the house, Select N Save is here to help Australians live better for less. Read more blogs published on our website and explore our latest savings tips, updates, and practical guides. Contact us to compare and switch your energy, gas, and broadband providers to optimise your monthly utility expenses.