Gas tax: How beer fuelled a debate on Australia's energy giants

Key developments are emerging from the global stage. Gas tax: How beer fuelled a debate on Australia's energy giants18 minutes ago Share Save Add as preferred on GoogleHelen LivingstoneSydneyGettyAustralia makes more money from beer excise than its tax on offshore gas exports. Back in February, an otherwise dry senate hearing took an unexpected turn when a flustered treasury official confirmed a little known fact: Australia gets more tax from beer than gas exports. "How do we live in a country, one of the biggest gas exporters in the world, and we're getting more tax from beer?

" independent Senator David Pocock asked in a moment that has since received almost 10 million views on Instagram. The viral video gave fresh fuel to a campaign for Australia to introduce a 25% tax on gas exports, which has sparked a counter-campaign from energy companies strongly opposed to the tax. Despite the campaign's popularity with voters, the prime minister has ruled it out.

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However, as the country grapples with soaring cost-of-living and domestic gas prices amid a fuel crisis triggered by the US-Israeli war on Iran, the subject is unlikely to go away - and is dominating headlines ahead of next week's federal budget. 'A dud deal'"Just do it and stop the crap," former treasury secretary Dr Ken Henry told another senate hearing last month. His words had weight.

Sixteen years ago, Dr Henry proposed a mining tax that was defeated after a campaign by the mining industry. Had the government succeeded in implementing such a tax back then, Henry argued, Australia would have earned tens of billions of dollars by now and the money could have been used to build a fund for future generations. He described Australia's taxes on its gas industry as such:"Imagine if I were to come to you … and put this proposition to you: I'll sell your house and I'll give you 30% and I'll keep the other 70%, and you should be happy with that because I've just converted an asset into cash.

None of you would be stupid enough to do that. "Japan makes more revenue from Australian gas - by taxing imports - than Australia itself does, according to progressive public policy think tank the Australia Institute. It estimates that a 25% tax on gas exports would raise A$17bn (£9bn, US$12) a year.

GettySenator David Pocock (second from left) with Konrad Benjamin (second from right) have campaigned for a 25% tax on gas exportsArguments such as these have increasingly caught the attention of Australians. According to one poll last week, 57% of voters are in favour of a tax on gas exports, with only 12% opposed. Headlines over the past year have made repeated references to Norway's US$2tn sovereign wealth fund, with envious Australians decrying their government's lack of foresight in building a fund that could pay for more generous parental leave, free tertiary education and healthcare, for example.

The development has drawn wide international attention, with diplomatic circles watching closely.