this post was submitted on 20 Oct 2025
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Health funding is one of our trickiest issues – here’s a politically sweet fix (australiainstitute.org.au)
submitted 1 month ago* (last edited 1 month ago) by HalfEarthMedic@slrpnk.net to c/australia@aussie.zone
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The GST was created as a state tax, collected by the Commonwealth government, but then transferred in full to the state and territories.

It was promised to be the states’ own growth tax, which would help them fund their spending responsibilities, the biggest of which was healthcare.

But over the past 25 years since its introduction, it hasn’t grown with the economy.

And the solution

A 25 per cent tax on gas exports from Commonwealth waters could raise $17 billion a year.

Australia currently taxes its resource sector poorly and the gas industry is particularly good at avoiding paying its fair share. The Petroleum Resource Rent Tax (PRRT) is broken and has barely collected any extra revenue during a massive boom in gas company profits.

A gas export tax wouldn’t increase Australian gas prices because it would affect only exports. It would really impact only multinational gas companies, reducing profits that flow mainly to their overseas owners.

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[–] HalfEarthMedic@slrpnk.net 5 points 1 month ago

There's nothing inherently wrong here. Taxing gas exports is certainly something we should be doing and allocating the additional funds to the states is clearly a good idea.

Only thing I'd say is that this is kind of a kick the can down the road as eventually gas export revenues will decrease also.