A former economics teacher turned political commentator has called out Australia’s government and gas industry for ‘selling out’ everyday Aussies by essentially giving away valuable resources for free.

Konrad Benjamin appeared at a Senate committee hearing on Tuesday to highlight how the tax system surrounding Australia’s liquified natural gas (LNG) exports has benefitted huge corporations by confusing regular Australians.

Mr Benjamin, who runs the site Punters Politics, has been leading calls for Australia to introduce a royalties system on its LNG exports, which would be on top of its existing Petroleum Resource Rent Tax (PRRT).

To simplify a complicated concept, companies extracting gas from Australia typically pay a 40 per cent tax on the profit they make through PRRT. Those profits can be offset by losses for capital expenditure and several other accounting factors.

The government collected about $1.5billion in revenue from the PRRT in 2025.

It’s an incredibly low amount charged to companies, mostly foreign-owned, profiting from one of Australia’s most valuable resources with Mr Benjamin saying the low tax makes the resource essentially ‘free’ for businesses to take.

The $1.5billion in tax is less than that collected from the beer excise, $2.7billion, and is lower than some countries’ tax for businesses to import Australian gas.

For example, Japan’s government collects about $1.8billion every year on taxes for Australian gas imports, The Australian Institute reported. 

Konrad Benjamin (above) told a Senate committee investigating Australia’s gas tax system that the government had ‘sold out’ everyday Aussies

The committee heard the Albanese Government could have collected an additional $63billion in revenue if it introduced a proposed tax in 2022

The Cesi Tianjin liquefied natural gas (LNG) tanker docked near a LNG processing plant on Curtis Island, Australia

Mr Benjamin said the existing taxation on LNG exports didn’t pass the pub test, especially following years of major national debt.

‘We’re told every day, “Oh we can’t afford to invest in schools, our medical system is under strain”,’ he told the Select Committee on the Taxation of Gas Resources on Tuesday.

‘We’re about to hear (in the upcoming federal budget) that the global economy is under shock and we can’t afford anything.

‘Except when we look at what we are as a nation, lots of resources that we all collectively own, we know it not to be true. We’ve been sold out.’

Mr Benjamin is part of a large group of Australians calling for a new tax to be introduced on gas exports, with some calling for an additional 25 per cent royalty.

Former Treasury secretary and author of a prominent tax review, Ken Henry, says the Australian Government’s existing gas revenue regime is insufficient.

‘People will say, in respect of the taxation of gas, that the Petroleum Resource Rent Tax does a bit, and it’s true, but that’s the point,’ Mr Henry said.

‘It does such a tiny bit that anybody should be embarrassed to use that as an argument for not changing arrangements.’

Former treasury secretary Ken Henry told the committee Australians has been ‘putting up with this crap for decades’ in reference to not seeing a benefit from gas exports

A large group of Australians have been calling for Australia to impose a heavier tax on gas exports, noting the resource is essentially being given for ‘free’ to foreign companies

He said Australians have ‘put up with this crap for decades’. 

Richard Denniss, an economist at the Australia Institute, previously claimed the Albanese Government would have collected an extra $63billion in revenue if it introduced the additional royalty when it came to power in 2022.

Broken down, he estimated the tax would raise $17billion each year or roughly $350million each week, ‘money we will never get back’.

‘No one doubts that the gas industry makes really large profits but Australians now doubt that they are getting a fair share for that,’ Mr Denniss said, and added that giving away resources to foreign companies had become ‘the Australian way’. 

Mr Benjamin pointed to Norway as an example of how Australians should be benefiting from the country’s natural gas reserves.

Despite producing and exporting less gas than Australia, Norway is largely recognised around the world for having some of the best living standards due to its social programs. 

Norway’s welfare systems, including free higher education, are bankrolled by the world’s largest sovereign wealth fund.

The Nordic country has imposed a 56 per cent ‘special tax’ on oil and gas companies since the mid 1990s, as well as a 22 per cent corporate tax rate. Its government also holds a majority ownership stake in gas production. 

Mr Benjamin (above) pointed to Norway as an example of the social benefits Australians should be reaping from its gas reserves

The Australia Institute’s Richard Denniss said global gas companies were ‘taking the p***’

The money collected by Norway’s gas was then reinvested into the country’s wealth fund and diversified. Now, energy revenue makes up less than half of the fund. 

Mr Benjamin told the committee the government could no longer tell Australians gas taxes are ‘too technical, too complicated’.

‘The question we punters have is – how are we holding all of the cards, yet still be losing?’ he said. 

‘…We understand that Australia’s gas is incredibly valuable. We understand that we’re giving most of it away, for free, to foreign corporations. We understand that those same corporations pay bugger all tax.

‘We understand countries like Norway looked at their oil and said, “That belongs to us”. Their politicians made rules and contracts that resulted in Norwegian citizens having access to a three-trillion-dollar sovereign wealth fund.’

Gas companies have pushed back against calls for an increased tax on Australian resources, claiming it would only drive domestic prices higher.

However, Mr Denniss pointed to Norway to dismiss those claims.

‘There’s no Norway premium for Norwegian gas, which is heavily taxed. All of the gas is selling at the same world price,’ he said.

Mr Denniss added a tax would only increase the supply of gas to Australians ‘by taxing the gas exporter to increase the supply of gas’.

‘And, we will push the price of that gas down,’ he said.

The Senate committee will continue to investigate arguments for and against a new gas tax ahead of the new Federal Budget, to be released in May.