Lisa Chesters MP, Federal Member for Bendigo
Gas is still needed for industry and homes who can’t currently electrify. That’s why Albanese Labor Government will introduce a domestic gas reservation scheme that will require gas exporters supply a proportion of their total production to the Australian market – equivalent to 20% of exports, from 1 July 2027 – ensuring Australians have the affordable gas they need. Gas has an important role to play in our energy system as we transition towards more renewable generated electricity. We are delivering through large scale solar and battery projects more cheap, clean reliable renewable energy to our energy grid.
The boom in home batteries and roof top solar means more renewable energy is being generated taking some pressure of the electricity grid.
Renewables already generate over 45% of Australia’s electricity and this is increasing. Australia is on track to reach 82% of electricity generated by renewable energy resources by 2030.
But not every business, manufacturer and home can electrify. Gas power generators can be turned on and off in a couple of minutes – providing the ultimate backstop in our energy grid. We do tax gas companies. The Petroleum Resource Rent Tax raised $1.4 billion this financial year giving Australians a greater return on profits gained through export contracts.
I know that some people would like us to go further and increase tax on gas but in time of global economic and political upheaval, there are good reasons to prioritise fuel supply and gas reservation. Labor’s domestic gas reservation scheme will. We’ll keep 20% of our gas here so prices are more affordable for Australians.