Labor warned of $166 billion X-factor as union war and global turmoil threatens budgets

The Albanese Government is being warned that billions of dollars and thousands of jobs are at stake, if a new gas tax is levelled at the war-time profits of Australian exporters. The Chamber of Minerals and Energy WA has timed the annual release of data, revealing the industry’s economic impact, ahead of the Federal budget on May 12 and amid the twin threat of industrial action in the Pilbara and surprise backing for a 25 per cent flat tax on gas profits. The resources industry’s peak lobby group in WA said the sector injected a record $166 billion into the national economy last year, including $38.6 billion in taxes and royalties to State and Federal Governments. “It’s enough to pay for one million Australians to visit a bulk-billed GP every single day of the year,” CME WA chief executive Aaron Morey said. “By Valentine’s Day, the WA resources sector could pay for every single police officer in the State and by the end of the year we could have covered the costs of every nurse and doctor too.” But he’s warned WA’s success cannot be taken for granted, as fears grow that the war in Iran could strangle supplies of oil and fertiliser. “Australia needs to confront some hard truths. The world is not short of mineral and energy reserves, nor is it waiting on Australia to supply either at any cost,” Mr Morey said. He hit back at calls from the Greens and Independent MP David Pocock for a new tax on export profits, that is reportedly being modelled by Treasury on request of the Department of the Prime Minister and Cabinet. The idea won surprise backing from WA Liberal Andrew Hastie last week, who told The Guardian he’s open to the idea. “I think a lot of people – Australians – feel like the multinationals don’t have a social licence, that they’ve had a really good run of our wealth here, and so I’m sympathetic to that point of view,” Mr Hastie said. “I’d love to see an Australian sovereign wealth fund that sets us up for generations to come.” Mr Morey warned it would increase the risk of investment in Australia, and could impact prices here. “Every Australian has witnessed the impact of the Middle East conflict at the bowser, but while petrol and diesel prices have soared, Australian domestic gas prices have held steady,” he said. “The only reason we have a stable supply of domestic gas is because of the massive investment Australia has attracted into LNG projects over the past 40 years. “Pulling the rug out from under those LNG exporters with a short-sighted new export tax will undermine investor confidence, weaken the pipeline of new projects and ultimately drive tax receipts down and energy costs up.” The industry is already nervous, over the return of union influence to the Pilbara where members of the Electrical Trade Union working for BHP have voted to strike for the first time in 40 years. Mr Morey accused the ETU of “revelling” in chaos. “That chaos will have direct consequences for WA families and future generations, who risk missing out on jobs and opportunities,” he said. The annual CME WA economic contribution survey found WA resources companies pay $26 billion a year in direct payments to employees, and support a further 26,196 businesses and 2,207 community organisations. The local government areas with the highest number of jobs linked to resources are Wanneroo and Stirling in Perth’s northern suburbs that will be a key battleground for the next Federal election.