SYDNEY: Australian Prime Minister Anthony Albanese said today (Nov 11) his government will consider all measures, including introducing a price cap on gas, to rein in high energy prices, but ruled out a tax on mining companies.
The Albanese-led Labor government in its budget last month forecast household gas and power prices would rise by 20% to 30% over each of the next two years, partly due to Russia’s war in Ukraine.
“Look, (a price cap on gas) is one of the options that is under consideration,” Albanese told radio station 2GB.
Albanese's comments come a day after Brookfield Asset Management and EIG-backed MidOcean Energy's A$18.4 billion (RM55.3 billion) buyout offer for Origin Energy, defying industry warnings that market intervention would stall investment in new supply.
Amid soaring energy prices that have resulted in windfall profits for coal miners and gas producers, Albanese said the government currently had no plans to slap any new tax on “extraordinary profits” made by the energy companies.
“I’m not quite sure what a mining tax is besides a slogan,” he said.
Albanese said his government will not take any measures to impact supply.
“We have contracts with other nations for supply. We don’t intend, of course, to interfere with any of that. So that limits what options are on the table,” he said.
In efforts to raise funds to support households hit by soaring energy bills, the European Union and Britain have imposed windfall tax on oil and gas companies' profits. US President Joe Biden has threatened to impose one but that would unlikely win support in the US Congress.
Australia'’s Labor government led the charge in passing laws in 2012 for a 30% tax on iron ore and coal mine profits but that was repealed two years later by the conservative coalition government. – Reuters
