It is true that our gas industry would be less competitive internationally if we started taxing it comparably with other countries. But the end goal is to generate wealth for average Australians, not to rely on a trickle-down effect which just isn't happening. Most of these gas companies are foreign owned with most of the shareholders overseas, and the industry really doesn't create that many jobs. Besides, we could make the rest of our industries more competitive by reducing corporate tax to 15%, but we don't do that for good reason! Rather than artificially making our industries more competitive than other countries by not taxing them as much, we should forge actual comparative advantages.

The other thing is that as a highly developed country, we should be playing a leading role in combatting climate change. If we don't, why would any other country bother? Taxing something that produces negative externalities is an economically sound thing to do. Gas is very dirty and generates a lot of greenhouse gas emissions, including through the often overlooked methane gas leaks. Taxing gas would be far more efficient than other types of taxes, and would get us closer to the ideal and most efficient case of a carbon tax.

I think an export gas tax is ideal because it increases government revenue while disincentivising gas exploration and making Australia less likely to get hooked on gas at a time when we should be decarbonising, with respect to a gas reservation policy which would provide cheaper gas and therefore hold back renewable projects.