Energy prices spiked worldwide following Russia’s invasion of Ukraine and the resulting restrictions on Russia’s gas exports. This has in turn increased the value of Australian LNG exports and the profits of LNG companies. It is estimated that the war related windfall gain to LNG companies in 2021-22 at between $26 billion and $40 billion.

Despite widespread calls by economists and commentators to tax this windfall gain, the Australian Government is yet to do so. At least $20 billion could be raised by a tax on war related profits. This is enough to fund the Australian Government’s entire $20 billion investment in its Rewiring the Nation initiative to modernise Australia’s electricity grid and would leave funds to compensate Australian households and businesses unfairly impacted by spiralling energy costs, largely because of the behaviour of the LNG producers concerned.