Recent economic modelling Analysis of proposed LNG export windfall levy undertaken by Wood Mackenzie on the impacts of a 25% gas export tax has been quickly and fully embraced by the fossil-fuel companies, and other lobby groups. These groups have used the modelling to claim that a 25% gas export tax would cause all sorts of problems for Australia, from higher gas and energy prices, gas and petrol shortages, a flight of foreign investment to other countries, and harm to diplomatic relations with Australia’s trading partners.

This analysis of the report finds that the modelling is mostly irrelevant to the gas industry in Australia. It suggests it modelled a gas project that doesn’t exist, a tax proposal no one is asking for, and claimed that it would lead to a country no one would invest in.