Australia’s liquid fuel security has a long history of policy debate and is subject to changing trade and industry dynamics. Fuel supply and security was also a key focus in the 2026–27 Budget. This paper outlines Australia’s liquid fuel supply chain, storage arrangements, and some key measures from the budget.

War in Iran and the resulting impacts on energy markets have intensified debate about Australia’s gas exports. While Australian debate on taxation of gas features regular international comparisons, a comparison with Japan itself is rarely made. This report aims to fill this gap with a basic introduction to Japan’s Petroleum and Coal Tax.

Australia is critically exposed to geopolitical risk due to an overwhelming dependence on imported liquid fuels. Current policy positions have failed to confront the seriousness of this exposure, and have left us without a sufficient response. This paper proposes that domestic production is the only viable strategy that delivers genuine security.

The final report of the carbon leakage review undertaken between 2023 and 2025. Carbon leakage occurs when domestic production moves to countries with weaker climate policies. The review assessed potential measures to mitigate this risk and whether additional policies are needed. It found existing policy measures mitigate leakage risks in the short to medium term.

The review provides a summary of developments in Australian Government industry assistance, trade policy and foreign investment over the past year. The report finds that continuing to advocate for free and open trade and looking for opportunities to lower tariffs would be the best responses to changes in global trade policy.