Hanson Proposes New Tax Plan for Gas Drilling

By Clare Armstrong

Topic: Oil and Gas

Thursday, 21 May 2026, at 6:41 pm

Pauline Hanson says her policy will give taxpayers a fairer return on natural resources.

In short:

One Nation wants to replace the current tax on new gas projects with a flat royalty and allow the government to buy equity stakes in future projects.

Hanson says this policy will encourage more exploration and give taxpayers a fairer return.

What's next?

Labor and the Coalition have criticized One Nation's proposal and defended their own approaches.

One Nation wants Australia to impose a royalty on new gas production and take an equity stake in future projects.

Hanson unveiled her new oil and gas policy at a conference in Adelaide.

She said this policy is a big change in how Australia gets returns on its resources.

Hanson told gas chiefs that Australians are unhappy because they do not get a fair share of resource profits.

Hanson wants more oil and gas production with generous tax incentives and the government as a partner.

Hanson says her gas plan is 'bold'.

One Nation's policy would give companies a 30% tax break for exploration in exchange for a 30% stake in new projects.

The government would direct the gas it owns into the domestic market and sell surplus abroad.

Profits from the government's equity ownership would go into a sovereign wealth fund.

This new fund would be called the Australian National Investment Wealth Corporation.

Western Australian gas users want the government to build stronger transparency and enforcement into its proposed national gas reserve scheme.

Hanson said this is a bold long-term vision.

The policy is similar to measures in Norway, where the government provides incentives for gas exploration and imposes a significant tax on production.

Hanson would replace the current tax on gas export profits with a new 'simple Commonwealth royalty' on all new gas production.

This would give the Australian people a consistent tax take and help preserve the industry's social licenses.

Hanson did not give a figure for the new royalty, but it has been reported that the rate would be 10%.

The Petroleum Resource Rent Tax would also be replaced under One Nation.

Existing projects would continue to operate under a grandfathered PRRT scheme.

Hanson acknowledged that One Nation had previously supported an expansion of tax on gas exports and a reserve for the east coast.

Hanson did not outline any forecasts of revenue under her proposal compared to the existing settings.

Labor and the Coalition criticize One Nation's plan.

Resources Minister Madeleine King said Norway's approach to gas is not appropriate for Australia.

King said the government develops its policies with a focus on Australia, not Norway.

King criticized One Nation for cherry-picking parts of another country's system.

Opposition Leader Angus Taylor said he does not support putting more taxes on oil and gas.

Shadow Resources Minister Susan McDonald said the oil and gas industry is already a big taxpayer in Australia.

McDonald said the industry is a huge employer of well-paid jobs.

The Coalition has a strong policy to ensure more investment and activity in the energy sector.

Thursday, 21 May 2026, at 6:41 pm

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