Albanese won’t bring in a gas export tax next week – but he’ll struggle to hold off pressure forever

Two separate events on Monday – one in rain-soaked Canberra, the other in sunny Gladstone – neatly explain why the federal government won’t pursue a new gas export tax in next week’s budget and why it might have no choice but to do so in the future. In the nation’s capital, Anthony Albanese hosted his Japanese counterpart, Sanae Takaichi, for annual leaders’ talks that coincided with the 50th anniversary of the signing of a landmark treaty between the two nations. The prime ministers made high-level commitments on economic security, energy trade, defence and cyber, elevating a friendship that Albanese said had “never been closer”. Had local journalists had the chance to put questions to Takaichi – which they didn’t – she would have almost certainly been asked about the prospect of a new tax on Australian liquified natural gas (LNG) exports. Takaichi might not have responded, at least not explicitly. But the Australian government – from Albanese down – would be in no doubt such a measure would face political and corporate resistance in Tokyo. Sign up for the Breaking News Australia email Australia supplies Japan with roughly 40% of its LNG, making the east Asian nation hostile to any market intervention that it considers a threat to the stability of those supplies. …