Conservation Foundation Urges Federal Government to Tax Gas Giants to Fund Climate Protection
The Australian Conservation Foundation has proposed a 25% tax on gas exports to fund a multi-billion dollar climate and nature protection package in the upcoming federal budget. The plan advocates for cutting fossil fuel subsidies and redirecting funds toward household renewables, nature law reform, and species preservation to mitigate the economic impact of climate disasters.
Harry Taruva 
Canberra - One week ahead of the federal budget, the Australian Conservation Foundation (ACF) has released a strategic roadmap calling for a significant shift in national spending to prioritise nature and climate protection.
The foundation is advocating for the implementation of a 25% flat tax on Australian gas exports, a move estimated to generate at least A$17 billion annually, to counteract the rising economic toll of climate-fueled disasters.
ACF national climate policy adviser, Annika Reynolds, highlighted a clear disparity in current government spending, noting that climate and nature initiatives received less than one cent for every Commonwealth dollar in the previous budget.
In contrast, fossil fuel subsidies such as the fuel tax credit scheme accounted for 1.4 cents per dollar.
Reynolds said pivoting away from fossil fuels while encouraging renewable energy uptake would simultaneously address environmental crises and mounting cost-of-living pressures for Australian households.
The foundation's proposal outlines several major saving measures beyond the gas export tax, including reforming the Fuel Tax Credit scheme to remove rebates for major mining and fossil fuel companies, which could save approximately A$3 billion annually.
The ACF also recommends canceling the A$1.9 billion subsidy for the proposed Middle Arm gas precinct in Darwin and restricting large-scale miners from accessing research and development tax incentives.
Furthermore, the ACF is calling for an independent review of the A$368 billion enhanced trilateral security partnership between Australia, the United Kingdom and the United States (AUKUS) nuclear submarine program, citing a need for greater transparency and scrutiny of the nation's largest-ever defense expenditure.
The revenue generated from these shifts would be reinvested into five core areas of environmental and social resilience.
The ACF recommends a A$42.3 billion package over a decade for household renewables and energy efficiency, particularly for rental properties.
Other priority investments include A$22.7 billion for clean energy manufacturing, A$418 million for comprehensive nature law reform and the establishment of a National Environmental Protection Agency, and A$300 million to maintain the government’s commitment to preventing new extinctions.
Additionally, the foundation seeks to increase funding for the national food security strategy to A$10 million to facilitate deeper consultation with regenerative farmers and remote Indigenous communities.
The call for reform comes as the Insurance Council of Australia reports that extreme weather events resulted in A$5 billion in insured losses in 2025, a 700 percent increase from the previous year.
The ACF argues that while gas exporters continue to realise substantial profits, the Australian public is left to bear the economic and social costs of the resulting climate crisis.
