Taxes and royalties on Australian gas exports are expected to nearly triple amid booming prices brought on by the war in Ukraine.
The fossil fuel industry lobby, the Australian Petroleum Production and Exploration Association (APPEA), estimates the gas sector will pay nearly $14 billion to state and federal governments in the 2022-23 financial year.
But the industry has been told it shouldn't be patting itself on the back for its higher contribution as Australians struggle to pay energy costs.
The war in Ukraine has cut Europe off from Russia's crucial gas supply, leaving countries scrambling to source the fossil fuel from elsewhere, driving up demand and prices.
APPEA estimated Australian gas exporters paid $4.84 billion in tax, royalties and excise in 2021-22, however the figure was expected to balloon out to $13.87 billion in the current financial year.
The bulk of the increase was forecast to come from booming corporate income taxes for federal government coffers, which were expected to rise from $1.72 billion to $8.7 billion.
APPEA head Samantha McCulloch said the industry was on track to recover the $300 billion it has invested in gas projects since 2010.
"The taxation profile of the (liquid natural gas) industry is evolving with changing economic conditions, including higher-than-forecasted prices," she said.
But independent senator David Pocock said any increase in taxes from the gas sector paled in comparison to the record profits the industry was enjoying.
"We don't import gas from Russia and yet Australians are paying record prices for gas, with industry struggling to cope with the increased costs," he told AAP.
"I don't think it's the time for gas companies to be patting themselves on the back about how much they contribute: they are profit-driven, mostly foreign owned, and it's clear they have not been putting Australians first."
Senator Pocock called for an end to fossil fuel subsidies and for that money to be redirected to address surging consumer prices and building renewable energy projects.
Meanwhile, gas exporters agreed on Thursday to prevent a shortfall in domestic supply by allowing Australian users first dibs on uncontracted gas.
