Australia’s prime minister, Anthony Albanese, has directed the Treasury to examine the potential introduction of a windfall tax on gas profits, marking a significant step as the government assesses how to respond to surging energy revenues and mounting domestic pressure.

The request follows a period of elevated global gas prices linked to geopolitical tensions, which have sharply increased returns for major exporters.

Officials have been tasked with modelling the economic impact of a possible levy on gas exports, alongside reviewing existing taxation frameworks such as the petroleum resource rent tax and corporate tax settings.

The move comes as policymakers weigh how to balance strong export performance with growing cost-of-living concerns at home.

Rising energy prices have fed into broader inflationary pressures, prompting calls for additional government intervention to ensure households benefit more directly from resource wealth.

Support for a windfall tax has intensified among crossbench lawmakers and advocacy groups, who argue that extraordinary profits generated during periods of global instability should contribute more substantially to public finances.

Some proposals under consideration include a flat-rate levy on export earnings, which proponents say could generate billions in additional revenue each year.

At the same time, the prospect of new taxation has triggered a firm response from the energy sector.

Industry representatives have warned that abrupt changes to fiscal settings could deter investment, reduce future supply, and weaken Australia’s position as a reliable energy exporter in competitive global markets.

The debate reflects longstanding concerns about the effectiveness of current tax arrangements governing offshore gas projects.

Despite the scale of Australia’s liquefied natural gas exports, revenue collection has fluctuated significantly due to price volatility, project costs, and structural features within the tax system.

Government ministers have not committed to implementing a windfall tax, but the decision to commission Treasury modelling indicates that the option is being seriously evaluated.

The findings are expected to inform broader fiscal strategy as the administration seeks to address budget pressures while maintaining investor confidence.

The issue is likely to become a central point of political and economic debate in the weeks ahead, as lawmakers consider how best to distribute the benefits of Australia’s natural resources in a period of heightened global uncertainty.