"Australia is one of the world's largest exporters of Liquified Natural Gas but, despite this fact, the largely foreign-owned gas industry has been making the bizarre claim that there is a shortage of gas in Australia," said Dr Denniss.
"Peter Dutton's rejection of that silly claim, and his proposal to tax gas exports to encourage greater local supply, is a watershed in Australian energy policy debate."
Research by The Australia Institute shows that more than 80 percent of gas produced in Australia has been used for exports, and more than half of those gas exports were given away, royalty-free, to the gas exporters.
"Putting a tax on gas exports is an easy way to ensure that more of Australia's gas flows to Australians and that they pay less for it," said Dr Denniss.
"Introducing a cap on gas exports as well would be an even better way to both protect Australians from cost-of-living pressures and protect the climate from increased emissions from burning gas.
"The opportunity for Labor to expand on the Coalition's policy is enormous.
"For decades, the major parties in Australia have seemed afraid to put the interests of Australian taxpayers ahead of the profits of the fossil fuel industry.
"But now that Peter Dutton has made the first step, the opportunities for the new parliament are unprecedented.
"Norway taxes fossil fuel companies and gives young Norwegians a free university education while in Australia we subsidise the fossil fuel extractors and charge our kids a fortune to go to university.
"It is time for Australian leaders to be brave enough to put the interests of the Australian people ahead of the interests of the fossil fuel polluters."