Peter Dutton is right to say Australia needs to bank the windfall profits the mining industry makes when global commodity prices soar.
However, Australia cannot build a sovereign wealth fund like Norway, unless Australia taxes resources the way Norway does.
Australia Institute research shows Australia currently gives away more than half the gas we export for free, with zero royalties paid on 56 per cent of all the gas we sell overseas.
Peter Dutton has rightfully acknowledged Australia has an abundance of gas, and his idea to tax gas exports to ensure our gas flows first to Australian businesses and households is a good idea and big shift in the debate.
"The offshore gas industry has never paid a cent of Petroleum Resource Rent Tax. Imagine if Australia started charging foreign companies for the resources we give them and spent that money looking after Australians," said Richard Denniss, Executive Director of The Australia Institute.
"In Norway they tax their fossil fuel industries and give their kids free university education, while in Australia we give our gas away for free and charge our kids a fortune to go to universities.
"Australians do need a better deal from all the resources we export, but we won't get a good deal until we have a good tax system".
