Albo considering fresh new tax

Speaking on Friday the Prime Minister said “all sensible measures”, including the introduction of gas price cap, are on the table but played down speculation of a super profits tax.

“We can’t just sit back and watch while energy prices go through the roof for households and for businesses,” he told ABC Radio.

He said the government was working through the issue with departments and the states but his preference was not to introduce a temporary tax.

“Our preference is not that, but we‘re working through the issues constructively,” Mr Albanese said.

“We need to acknowledge that in half of the states, we’re literally talking about state-owned assets involved here.

“So the states and territories will need to be engaged here, particularly in New South Wales and Queensland. But we also are working through constructively with the sector, and we’re hopeful of getting an outcome.”

October’s budget revealed Treasury expected retail electricity prices would increase by up to 56 per cent over the next two years.

Asked later if he was contemplating introducing a gas price cap, Mr Albanese said it was “under consideration”.

“We know Western Australia, for example, isn’t dealing with the same pressures that are here on the east coast,” the Prime Minister told 2GB.

The government is expected to hand down its energy price plan by the end of the year.

Earlier this week, Treasury secretary Steven Kennedy said the department would support a government intervention to address surging prices.

Greens leader Adam Bandt urged the government to consider a windfall tax on the coal and gas giant.

“We’re in a cost-of-living crisis and instead of asking everyday people to pay more, Labor should freeze power bills and put a windfall tax on greedy coal and gas corporations,” he said.

“Other countries have had the guts to stand up to these greedy coal and gas corporations. Even the conservatives in the UK introduced a windfall profits tax, and we should too.”