Higher commodity prices are set to boost company tax receipts by $6.7 billion in 2026/27, according to fresh estimates released in the federal budget on Tuesday.
But despite oil and LNG prices surging since the start of the Middle East conflict, income from the petroleum resource rent tax has been revised down by $100 million to $1.4 billion for the current financial year, compared to forecasts in December's mid-year budget update.
PRRT revenue is expected to climb to $1.9 billion in 2026/27, primarily due to the higher oil price, before falling each subsequent year until it hits $1.25 billion in 2029/30 as the oil price stabilises.
By contrast, the beer excise is forecast to bring in $3.1 billion in 2029/30.
A social media post by independent Senator David Pocock highlighting the disparity between the two revenue streams led to a groundswell of support ahead of the budget for changes to the way gas exports are taxed.
Despite a Senate inquiry finding the PRRT was ineffective, Labor decided not to touch the tax, citing concerns that it could anger key fuel suppliers who rely on Australian gas.
Treasurer Jim Chalmers has also pointed to changes made during Labor's previous term of government that were designed to make gas companies pay the tax earlier in the life of projects.
But the government has left the door open further changes down the track.
Labor senators who took part in the inquiry recommended Treasury conduct a review of Australia's tax settings once the fuel crisis was over.
Instead of lifting taxes on gas exports, the government has pushed ahead with moves to create an east coast domestic gas reservation, which will require gas companies to direct 20 per cent of supply to the local market from July 2027.
The government set aside $35.5 million in the budget to support the implementation of the reserve and streamline gas regulatory frameworks.
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