May 13, 2026

Budget misses vital opportunity to protect people from climate disasters and cost-of-living pressures

CANBERRA – In a time of escalating climate impacts, cost of living pressures and a global fuel crisis, the Federal Government’s 2026 Budget is letting communities down by failing to introduce a 25% tax on gas exports to fund the critical services our communities need, particularly the Disaster Ready Fund.

“This summer, families across the country, and particularly in Victoria, watched their homes burn and their towns flood. Disasters are only becoming more frequent and intense. For example, Gippsland has experienced 37 disasters between 2019 and 2024, with extreme heat, bushfires and floods. Communities like this deserve Government support but tonight’s budget shows that they are not a priority,” said Sawsan Alfayadh, Campaign Manager for Renew Australia for All.

“While everyday people struggle with the cost of living, more frequent and severe climate disasters and a deepening energy crisis, gas corporations are raking in record profits. By choosing not to implement a 25% gas export tax right now, the Government is leaving a $17 billion solution on the table – revenue that should be used to make our homes and communities safe. We are calling on the Government to prioritise people’s safety over corporate profits.”

The Renew Australia for All coalition is calling for the Government to stop delaying critical investment and instead:

• Fund Community Safety Now: climate disasters are becoming more frequent and severe. Significantly more funding is needed to help communities prepare for disasters and keep communities safe, including an additional $2 billion over 5 years to the Disaster Ready Fund (DRF) for community projects. People cannot wait for a two-year review of the DRF while climate risks escalate.
• Ensure Gas Companies Pay their Fair Share by introducing a 25% tax on gas exports: Super-profitable gas companies are raking in billions of dollars in war profits, while paying almost no tax on the gas they extract in Australia. Amidst a cost-of-living crisis, nurses, teachers and beer drinkers each pay more tax than gas companies do for taking our public resources. We continue to call for a 25% tax on gas exports.

“Everyday people shouldn’t have to be struggling to pay for their energy bills, rent and groceries while multinational corporations rake in billion-dollar profits from our gas. It’s time for the Government to introduce a 25% tax on gas exports and fund community safety and resilience,” said Ms Alfayadh.

Catelyn Richards, Assistant Secretary, Australian Nursing and Midwifery Association, said: “Nurses and midwives are on the frontlines of every heatwave, flood, and fire, working tirelessly to keep our communities healthy and safe. But our health system cannot run on resilience alone; it needs a level of funding that matches the scale of the climate risks we face. We need a system that is equipped and funded to stand strong as hazards intensify. It’s time to stop the culture of delay and ensure that corporate gas profits are used to support the frontline workers and health services that keep everyone safe.”

Emma Bacon, Executive Director, Sweltering Cities, said: “Extreme heat is a silent killer, leaving people sick in their homes and struggling to afford the basic cooling they need to stay safe. It is fundamentally unjust that people are facing a cost-of-living and climate crisis while multinational gas corporations rake in billion-dollar profits. We need urgent investment in safe, climate-ready homes and resilient health systems. The money is there – by taxing gas corporations fairly, the Government can fund the safe homes and community infrastructure our hottest suburbs desperately need”.

Nic Seton, CEO of Parents for Climate, said: “As parents, our priority is ensuring our children grow up in a safe environment, but that basic security is under threat from intensifying climate disasters. This Budget was a chance to put the safety of families ahead of corporate profits. We need the Government to act now to fund heat-resilient homes and community services that protect our children’s health and education. By introducing a 25% tax on gas corporations and expanding the Disaster Ready Fund, we can invest in the climate safety our children deserve tomorrow.”

Alice Salomon, Head of Advocacy, Uniting NSW/ACT, said: “In our services, we see the real-world impact of the climate crisis every day – from disaster fatigue in flooded towns to the danger extreme heat poses to people in insecure housing. We can no longer leave community services and local people to shoulder these risks with insufficient resources. The Government must move beyond small rule changes and use the revenue available from gas exports to fully fund communities to prepare for and recover from climate impacts. We need an immediate uplift in investment so that no one is left behind as these crises compound.”