Shell has cautioned the Australian government against introducing a windfall tax on gas exporters as policymakers consider measures to capture rising revenues from liquefied natural gas (LNG). The warning arrived amid a sharp rise in global LNG prices following the Iranian conflict, which prompted Canberra to ask the Treasury to develop a new tax model for LNG exports and to consider reforms to the Petroleum Resources Rent Tax (PRRT). The debate has become central to fiscal discussions in Canberra. Shell Australia portrayed short term policy responses as capable of undermining long term economic growth and diminishing the value of existing and planned projects. The company argued that abrupt fiscal measures risk deterring the investment required to maintain supply and to support future development of domestic gas fields. Concern was also expressed that measures targeting windfall gains could reduce Australia’s competitiveness in global energy markets. Industry executives acknowledged that elevated commodity prices are already increasing government receipts, yet they maintained that revenue considerations need to be weighed against the potential long term costs to the investment climate. The discussion has been shaped by criticism of historically low tax contributions from some gas producers, which has intensified public pressure for a reassessment of the fiscal regime. Advisers and analysts have urged a carefully designed approach that seeks to preserve investor confidence while addressing legitimate concerns about revenue fairness. Canberra faces the task of balancing the objective of securing additional revenue for the public purse with the need to ensure energy security and to attract the capital necessary for long term projects. Officials are expected to consult widely with industry and independent experts as the Treasury prepares options for the government to consider. The outcome will hinge on whether policymakers can craft a mechanism that captures extraordinary gains without discouraging the investment the sector requires.