Wong Dismisses Gas Tax as Japanese PM Arrives for Canberra Talks

Japanese Prime Minister Sanae Takaichi has arrived in Australia as the two nations mark the 50th anniversary of the Basic Treaty of Friendship and Cooperation.

Takaichi touched down in Australia late on May 3, with diplomatic discussions in Canberra expected to focus on energy and defence.

This is her first visit to Australia since winning the Liberal Democratic Party (LDP) leadership election in October 2025 and becoming Japan’s first female prime minister.

The Japanese leader is expected to participate in talks with Australian Prime Minister Anthony Albanese throughout May 4.

As part of energy discussions between the two nations, gas policy is expected to feature prominently, as both countries navigate competing pressures over energy security and supply.

The Australian government has been facing increasing pressure from left-leaning groups including the Greens and some independent and Labor MPs to tax gas exports due to high domestic prices.

Australia remains a key energy supplier for Japan, which imported approximately 27.5 million tonnes of liquefied natural gas from Australia in 2023, according to World Bank data.

During a media conference in Canberra on May 4, Australian Foreign Affairs Minister Penny Wong said the government would not be introducing a tax on gas exports—which is significant to Takaichi’s visit due to Japan’s reliance on Australian gas.

“The position that our export partners have always put to us is they want reliability. And as the Prime Minister explained in a speech whilst I was away, our reliability is an asset,” she told reporters on May 4.

“We make decisions in Australia’s interests, focusing on how we can ensure the best outcome for Australia, both in terms of the returns for all our exports, but also on our reliability which enables us to also seek reliability at this time.”

The minister also downplayed queries around whether Australia could be looking to Japan as a back-up option in case of any interruption to Australia obtaining submarines under the AUKUS deal.

“We have a clear AUKUS plan, that is our focus,” she told Nine’s Today program.

“Having said that, we obviously will continue to work very closely with Japan.

“Japan is our special strategic partner. Our relationship has grown from strength to strength over the last 50 years.”

Japan’s Mitsubishi Heavy Industries is also supplying Australia with upgraded Mogami-class navy frigates in a $10 billion deal.

During her visit to Australia, Takaichi is expected to seek reassurances on gas supplies, negotiate a critical minerals deal, and lay a wreath at the Tomb of the Unknown Soldier.