Calls have grown on the federal government to impose a 25 per cent tax on gas exports in the May budget, as a Greens-led Senate inquiry on Friday prepares to quiz industry executives about the issue.
But Resources Minister Madeleine King appears to have poured cold water on the suggestion of increased taxes for the sector.
"In relation to gas, we know there's no change in our position on the taxation of that commodity," she told ABC Radio ahead of the meeting.
"It's only in the universe of the Greens party and their friends that they can say that spending hundreds of billions of dollars across the country could be considered in any way free."
Prime Minister Anthony Albanese also gave his strongest public indication a tax was not on the table, talking up the industry's contribution on Thursday.
"They pay around about $22 billion ... you need to acknowledge the tens of billions of dollars of investment that occurs in order to have that gas extracted," he told the ABC's Afternoon Briefing program.
"Without that investment that's come from North America, that's come from Japan ... we wouldn't be having a debate because there wouldn't have been that extraction."
Ms King said taxes for the resource were already in place, such as for offshore gas reserves.
"We've got to remember what those billions of dollars of investment has delivered for the Australian people," she said.
"One of the things (we get out of it) is a domestic gas supply. We're trying to make that fairer, so that there is more gas available in times of need."
Opposition resources spokeswoman Susan McDonald said calls made during the inquiry to implement the tax were misguided.
"We've discovered that the arguments being put up by those seeking to hike taxes is because they really don't understand what Australia's tax system is," she told ABC Radio.
Senator McDonald said rather than increasing tax on gas companies, the economy would receive extra revenue if more gas reserves were opened up.
"Once the gas starts flowing, the tax take start to shoot upwards," she said.
"We will see a much bigger return than what's been proposed by this 25 per cent tax, particularly over long term, because we won't undermine investability in this country."
Woodside, Chevron, Santos, INPEX and peak body Australian Energy Producers are all expected to argue any new taxes on the sector would stifle investment and cost jobs, when they face a Greens-led Senate hearing on the taxation of gas resources on Friday.
"For Australia to remain competitive, stability in fiscal settings is critical," Chevron's submission to the inquiry says.
"Introducing an additional tax on LNG exports would increase perceptions of sovereign risk and further reduce Australia's attractiveness for long-term investment."
A number of the gas companies have defended the Petroleum Resource Rent Tax regime, which has been criticised for raising little revenue from resources companies.
But this was by design, INPEX's submission argued.
"The absence of PRRT payments in the early years of large LNG projects reflects intended design and phasing, not tax avoidance," it said.
The system was designed to raise more tax income once projects matured and become more profitable, the Japanese-owned oil and gas company said.
Still, independent MP Allegra Spender said a 25 per cent tax on gas exports would help fix issues in the sector.
"The gas industry is a very profitable industry and pays income tax. And every company in Australia, frankly, should pay income tax on its profits and should pay the proper rate," she told ABC Radio.
"The gas companies are different because they also sell an Australian resource which they extract, which we can't get back once it is sold."
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