Coal companies to reap billions more in taxpayer diesel subsidies as Labor approves new mining
Summary
Coal companies in Australia could receive an extra $6.2 billion in taxpayer refunds for diesel fuel used at mines if new projects are approved by the Albanese government. The fuel tax credit scheme refunds part of the diesel excise tax, and critics say it encourages coal mining while supporters say it helps businesses that use fuel off public roads.Key Facts
- The fuel tax credit scheme refunds 52.6 cents per liter of diesel and petrol used for mining and farming.
- Treasury estimates the scheme will cost taxpayers $47 billion over four years, rising to $12.8 billion in 2029-2030.
- Over $1 billion a year from the scheme goes to coal mine operators.
- An analysis found that 11 proposed coal mine developments could receive $6.2 billion in diesel subsidies over their operational lives.
- One large project, Hunter Valley expansion by Glencore and Yancoal, could get $1.7 billion in refunds.
- Mining vehicles use around 35% of Australia's diesel, with coal mines accounting for about 15%.
- Supporters say the tax credit prevents businesses from paying a tax meant for public roads on fuel used elsewhere.
- Critics argue the scheme subsidizes fossil fuel use and reduces incentives to switch to cleaner technology.
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