Today’s decision by Labor’s National Conference in Adelaide to reject the activist push to cap or remove Fuel Tax Credits is a victory for regional Australia, local jobs and businesses that keep Australia moving.
The Conference instead adopted broader language stating that “Labor will ensure that all policies, including taxation, work together to provide appropriate incentives and remove disincentives for orderly decarbonisation”.
Fuel Tax Credits are not linked to decarbonisation, as they provide fair treatment for businesses that use fuel off public roads.
Regional industries including farming, mining, construction, fishing, forestry and tourism rely on diesel to operate machinery, vessels and equipment in places where they do not use, or benefit from, the road infrastructure which fuel excise was designed to fund.
In addition, the Fuel Tax Credit costs taxpayers nothing and has never been included in the Budget, as it is a rebate for companies that pay fuel excise and then receive a refund if that fuel is used off road.
Capping or removing Fuel Tax Credits – as proposed by numerous activists in recent months – would hit regional and trade-exposed industries with higher costs and increase the cost of living for every Australian.
“This is a sensible outcome, because the last thing our industries need is higher costs which would threaten their survival,” Minerals Council of Australia CEO Tania Constable said.
“We thank the thousands of Australians, industry members and regional businesses who supported this campaign and made sure the voices of communities that depend on Fuel Tax Credits were heard.”
“We greatly appreciate the support of the Prime Minister, Minister for Resources the Hon. Madeleine King MP and other Ministers and regional Labor MPs who have stood up for Fuel Tax Credits within the Labor Party.”
The Alliance thanked many regional organisations, businesses and individuals who supported the Hands Off Our Fuel campaign, including more than 10,000 Australians who have signed the Hands Off Our Fuel petition, showing strong community support for a fair tax system and for protecting regional industries from further cost hikes.
This ensured the ‘hands off our fuel’ message was heard loud and clear by policymakers.
Additional Quotes from Alliance Members
Michael Guerin, CEO, National Farmers Federation:
“The diesel fuel rebate recognises vehicles that aren’t on the road. Agriculture is an important element of that.”
Denita Wawn, CEO, Master Builders Australia:
“Builders and their suppliers rely on fuel and diesel-powered equipment on construction sites every day. The industry cannot afford additional costs that would flow through the supply chain and ultimately add to the cost of building new homes.”
Gareth Phillips, CEO, Association of Marine Park Tourism Operators:
“The Fuel Tax Credit Scheme is critical to the Great Barrier Reef marine tourism industry. Our boats do not use the road network, and the scheme ensures our industry is not unfairly burdened by a fuel tax designed to fund infrastructure we don’t use. It supports the viability of our businesses, staff jobs, which are regional jobs, and ensures access to the Reef.
“Fuel is one of our largest operating costs, and unlike many other industries, our vessels simply do not have a practical alternative to diesel at this time. Our industry is already under enormous pressure from reduced visitation, rising operating costs and fuel price increases.”
Dominic Lane, Acting Deputy CEO, Australia Forest Products Association:
“The Fuel Tax Credit scheme is vital to the competitiveness of industries operating in regional Australia, including forestry.
“As many forestry industry operations don’t occur on public roads, we only apply the credit to off-road uses, such as harvesting and fighting bushfires.”
Angela Gillham, CEO, Maritime Industry Australia Limited:
“The Australian maritime industry provides incredible value to the national economy as a key lynch pin in securing our supply chains, ensuring our resources continue to drive the national economy and showcasing our natural beauty to tourists visiting our shores.
“The Australian maritime industry does not run its businesses or use its fuel on public roads. Why would it pay a tax for the upkeep of them?”
Peter Hermann, President, Ricegrowers’ Association of Australia:
“Our pumps tractors and harvesters don’t use public roads. The fuel tax is to fund public roads. That’s why an exemption applies. Ignoring these facts undermines productivity and trust.”
Simon Boag, Executive Officer, South East Trawl Fishing Association:
“The rebate of road tax is higher than the profits made by the trawl fishing industry. Therefore, making fishing vessels pay road tax will destroy the supply of local fresh sustainable fish that the Australian community has a right to access.”
Emily Rowe, Executive Officer, Commonwealth Fisheries Association:
“As someone working in Australia’s commercial fishing industry, I see firsthand the pressures our businesses are already under. Fuel Tax Credits simply ensure fishers aren’t paying a road tax on fuel used at sea.
“Removing them would increase the cost of producing Australian seafood, place further pressure on regional businesses, and make it harder to keep Australian seafood on Australian plates.”
