The opposition asked if the government would rule out cuts to the Fuel Tax Credit Scheme.
The Fuel Tax Credit Scheme is a great big subsidy for those who use diesel. It costs the budget $10 billion per year. It is Australia’s largest fossil fuel subsidy.
The biggest beneficiaries are miners. Coal mining businesses alone are getting more than $1 billion.
Reform of this huge subsidy would save the budget billions and help us reduce greenhouse gas emissions.
At the recent productivity roundtable there was talk about forcing electric vehicles to pay a road user charge. It seems strange that we are thinking of pursuing a tax on electric vehicles before we get rid of enormous subsidies for people using diesel.
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