New tax would hit recovery and jobs

Scrapping the Fuel Tax Credit (FTC) scheme would create a new tax for many of Australia’s industries, undermine their competitiveness and adversely impact thousands of jobs in regional Australia.

It would also create financial hardship for some of Australia’s most remote communities.

The FTC scheme is not a subsidy. The cost to taxpayers is zero.

Any move to reduce eligibility for the FTC scheme would introduce a tax distortion by imposing a levy on industries that are reliant on diesel fuel to generate power and operate heavy machinery off road or in heavy on-road transportation vehicles.

Fishing fleets, tourism craft, farming machinery, mining and resources vehicles, ferries and tug boats should not pay a road tax.

Australian mining is a major and growing contributor to jobs, investment and communities and has kept Australia’s economy and the communities in which it operates strong during the COVID-19 pandemic.

The mining industry has generated a new record high of almost $300 billion in export revenue for the Australian economy in 2020-21 and pays its fair share of taxes and royalties.

For more information on the FTC scheme and the role it plays in Australia’s industries, click here.

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