Pressure building on Labor to ditch billions in fuel tax credits in budget
Pressure building on Labor to ditch billions in fuel tax credits in budget | Australian Greens Skip to main content Search Get Involved Join Donate Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Media releases Take action Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement About the Greens Become a member Jobs Green Magazine All news Get Involved Join Donate Search Our plan Toggle Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Toggle Federal MPs State/territory MPs Officeholders Media releases Take action Toggle Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement Toggle About the Greens Become a member Jobs Green Magazine All news Pressure building on Labor to ditch billions in fuel tax credits in budget 2026-01-30 The Australian Greens have backed in the momentum for the treasurer to abolish the billions of dollars in fossil fuel subsidies given to mining companies as an urgent measure in the upcoming budget.
Reports today show even Labor’s own Environment Action Network have come on board with a policy the Greens spearheaded 29 years ago, when Bob Brown first used a 1997 National Press Club address to call on the government to cap miners’ fuel tax credits. Independent analysis of the Fuel Tax Credit scheme shows major miners receive large sums of taxpayer money, BHP around $627 million a year and Rio Tinto around $416 million a year, that should be redirected into electrification and regional transition.
The Greens took a policy to the last federal election that would see the end of all taxpayer handouts contributing to the climate crisis, including these Fuel Tax Credits which are bankrolling highly profitable coal, oil and gas companies. This would free up around $8 billion a year¹ which could be repurposed to provide cost of living relief to households. Lines attributable to Leader of the Australian Greens, Larissa Waters: “If these handouts to coal and gas corporations survive the budget chopping block this year, that’s a clear red flag that Labor is prioritising corporate profits over people.” said Senator Waters on Friday.
“Australians are being told to tighten their purse strings while the government gives wealthy coal and gas companies hundreds of millions of dollars to buy diesel. It’s not good enough and it shows exactly where Labor’s priorities lie. “At the last election the Greens were clear: taxpayers should not be propping up the pollution and profiteering of the coal, oil and gas industries.
“The Greens first called for an end to the diesel fuel rebate for mining 29 years ago. Our 1998 policy called to scrap the handouts to fossil fuels - they were unjustifiable in 1998 and they are indefensible now. “Even those within Labor agree we shouldn’t be throwing taxpayer money at the multi-billion dollar fossil fuel sector.
Jim Chalmers needs to make this a priority in the upcoming budget. “The Greens want to see real reform that ends these fossil fuel handouts, not tinkering that leaves subsidies for wealthy mining corporations intact.” Facebook for the Australian Greens YouTube for the Australian Greens X for the Australian Greens Instagram for the Australian Greens Bluesky for the Australian Greens Privacy Members website Your safety Contact us Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action In your language 2025 policy platform Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Federal portfolios Federal media releases Take action Volunteer Donate Issues & campaigns Upcoming events Greens Shop Leave a bequest Green Magazine All news Our movement About the Greens Become a member Jobs Members website State/territory parties Contact us The Greens acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.
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