"Federal and state governments are spending more than $10 billion a year
propping up the fossil fuel industry, through a system of tax breaks and cash
handouts that encourage the entrenched use of oil, gas and coal by Australian
business, new research by the Australia Institute finds.
The biggest portion of that figure is the whopping $7.84 billion the federal
government returns to business through its fuel tax credit scheme. That’s more
than the $7.82 billion it put aside for the Army in the 2020-21 budget.
The progressive Canberra-based think tank, which is a vocal campaigner for
aggressive climate action, found just over $1.5 billion of that $7.84 billion
went on fuel used by the fossil fuel mining industry. In other words, it
subsidised the fossil fuels used to help dig up more fossil fuels.
When the states and territories’ spending on fossil fuels is added to the
tally, the fossil fuel industry will have received $10.3 billion of government
support in the 2020-21 financial year.
While the term “fossil fuel subsidies” may conjure up images of government
hand-outs to massive coal or gas companies, the research reveals a reality that
is subtler but more entrenched."
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics