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https://reneweconomy.com.au/capping-australias-biggest-fossil-subsidy-is-the-productivity-reform-we-cant-afford-to-ignore/>
"Australia’s biggest fossil fuel subsidy is hiding in plain sight. The diesel
Fuel Tax Credit (FTC) scheme – a taxpayer-funded rebate mostly benefitting big
miners – is costing Australians tens of billions, fuelling emissions, and
damaging productivity growth.
Critically, it disincentivises miners from investing into clean energy to power
their operations.
This federal FTC Scheme rebates the full fuel tax of 51.6 cents per litre on
high-emissions imported diesel used off-road in industry. The tax doesn’t fund
roads – it’s a form of industry assistance. The oft-repeated justification by
the fossil fuel lobby and some recipients that they don’t use public roads and
therefore should not pay the tax is simply not credible.
If Australia is serious about its climate commitments, fiscal sustainability
and our generational opportunity to lead as a green energy and exports
superpower, this handout that pays polluters to pollute is overdue for
substantive reform.
CEF proposes that companies be required to reinvest any fuel tax credits above
a $50 million annual cap into clean energy diesel alternatives, or forgo these
credits (top FTC recipient companies currently claim hundreds of millions of
dollars in credits annually). Fortescue, a major beneficiary of fuel tax
credits, fully supports our proposal.
This year alone, the scheme – a top 20 budget expense – is costing the public
purse $11 billion, and this will climb to over $13 billion a year by decade’s
end.
Since the fuel tax reforms in 2007, the scheme has cost taxpayers over $122
billion. By 2030, the bill will hit $184 billion. By contrast, according to the
Australian Energy Market Operator (AEMO) the total capital cost of Australia’s
transition to a decarbonised, renewables-based electricity system is just $122
billion.
In other words, in the 23 years from 2007 to 2030, Australia will spend 50%
more on the diesel fossil fuel subsidy than on transitioning our energy system
to renewables by 2050.
The biggest beneficiary is the mining sector, which has received $57.5 billion
in rebates since the scheme began. Absent reform, this figure is set to exceed
$84 billion by 2030."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
