<
https://reneweconomy.com.au/huge-coal-mines-diesel-tax-credits-could-amount-to-more-than-original-cost-of-project-critics-say/>
"One of Australia’s largest proposed coal projects could absorb more in diesel
tax exemptions in its lifetime than the initial sum sunk into its construction,
environmental groups say.
About $44 million a year would be rebated to Whitehaven for its Winchester
South coal mine under the fuel tax credit scheme, which is facing renewed
scrutiny for its drag on public finances and decarbonisation goals.
The tax exemptions were introduced decades ago when the Commonwealth first
introduced fuel taxes, based on the principle that off-road users should be
spared from the costs of maintaining infrastructure.
Fuel tax is no longer ring-fenced for road repairs, however, and critics argue
the scheme has become too costly – clocking in at roughly $11 billion a year –
and keeping diesel users hooked on the emissions-intensive fuel.
In a first for Lock the Gate, the anti-coal and gas campaigner has seized on
the fuel tax credits available to a specific coal mine as a line of critique.
Whitehaven’s proposed metallurgical and thermal coal mine in Queensland’s Bowen
Basin is already facing legal challenge from other conservation groups worried
about native species, water sources and the climate, including both burning the
coal and the methane that tends to escape as it’s dug up.
Lock the Gate’s focus on fuel tax credits follows a push to reform the scheme
ahead of the Labor government’s economic reform summit.
Notably, the Australian Council of Trade Unions called for a $20 million cap on
diesel tax exemptions ahead of the productivity talks, hot on the heels of
Climate Energy Finance’s suggestion of a $50 million ceiling on annual fuel tax
credits per company.
The think tank’s model would allow businesses to claim rebates beyond the cap
if they reinvested the funds into decarbonisation, such as electric trucks.
Director Tim Buckley said the “cap-and-reinvest” model had been well-received
in Canberra and would only capture big miners, with farmers and small
businesses well below the threshold.
Without reform, he said mining companies had little incentive to shift away
from diesel – responsible for 17 per cent of Australia’s annual emissions – and
embrace fast-advancing clean alternatives."
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
