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An end to fossil fuel subsidies

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Christine Milne 18 Jun 2012

Greens Leader Christine Milne asked the Government today in the Senate why they haven't taken the next step to end fossil fuel subsidies entirely - and it's well worth watching her questions and the Government's response below (you can also read the transcript here).

Currently, mining companies get back 38c in federal tax rebates for every litre of diesel they burn - that adds up to $2 billion, every year, which could be so much better spent in public schools or in our hospitals. The federal Budget shouldn't be paying the fuel bill for wealthy mining companies - especially not when it encourages them to create more of the pollution that drives climate change.

The Clean Energy Act starts a change for the better in this year's federal Budget: we successfully negotiated for this fossil fuel subsidy to be cut by 6c for every litre from July 1, saving the federal Budget hundreds of millions of dollars a year, and taking the federal foot further off the accelerator when it comes to burning fossil fuels. This comes on top of our major win last year, which ended $1 billion of subsidies over the forward estimates that encouraged companies to burn more petrol than they needed.

Cutting this absurd tax rebate is a good step along the path to ending all fossil fuel subsidies. That's just one of the ways July 1 will bring change for the better. For more, check out our other updates.

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