That equates to $31,020 per minute, handed to some of the biggest, most profitable companies in Australia at a time when ordinary Australians are struggling with surging petrol and electricity prices.
Total subsidies to coal mines, gas companies and major diesel users was up 9.4% on the $14.9 billion recorded in 2024-25. By contrast, despite widespread suggestions that its growth is 'unsustainable', the cost of the National Disability Insurance Scheme (NDIS) increased by only 7.6% over the same period.
The biggest fossil fuel subsidy is the federal government's Fuel Tax Credit Scheme, which cost $10.8 billion and mainly benefits multinational mining companies. The government's own budget papers predict the cost of the scheme will increase more rapidly than federal spending on most social services, including disability assistance, childcare subsidies, aged care, and veterans' care.
"Fossil fuel subsidies harm the budget and make climate change worse," said Rod Campbell, Research Director at The Australia Institute.
"Cutting back subsidies like these, which make the community and the climate worse off, are an obvious priority for any government that says it is concerned with the budget bottom line, inequality, or climate change.
"The cost of fossil fuel subsidies is increasing rapidly, growing faster than spending on social services like disability and aged care.
"It makes no sense to be subsidising profitable multinational mining companies while short-changing Australia's age pensioners and those living with disabilities.
"Australian governments have refused to crack down on fossil fuel subsidies, while complaining about the cost of looking after people.
"Change could be coming. Many influential groups are now calling for reform to the worst fossil fuel subsidies, including the ACTU, the chair of the Climate Change Authority, mining company Fortescue and Labor's Environmental Action Network.
"The Australian government itself seems open to reform, joining the Belem Declaration on the Transition Away from Fossil Fuels at the last round of UN climate talks in Brazil. Under this declaration, governments recognise "the need to phase-out inefficient fossil fuel subsidies as soon as possible."
"The Australia Institute has been calling for curbs on fossil fuel subsidies for over 20 years. Hopefully, this year's report will be the last annual analysis of fossil fuel subsidies that finds another record level of assistance to the very activities that are making climate change worse."
