The Australia Institute's Fossil fuel subsidies in Australia (March 2022) released on 28 March 2022 and RenewEconomy's article on it published on the same day again mischaracterise the Fuel Tax Credit and its application.
Repeating a claim again and again does not make it true.
The credit is not a subsidy, it does not lower the price of fuel paid by users.
There is no cost to taxpayers; it does not equate to spending by governments in other areas.
Just as the GST is rebated on business inputs, the credit removes what is an additional tax on a business input. Budget papers rightly note this for transparency.
Any change to the credit would be an increase in tax.
The repetition of the word subsidy is wrong and misleading.
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