Greens proposal would hit recovery and jobs

The Greens’ misrepresentation of the Fuel Tax Credit (FTC) as a subsidy on diesel and their policy approach will cost regional jobs across many industries including farming, fishing, mining, construction and tourism.

The FTC is not a subsidy and it will not change the price of diesel.

Similar to the GST, the FTC scheme removes additional tax from a vital business input.

Fuel tax credits are not unique to Australia and are included as a business input in other countries including the United Kingdom, Canada and the United States.

Any move to reduce eligibility for the FTC scheme would introduce a tax distortion by imposing a significant levy on industries that are reliant on diesel fuel to generate power and operate heavy machinery off road or in heavy on-road transportation vehicles.

Fishing fleets, tourism craft, farming machinery, mining and resources vehicles, forestry, ferries and tug boats should not pay a road tax. They are the powerhouse of the Australian economy, doing the work in regions that all Australians need.

Australian mining is a major and growing contributor to jobs, investment and communities and has kept Australia’s economy and the communities in which it operates strong during the COVID-19 pandemic.

Resources export revenue reached a new record high of $352 billion in 2021 and 68 per cent of total Australian export revenue and pays its fair share of taxes and royalties.

The decadal (FY 2011-12 to FY 2020-21) contribution to the economy is stellar – $2.1 trillion in resources export revenue, $246 billion in mining wages, 21 per cent of Australia’s GDP growth, $132 billion in company taxes and $106 billion in royalties.

In 2021, the industry continued to pay the highest average wages, the most company tax, delivered the most export revenue and was critical to supporting regions and communities including providing 1.1 million jobs in Australia supported by the mining, mining equipment, technology and services sectors.

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