The Taxpayer Toll For Australian Government Support For Fossil Fuel Industries - $31,020 Per Minute, Day In And Day Out
Australian federal and state government subsidies that encourage fossil fuel use and help drive the climate crisis will reach $16.3bn this year after leaping by nearly 10%, according to a new analysis. It found federal and state governments will pay or forgo the equivalent of $31,020 each minute in 2025-26 to subsidise companies producing and using coal, gas and especially oil, mostly in the form of diesel.
The annual analysis by progressive thinktank the Australia Institute found fossil fuel subsidies were now increasing at a more rapid pace than funding for the national disability insurance scheme (NDIS), which has been criticised in the past for cost blowouts.
Using government budget papers and announcements, the institute said national support for fossil fuels was expected to grow by 9.4%. The cost of the NDIS was forecast to rise by 7.6%.
The biggest subsidy was the federal government’s fuel tax credit scheme, which refunds mining companies, farmers, tourism operators and other industries the excise paid on petrol and diesel.Most consumers pay an indexed excise – currently 52.6c a litre, and increasing every six months – when filling up their car. Businesses that use the fuel to run vehicles on private roads, drive heavy vehicles on public roads or buy diesel to run machinery qualify for a rebate. The scheme was forecast to cost $10.8bn this year, up from $10.2bn last year. The credit scheme has been maintained under Labor and Coalition governments and is backed by lobby groups such as the Minerals Council of Australia. Supporters say fuel excise is collected to fund roads and businesses that use the fuel to run cars and equipment on private roads and properties should not have to pay it.
Critics of the scheme, including the Australia Institute, say the overwhelming majority of fuel excise contributes to general budget revenue and is not explicitly linked to road building and maintenance. They say the refunds encourage greater burning of fossil fuels and work against policies that incentivise businesses to embrace lower emissions vehicles and other technology.
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https://www.theguardian.com/environment/2026/mar/11/australian-governments-subsidising-fossil-fuel-use-by-more-than-30000-a-minute-analysis-finds