What is Diesel Fuel Tax Credit?
Under the Fuel Tax Credit scheme, businesses can claim back the fuel tax they pay on diesel. For Australia’s largest mining companies, that can mean hundreds of millions of dollars in refunds every year.
Recent disruptions have revealed Australia’s over reliance on imported fuel. In 2025 we used 33bn litres of diesel, with 30bn litres of that being imported. This has left us exposed to supply shortages and price volatility which is not in the national interest.
Burning fossil fuels contributes directly to climate change, creating emissions that fuel extreme weather, rising sea levels and the loss of crops and ecosystems.
We want to see incentives for diesel use removed for the top 18 companies in mining, and that money directed to where Aussies need it most.
A Simple Fix
We propose a cap on the diesel tax refund of $50 million per company, per year.
This change targets around 18 of Australia’s biggest companies in mining – not farmers, fishers small miners or truckies.
If your business claims less than $50 million per year in refunds, this change wouldn’t impact you. It would keep the system fair and stable, and protect these industries from bigger changes in the future.
Why This Change Matters
Australia needs economic security as well as clean energy.
But we can’t get there while incentivising our biggest industries to keep burning imported fossil fuels.
By capping this refund, we could redirect funds to help with cost of living or into clean and practical solutions like mine electrification and renewable energy.
In simple terms, this change would, strengthen the economy, help ordinary Australians and redirect investment into cleaner, locally produced energy.
Capping the diesel tax refund at $50 million:
A Boost for Clean Energy and Regional Jobs
Capping them would free up public funds – money that could be reinvested into Australia’s future.
It could also help ease cost of living pressures, supporting measures like fuel relief while building a more sustainable energy system for the long term.
This is about shifting investment from diesel to what comes next.
More capital into renewables.
More jobs in regional communities.
More momentum behind industries that are built to last.
