A coalition of Australia’s primary and regional industries has unified to launch a new campaign, hitting back at environmental activist groups demanding cuts to the federal Fuel Tax Credit scheme.
Dubbed Hands Off Our Fuel, the initiative was unveiled by the newly formed Fuel Tax Credit Alliance. The group represents peak bodies across the farming, mining, construction, freight, tourism, and forestry sectors, which collectively support millions of regional jobs.
The campaign aims to dismantle claims by climate activists that the credit acts as a fossil fuel subsidy. Instead, the alliance argues the mechanism is a long-standing structural tax offset designed to ensure off-road businesses are not unfairly penalised by the standard fuel excise.
“Fuel Tax Credits are not a subsidy; they simply refund a road tax on fuel that is not used on roads,” the alliance said in a joint statement.
“Some groups are trying to claim this as a handout, when it’s just about being fair to the businesses that keep Australia going.”
Industry bosses warned that stripping or capping the credits would trigger devastating financial shockwaves through supply chains, worsening the cost-of-living crisis by pushing up everyday shelf prices for food, timber, housing, and freight.
Master Builders Australia CEO Denita Wawn warned that adding costs to the building supply chain would artificially inflate the cost of constructing new dwellings, which has already jumped 50 per cent since the pandemic.
Meanwhile, Australian Grape and Wine CEO Lee McLean highlighted that regional wine growers are currently battling historically low grape prices and immense financial pressure.
Minerals Council of Australia CEO Tania Constable echoed the sentiment, stating that further taxation would compromise the nation’s economic resilience.
“You can’t keep piling on more taxes at a time when Australia relies on a strong economy and a strong mining sector,” Constable said.
“Enough is enough. Fuel tax credits are fair – and changing them puts at risk the industries Australia depends on.”
