Farmers’ access to the diesel rebate must be protected, but agriculture should never be used as a shield to protect the interests of other industries, Farmers for Climate Action said today.

South Australian pastoralist and station owner, Ellen Litchfield, said, “Farmers should be guaranteed access to the diesel fuel rebate, but discount diesel should be capped for the biggest mining companies to protect the financial sustainability of the rebate.”

FCA CEO Verity Morgan-Schmidt said, “FCA focuses on farmers, and farmers should keep getting the diesel fuel rebate, 

“It’s of vital importance to our diesel-dependent sector,” Ms Morgan-Schmidt said.

“The diesel fuel rebate was created for the farmers who grow our food, but now mining companies are getting 45% of it, with farmers only getting 12%. We need to cap this rebate at $50 million per company to keep it sustainable for farmers well into the future. Every Australian taxpayer is effectively paying hundreds of dollars a year to this rebate – we need to be responsible with it.”

The diesel fuel rebate is paying out around $13B a year, according to research by Climate Energy Finance, with the biggest claimants being:

BHP $600M+, 

Rio Tinto $416M, 

Fortescue $300M+, 

Hancock Prospecting $128M

A recent report commissioned by FCA showed that the shift towards electric machinery was already happening, with trucking and mining leading the way. However, any policy to accelerate the shift needs to protect farming businesses.

The diesel fuel rebate gives farmers and miners access to near-tax-free fuel, based on the idea the fuel tax funds roads, and that these industries do not use public roads. However, the fuel tax actually goes to general revenue with no requirement to spend it on roads.

“Capping the diesel fuel rebate at $50M means every single farmer continues to receive it. A $50M cap is a sensible, proactive step to keep the diesel fuel rebate sustainable and make sure farmers keep the credit forever.