Andrew 'Twiggy' Forrest, the billionaire mining magnate, has called on Prime Minister Anthony Albanese to abolish a multi-billion-dollar fuel tax credit scheme, even though his own company, Fortescue, reaps substantial benefits from it. Speaking at the Smart Energy Council conference in Sydney, Dr. Forrest described the fuel tax credit as a 'long-running joke' that hinders the mining industry's transition to electrification and clean energy.
Call for Redirecting Funds
'What we need is help right now for the struggling mums and dads of Australia; that $2.5 billion doesn't need to go to people who just made $35 billion last year,' Forrest told reporters. He argued that the scheme is an unfair burden on the budget and keeps industries dependent on diesel, a fuel with high emissions and vulnerability to supply chain disruptions, as highlighted by the Middle East conflict.
Details of the Tax Credit Scheme
The fuel tax credit program provides tax rebates to businesses for diesel used in vehicles, machinery, and equipment on private land. It is claimed by sectors such as mining, transport, farming, forestry, and fishing, costing approximately $11 billion annually. Critics say the credits are no longer tied to road maintenance costs and should be reformed.
With the 2026 federal budget approaching, the policy faces renewed scrutiny. The Australian Council of Trade Unions and the Labor Environmental Action Network support a less generous scheme. Fortescue, one of the largest beneficiaries, has been actively advocating for a reduction in the credits as part of its aggressive decarbonisation strategy, aiming to power its trucks and machinery with renewable energy instead of diesel.
Fortescue's Decarbonisation Goals
The iron ore producer claims to be on track to achieve 'real zero' emissions by 2030, meaning actual cuts without relying on offsets. However, Minerals Council of Australia chief executive Tania Constable countered that Forrest could voluntarily forgo the tax incentives. 'If Dr. Forrest thinks that reducing tax credits is so important, he has always the opportunity to forfeit a fuel tax credit and make a donation directly to the tax office,' she said.
Government Stance
Federal Resources Minister Madeleine King has stated that the government is not considering changes to fuel credits in the 2026 budget, defending their use by farmers, miners, and tourism operators who do not use public roads.
