Senate debates

Wednesday, 1 July 2026

Questions without Notice

Fossil Fuel Industry

2:17 pm

Photo of Larissa WatersLarissa Waters (Queensland, Australian Greens) | | Hansard source

The government hands over billions of dollars of public money every year to Australia's biggest and most profitable mining corporations through the Fuel Tax Credit scheme. It's cheap diesel for big polluters—fossil fuel subsidies while everyone else has to tighten their belts in a fuel crisis. It's public money to make climate pollution worse. It undermines the climate gains made by renewables. And it disincentivises electrification of heavy industries. The chair of the Climate Change Authority, Matt Kean, has described this cheap fuel for big miners as 'insane'. The OECD has called for its elimination. Fortescue is running a national ad campaign calling for reform. Climate groups, the ACTU and Labor's own Environment Action Network all say it's got to go. In a climate, fuel and cost-of-living crisis, why is this government giving billions in handouts to the most profitable and polluting industry on earth?

2:18 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

I thank Senator Waters for the question, and I acknowledge this is a long-held view of the Greens political party on the diesel fuel tax rebate. Our tax policies have been outlined in the budget papers. The ones that we have focused on in this budget have been around doing tax reform—big tax reform—in the areas of negative gearing, capital gains tax and trust reform. In terms of all of those other areas that Senator Waters identifies around climate, around energy and indeed around fuel, our focus has been on implementing our climate policies and seeing the big change that we're seeing across our economy and actually delivering that, which we are doing. We're not only supporting jobs across the economy but also putting downward pressure on energy bills, and we'll continue to focus on that. We'll continue to engage in discussions as we need to in this place. It has been a long-held view of the Greens to end that rebate. The government has a different view. We have not changed our view on that.

In relation to energy, in relation to climate, in relation to renewables—I mean, look at what's happening in terms of renewable energy in this country. It's reducing our reliance on fossil fuels. This government is focused on delivering the change that will power a renewable energy future in this country. That's the work that Minister Bowen and other ministers are focused on, and we are seeing that change happen. This government welcomes that, and we will continue to work across the board to make sure we can deliver the transformation that's required across the economy.

Photo of Sue LinesSue Lines (President) | | Hansard source

Senator Waters, first supplementary?

2:20 pm

Photo of Larissa WatersLarissa Waters (Queensland, Australian Greens) | | Hansard source

This government is handing $627 million to BHP, Australia's most profitable company, and $416 million to Rio Tinto at the same time as you intend to kick 241,000 people off crucial, life-changing NDIS support. Why are you prioritising mining company handouts when disabled people are being asked to accept cuts?

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

I understand the political kind of argument around trying to link those two things, but they are quite different. There is a diesel fuel tax credit scheme that has operated for as long as I can recall, and then there are sensible and needed changes that we are making to the NDIS to secure its future and to ensure that it is sustainable into the long term. They are not linked. The government doesn't see them as linked. We are making those changes to the NDIS because it cannot continue to grow at the rate it is growing. The NDIS will continue to grow, as we know. What we're trying to do is slow the growth of the scheme. A scheme that was originally intended to be $13 billion a year is now over $50 billion a year and growing. If we do nothing about it, it will continue to grow in excess of $70 billion a year. It is not sustainable.

Photo of Sue LinesSue Lines (President) | | Hansard source

Senator Waters, second supplementary?

2:22 pm

Photo of Larissa WatersLarissa Waters (Queensland, Australian Greens) | | Hansard source

The budget papers show that, by 2030, Australia will be burning even more diesel than today, diesel emissions will be higher and Australia will be more vulnerable to fuel shocks. How can you be serious about energy security and meeting your pathetic climate targets while continuing to subsidise big polluters with a fuel tax credit scheme?

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

As I said in my original answer, the government has a different view to that of the Greens political party on the diesel fuel tax credit scheme. In relation to the change that's required—and there is a difference between the Greens political party and a Labor government in that we are actually delivering the change. We are actually delivering a transformation of our economy into a renewable energy future. We are doing it. You can stand on the sideline and criticise and complain about it, but the reality is, when you look at what's happening across our economy, we've seen demand for gas come off because we've seen so much investment in storage, in batteries that this government is rolling out and in making sure that people have access to storage for the solar that they have on their roof that we are also supporting. We'll get on with delivering the change, actually doing it, in the interests of the nation while you stand on the sideline and complain. (Time expired)