Fortescue's response to the 2026-27 Federal Budget

Attributed to Fortescue Metals and Operations CEO, Dino Otranto: 

Fortescue welcomes the Federal Government’s move to increase the R&D Tax Incentive expenditure cap to $200 million. If Australia wants to stay competitive, we need to back companies investing in new technology, new industries and Australian innovation.

Fortescue is investing heavily in research and development as we decarbonise our Pilbara operations and advance green iron and zero emissions technologies. That takes serious long-term investment and commitment.

We’re already investing above the current $150 million cap, which shows the scale of what is needed to transform heavy industry and create new industries here in Australia.

An increased cap will give companies more confidence to keep investing in high-value R&D in Australia – which means more skilled jobs, stronger industrial capability and more opportunity for Australia to lead in the global energy transition.

But while support for R&D is welcome, it’s disappointing the Budget did not address the Diesel Fuel Tax Credit at a time when Australians are under real cost-of-living pressure.

Australians are feeling the impact of volatile global fuel markets every day – paying more at the bowser and experiencing rising cost-of-living pressures as a result.

Now is the time for Australia to show real leadership and stand up for a fairer approach to fuel tax settings.

Billions of dollars continue flowing through a tax credit that overwhelmingly benefits some of the country’s largest and most profitable companies. That’s becoming harder to justify when Australians are doing it tough.

We recognise the Government is managing a range of economic pressures and priorities. But this issue shouldn’t keep getting pushed to the side.

Australians expect sensible policy settings that are fair and focused on the future. The conversation about reforming the Diesel Fuel Tax Credit needs to continue until reform is delivered, and Fortescue will continue to advocate for this reform.