Decarbonisation is being held back
This isn't just a financial loophole — it’s a climate liability. Every dollar saved by industry is a cost shifted onto future generations.
Heavy emitters need pressure to change
Australia's goal is to reach net zero emissions by 2050. This won't happen while our tax incentives reward burning fossil fuels.
Some large mining companies, like Fortescue, are already trying to decarbonise - but for major change to happen, everybody needs to be on board.
The DFTC needs to change.
Reform is the Way Forward
We recommend setting a $50 million cap on the DFTC. This will protect smaller businesses from high costs, while making sure the biggest polluters pay their fair share. All additional funds should be converted to a Transition Tax Incentive, paid to the taxpayer, for investment in mine electrification and decarbonisation.
This change sends a clear message. It turns the DFTC from a confusing and inconsistent policy into a strong push for decarbonisation. No confusion. No empty promises. Just real action.
Reforming the DFTC is the smart choice for our economy and for our environment.
