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Fixing the Diesel Rebate

Burning fossil fuels contributes directly to climate change, creating emissions that fuel extreme weather, rising sea levels and the destruction of crops and ecosystems.

Australia’s diesel rebate encourages major mining companies to keep burning fossil fuels by allowing them to claim back millions in tax credits. Every dollar they save comes at a cost to our environment, economy, and public health. 

We've got a solution that will motivate major polluters to decarbonise while protecting small and medium businesses.

Read the report

A Simple Fix that Only Impacts the 10 biggest Mining Companies in Australia

We propose a cap on the diesel rebate of $50 million per company, per year. 

Farmers, fishers, and small miners and explorers will not be affected. 

If your business claims less than $50 million in rebates, this change won't impact you. Instead, it helps keep the system fair and stable, and protects these industries from bigger changes in the future.

Why This Change Matters

Australia has committed to reaching net zero emissions by 2050. But we can’t get there while we encourage our biggest industrial polluters to keep burning fossil fuels.

By capping this rebate we can redirect funds into clean and practical solutions like mine electrification and renewable energy. This helps to safeguard our environment, protects public health, and makes our economy more resilient.

Capping the diesel rebate at $50 million:

  • Leaves farmers, fishers, and small businesses untouched

  • Unlocks investment in clean energy and sustainable jobs

  • Makes sure major polluters contribute their fair share

  • Helps Australia stay on track to reach net zero by 2050

A Boost for Clean Energy and Regional Jobs

Since these diesel credits come from the Australian Government Budget, capping them would save public funds. We recommend redirecting these savings to a Transition Tax Incentive that supports cleaner mining, renewable energy projects, and low-emissions equipment.

It’s good for the environment and a boost for clean energy businesses.

This change would attract more investment into renewables industries, creating new jobs and helping grow regional communities. It’s a smart way to keep Australia’s industries strong and ready for the future.

Read the Report