Green groups warn climate courage missing from budget
Environmental groups say climate gains from bike lanes and batteries have been dwarfed by a failure to generate fossil fuel revenue and rein in off-road diesel credits.
The run-up to Tuesday’s federal budget has been dominated by a campaign to increase taxes on gas exports and pressure to roll back the fuel tax credit scheme.
The Australian Conservation Foundation criticized the lack of action in controversial policy areas.
“This is a budget of thinly veiled fossil fuel subsidies that funnel public money to the coal, oil and gas giants,” said climate policy adviser Annika Reynolds.
“Currently, Australians are calling on the government to fairly tax gas exports and use the money for cost-of-living relief and nature restoration.”
The oil resources lease tax is the mechanism for taxing profits from fuel extraction.
The government effectively ruled out gas tax changes ahead of the budget; LNG exports were reportedly used as leverage in negotiations with trading partners to support liquid fuel supplies.
But Labor will mandate the creation of a gas reserve on the east coast to reserve product for the domestic market.
Support is also increasing to reduce the fuel tax credit scheme used by miners and farmers who run diesel vehicles and equipment on private land.
Limiting loans has been billed as a way to insulate small businesses, save money and encourage big miners to buy electric trucks instead of diesel.
The plan is set to cost $10.7 billion in the next fiscal year and grow steadily through 2030, according to budget documents.
“The government has shown admirable courage in reforms to improve youth access to housing,” Greenpeace Australia Pacific CEO David Ritter said. he said.
“He must show the same courage in defending fossil fuel interests and choosing affordable energy and a secure future for us all.”
Tuesday’s budget included $7.2 billion for a continuation of the cheaper home battery plan and $500 million for an active transportation fund to support bike lanes and other infrastructure, according to advanced estimates.
More than $110 million will go to a native species conservation program, and the money will also be earmarked for an environmental watchdog.
The green manufacturing policy network Future Made in Australia has been reformed with extra funding for clean fuels and cuts to the hydrogen grant scheme.
Climate Action Farmers welcomed the funding to help reduce emissions and protect nature, but warned there was not enough progress on resilience or adaptation.
Chief Executive Verity Morgan-Schmidt said: “This comes at a time when the national climate risk assessment warns of rising costs from climate-induced disasters.” he said.
