Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

The government thanks the opposition for the bipartisan approach that they have taken to this particular issue. It has long been the case that firms and individuals have been exempted from fuel tax—since the 1950s in fact—for off-road use. This recognised at the time that the excise was to be set aside for road construction and maintenance and mining firms were eligible for the exemption. Under current arrangements, generally all fuels used off-road for all business purposes are effectively free of fuel tax. Firms and individuals who run a business—whether manufacturing, construction, primary production, mining or commercial power generation—are able to remove the incidence of tax on a crucial input. This approach avoids destroying business investment decisions and behaviour that would occur if these business inputs were taxed. Denying mining and quarrying businesses access to the fuel tax credits would have a major impact and distort investment decisions in this sector, leading to increased production costs, which could lead to the closure of some mines.

The CHAIRMAN: The question is that Australian Greens amendment (1) on sheet 7627 be agreed to.