Australia’s Fuel Tax Credits and the debate over fossil fuel subsidies

The Fuel Tax Credits Scheme costs the Federal Budget nearly $10 billion per year and largely benefits iron ore and coal miners. Researchers at the OECD, IEA and IISD describe it as a fossil fuel subsidy. The OECD has called for its elimination. Australian Government and mining industry representatives dispute the use of the term subsidy, but not its cost to government or benefit to miners.