Diesel machinery helps build Australia's wealth and create jobs

A country’s economic competitiveness is measured by its ability to sell goods and services to the rest of the world and compete against goods and services produced overseas.

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Australia’s key economic strengths lie in commodity exports, such as agriculture and mining, and services exports, like tourism.

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About 1.7 billion tonnes of cargo moves across Australian ports, with international exports representing almost 90 per cent of total cargo.

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Scrapping the fuel tax credit scheme would increase industry costs because it adds a tax, fuel excise, on production of these exports. It’s equivalent to a tax hike in industries where diesel is a significant operating cost.

 

Increased costs could not be passed on in the global market in which commodity exporters operate. Instead it would make Australian industries less competitive, weaken investment, outputs and employment.

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It’s not just Australia’s commodity exporters that compete in a global market. Tourism is Australia’s largest services export industry, just ahead of education. Tourism operators face a constant challenge to secure global market share because Australia is a high-cost destination compared with New Zealand and our neighbours in Asia.

 

Tourism operators using diesel fuel off-road would face enormous cost pressures if fuel tax credits were reduced or abolished.

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Fuel is a vital business input for a range of Australian businesses within these sectors.

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It’s important to remember that a number of Australia’s international competitors levy no tax on diesel used in mining or agriculture.

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Limiting or reducing fuel tax credits would not only be devastating for many businesses, it would add significant cost pressures to Australia’s most productive sectors.

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Removing fuel tax credits would amount to a tax on Australia’s key export sectors.

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Diesel machines that doesn't use public roads shouldn't have to pay a diesel road tax.  That's fair.