SENATOR THE HON BRIDGET MCKENZIE
SHADOW MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT
LEADER OF THE NATIONALS IN THE SENATE
SENATOR FOR VICTORIA
14 June 2024
MEDIA RELEASE
LABOR MUST RULE OUT AXING THE DIESEL FUEL REBATE IN BOWEN’S 2030 NET ZERO TRANSPORT ROADMAP
The Prime Minister must rule out further cuts to diesel fuel rebates relied on by truckies, farmers and miners in Federal Labor’s rush to cut emissions in the transport sector.
Shadow Minister for Infrastructure, Transport and Regional Development, Senator Bridget McKenzie said diesel fuel rebates are at risk as the Albanese Government focuses on the transport sector to meet the gap in its 43 per cent 2030 emissions reduction target.
“Australia needs its truckies, but the sector is coming under increased focus to reduce emissions because delays to Labor’s aggressive renewables rollout means the Albanese Government has no hope of meeting their 2030 emissions targets,” Senator McKenzie said.
“Labor is currently consulting on a plan to replace diesel fuelled trucks with battery-electric and hydrogen vehicles, however their plan identifies technology gaps and the high cost of switching from diesel as barriers to transition.
“Even renewable diesel options for the trucking industry are estimated by the Government to be twice as expensive as standard diesel fuels, and Labor is now consulting on potentially mandating these higher cost fuels in the middle of a cost-of-living crisis.
The Transport and Infrastructure Net Zero Consultation Roadmap suggests ‘incentives’ will be needed to make zero and low emissions alternatives economically viable for the transport sector.
“The easy option to Labor to reduce the price gap would be to abolish the diesel fuel rebate, but that would be disastrous for industry and the nation.
“There has been an orchestrated campaign in Canberra over the past two years trying to undermine the diesel fuel rebate system which is so instrumental for our road transport, farming and mining businesses,” Senator McKenzie said.
“Think tanks like the Australia and Grattan institutes pumping out reports that are being wielded by Greens and Teal members in Parliament to put pressure on the Albanese Government to wind back or abolish diesel fuel rebates.
“Labor’s transport net zero roadmap has asked for and will no doubt receive dozens of suggestions calling for the rebates to be axed or reduced in effort to help the rush to Net Zero, but at great cost to industry.
“Labor has form on this topic, with the Albanese Government’s truckie tax already eroding the value of fuel tax credits our transport businesses can claim.
“If Labor buckles to pressure from the Greens and Teals to abolish diesel fuel rebates as a climate change measure, this would not only hit truckies and freight businesses, our miners and farmers would also be forced to pay tax for their off-road use of fuel,” Senator McKenzie said.
“The Grattan Institute estimate $4 billion could be stripped from industry annually under their plan to remove diesel fuel rebates whereas the Greens and others are seeking larger cuts up to $10 billion per year.
“The Prime Minister, Climate Change Minister Bowen and Transport Minister Catherine King must provide a rock solid guarantee the Labor Party will not reduce or remove diesel fuel rebates over the next six years as we head to 2030.”
The Canberra attack on diesel fuel rebates:
- The Greens
- Kate Chaney MP – Teal MP for Cowan
- Dr Sophie Scamps MP – Teal MP for Mackellar
- Allegra Spender MP – Teal MP for Wentworth
- Kylea Tink MP – Teal MP for North Sydney
- Zoe Daniel MP – Teal MP for Goldstein
- Senator David Pocock – Teal Senator for the ACT
- Australian Conservation Foundation
- Australia Institute
- Grattan Institute
ENDS.