FARM ONLINE | Farmers, Nats bristle at Labor's climate czar call to end diesel rebates

Fuel tax credits for farmers are in the sights of the Climate Change Authority, which is pushing for industry electrification.

Farm Online reported that the agricultural industry and National party had voiced concerns the push to remove the rebate ignored a lack of contribution to public roads by electric vehicle users.

Grain Producers Australia chief executive Colin Bettles said he would welcome the opportunity to discuss the subject, including how proposals around diesel fuel taxation can be framed in public debate, with CCA chair Mr Kean, and to do so jointly with CCA member and former National Farmers' Federation president Fiona Simson.

"Fuel tax credits are a mechanism to reduce the imposition of road use excise and duties levied on the fuel used by grain producers off-road," he said.

"Diesel is a vital farm input to operate farms efficiently and provide affordable food for consumers. None of our key international competitors levy fuel taxes on agriculture or mining - any removal or reduction would devastate producers' ability to remain competitive.

The Fuel Tax Credit Alliance, whose membership includes the NFF, Minerals Council of Australia, the National Irrigators' Council, Canegrowers and the Australian Forest Products Association, has been at pains to point out that the rebate is not a subsidy or "tax break" but a long-standing correction to prevent a double tax on off-road use.

"Unfortunately, this argument seems to perpetuate in the absence of key facts, at different times, during public debates, placing agriculture needlessly in the firing line," Mr Bettles said.

He also said that, given grain producers are feedstock providers, GPA backed a well-designed, balanced policy that would incentivise increased production and secure a local market for the supply of lower-carbon liquid fuels, such as biodiesel and Sustainable Aviation Fuels.

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