Fortescue is launching a national advertising campaign calling for a reform of the Australian government’s diesel tax handout, which is “delivering excessive benefits to a small number of large mining companies at the expense of a fairer and more secure energy system for Australians”.
The campaign would roll out in Australia on April 22.
Fortescue, itself being one of the largest recipients of fuel tax credits, is calling for the introduction of a $50-million yearly cap for each company, arguing that reform is both fair and economically responsible.
Fortescue metals and operations CEO Dino Otranto notes that the current system had drifted far from its original intent.
“We have made our position clear directly to government, but this issue goes beyond industry – it affects every Australian taxpayer.
“That’s why we are taking this campaign to the public. Australians deserve to understand that billions of dollars are being paid out each year in a diesel tax handout to a small number of very large companies,” Otranto says.
This campaign highlights the imbalance at the heart of the current policy, contrasting the cost-of-living pressures faced by everyday Australians with the “billion of dollars” in tax credits flowing to Australia’s mining industry.
The advertisements are centred on a nurse struggling to pay her household bills, drawing a direct comparison between suffering Australians and large companies receiving billions in diesel tax credits.
Further, the campaign focuses on Australia’s largest mining companies, which receive a significant share of an estimated $11-billion returned to businesses each year under the Australian Fuel Tax Credit Act, effectively subsidising the use of imported diesel.
Otranto says that the diesel tax handout should primarily focus on supporting essential industries as opposed to delivering outsized benefits to large mining companies.
At present, he says that this money could be well used to lower energy costs for households and businesses.
“At a time when families are cutting back and small businesses are doing it tough, it is reasonable to ask whether this is the best use of taxpayer money. Instead, it is being handed back to a small number of large companies to keep diesel cheap,” Otranto says.
Meanwhile, households and small businesses will return to paying fuel excise in full when the government’s temporary halving of the excise ends on June 30.
Analysis by think-tank Climate Energy Finance reveals the 18 largest mining companies received $3-billion in fuel tax credits in 2024/25. However, a $50-million market cap would have delivered estimated budget savings of $2-billion – with savings expected to grow significantly over time.
Otranto also notes that Australia has made itself dangerously reliant on imported diesel, leaving its economy exposed to global shocks and supply disruptions.
He says that while the Australian government has adopted several good policies that support energy security, they have also inherited a deficient policy that will get worse the longer it is left unchecked.
This leaves Australia more dependent on overseas fuel amid the current geopolitical tensions.
“It makes no sense to keep subsidising that dependence. Capping that diesel tax handout is a practical step toward restoring energy security and building a fairer, more resilient, self-reliant system,” Otranto states.
Fortescue is urging the Australian government to consider the reform as part of the upcoming May budget, with savings rather being redirected toward lowering energy costs, easing cost-of-living pressures, essential services and investment in Australia’s future energy systems.