Critical Times

ACF’s executive director has called on the Federal Government to use this year’s Budget to do away with tax breaks that encourage greenhouse pollution and cost the taxpayer more than $7.8 billion a year.

In a speech to the National Press Club today Don Henry said the Government should restructure the fuel tax credits scheme (costing $4.9 billion a year), and do away with the tax break for aviation fuel ($900 million) and the fringe benefits tax concession for personal use of company cars (more than $2 billion a year by 2009-10).

“The fringe benefits tax break for company cars invisibly chugs out just as much greenhouse pollution every year as a medium-sized coal-fired power plant, only the fringe benefits tax break for company cars doesn’t produce any energy. It’s just a dead weight on the economy, the Budget and the environment,” Mr Henry said.

He said the largest fossil fuel subsidy by far, the fuel tax credit scheme, cost Australian taxpayers $4.9 billion a year.

“It means that if you are a hard-working commuter in Sydney’s western suburbs or Melbourne’s south-eastern growth corridor or outer Brisbane, with little or no access to reliable public transport, you pay 38 cents per litre in tax on the petrol you need to get to work. But if you are the world’s wealthiest mining company, for example, or a logging company destroying Australia’s old growth forests, you pay not a single cent in tax for the diesel you use for your off-road mining and logging operations.”

Mr Henry said the Federal Government should invest the savings in securing a clean and prosperous future for coming generations. He proposed three main areas of investment: energy efficiency, better public transport and cleaner cars.

“I urge the Government to look at establishing an Australian Environmental Sustainability Reform Agenda, agreed and implemented through COAG, and based on targets for all of our major environmental challenges.

“The time to tackle the environment crisis is now and it starts with this Budget.”