New research from the Australia Institute has found that state and federal governments provided $14.5 billion in subsidies to fossil fuel producers and major consumers in 2023-24 – the equivalent of $27,581 for every minute of every day, or $540 for every person in Australia.
The analysis finds that over the forward estimates the Federal Government has budgeted $54 billion for fossil fuel subsidies, five times the amount it has committed to its key housing policy, the $10 billion Housing Australia Future Fund.
“Budgets are about choices. This research reveals Australian state and federal governments are budgeting for more fossil fuel use and more fossil fuel production, not less,” said Rod Campbell, Research Director at the Australia Institute.
“The magnitude of these fossil fuel subsidies overshadows government claims about climate action. Our state and federal governments are failing to implement even the most basic climate policy – cutting fossil fuel subsidies.
“Eliminating these subsidies would significantly increase government revenue to address climate issues while also reducing emissions. If governments collected this foregone revenue, it could instead look to address housing affordability and other cost of living pressures.
“With federal and state elections just around the corner, policymakers have a golden opportunity to realise the benefits of phasing out fossil fuel subsidies.”
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