Australia continues to subsidise fossil fuels, imposing costs not only on the budget but on the climate. This report estimates Australia’s subsidies to fossil fuel producers and major users from all governments totalled $14.9 billion in the 2024–25 financial year, an increase of 3% on the $14.5 billion recorded in 2023–24. This figure equates to $28,381 for every minute of every day of the year, or $548 for every person in Australia. 

Subsidies in the forward estimates have increased from $65 billion to a record $67 billion, a sum 14.2 times larger than the nation’s $4.75 billion disaster response fund. The report calls for cutting back these subsidies as a priority for the next Australian parliament. 

Key points

• Federal Government fossil fuel subsidies reached $12.6 billion, mainly due to the Fuel Tax Credit Scheme which refunds fuel tax to major diesel users.
• Major mining corporations are the key beneficiaries of federal subsidies, with the coal industry receiving $1.1 billion through the Fuel Tax Credit Scheme.
• State governments provided $1.2 billion worth of assistance measures such as cheap access to infrastructure, gas purchase commitments and handouts for research and development.
• Fossil fuel subsidies from most state governments are declining, or at least not growing.
• The imminent Australian federal election and subsequent state elections represent chances to change the costs associated with fossil fuel-driven climate change.