This is the sixth edition of an annual report on fossil fuel subsidies by Australian state and federal governments, outlining government assistance to producers and major users of fossil fuels in 2025–26.

Key findings

• Growth in fossil fuel subsidies is driven by the federal government’s Fuel Tax Credit Scheme, which cost $10.8 billion in 2025–26.
• Growth of this scheme is expected to outstrip spending on a range of social services including disability assistance, child care subsidies and aged care.
• Fossil fuel subsidies cost Australian governments $16.3 billion in 2025–26, an increase of 9.4% on the previous year. By contrast, the cost of the National Disability Insurance Scheme (NDIS) increased by only 7.6% over the same period.
• Beyond the 2025–26 budget year, total budgeted fossil fuel subsidies over the longer term
  have reached $72.7 billion.
• Fiscal costs are just one impact of fossil fuel subsidies. The other is exacerbating climate change.