According to a new analysis by The Australia Institute, fossil fuel subsidies in Australia have reached new heights and are set to exceed spending on the country’s fund to help protect against natural disasters.
Federal, state, and territory governments are expected to spend a combined total of $57.1 billion on assisting fossil fuel producers or major users over the next four years, which is an increase of $1.8 billion from last year.
The Fuel Tax Credit Scheme, which is provided to businesses that pay fuel excise, is forecast to cost $7.8 billion in the 2022-2023 financial year, which is more than the $7.6 billion spent on the Australian Army.
The Australia Institute defines fossil fuel subsidies as anything that is provided to fossil fuel producers or major users, including direct financial assistance and tax breaks. The paper’s publication on Wednesday comes after the Northern Territory government lifted its moratorium on fracking, allowing the controversial Beetaloo Basin gas exploration project to move forward. Environmental groups have condemned the decision, while others have welcomed it as a way to address soaring electricity prices and gas shortages in Australia.
The Australia Institute has criticized the decision, citing carbon advisory Reputex’s modeling showing that the Beetaloo Basin will produce up to 1.4 billion tonnes of greenhouse gas over 20 years, which is 2.5 times Australia’s total annual emissions.
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