14/08/2026
Australia's industrial pollution law (aka the 'Safeguard Mechanism') currently allows big polluters to comply with their pollution limits by buying cheap carbon credits, instead of actually cutting emissions.
And at the same time, the top polluters are getting billions back through the Fuel Tax Credit scheme, which refunds a portion of the tax they pay on diesel.
It’s fair enough that the Fuel Tax Credit was designed for vehicles that don’t use the roads - we get that. But it doesn’t seem fair that big profiting corporations are getting so much more out of the system than they’re putting back in.
Last year, the government paid $3.3 billion in Fuel Tax Credit refunds to top polluters, new analysis by Naru Research has found. Those same polluters paid just $150 million to “offset” their pollution under the Safeguard Mechanism. If those numbers hurt your brain: for every $1 they paid under the Safeguard Mechanism, they got $22 back in fuel subsidies.
Big coal corporations care about one thing: profits. They have no incentive to cut emissions because our government systems offer an easy, cheap way around it, while paying them back billions through the Fuel Tax Credit. That's why Naru Research's Tim Baxter has said that Australia's top emitters are being paid to pollute.
While we’re left to shoulder the escalating costs of floods, fires, heat and storms, big coal, oil and gas polluters keep making record profits. It’s time they paid their fair share.
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p.s. The Safeguard Mechanism is currently under review, and we are lodging a submission that will call on the government to tighten pollution limits and drastically limit the use of offsets and credits. Follow us to keep updated on the review.