Australian Unions are supporting key elements of Productivity Commission proposals designed to drive more investment into cheaper and cleaner energy.
The Productivity Commission has recommended that the Fuel Tax Credit Scheme should be overhauled to substantially reduce the size of the tax credits flowing through to big business.
Australian Unions are calling for capping the Fuel Tax Credit Scheme so that no company can claim more than $20 million a year in fuel tax credits. This would stop unnecessary billions in taxpayer dollars from flowing to big miners, while keeping the benefits in place for smaller operators.
This measure would generate at least $14 billion in revenue over the next three years, a part of which could be used to help heavy vehicle users decarbonise their fleet, through buying electric and low-carbon vehicles.
Australian Unions also support the Productivity Commission’s recommendation for a streamlined, accelerated development approvals system to speed up the approval of more renewable energy projects.
Unions will go into this month’s Economic Reform Roundtable advocating for a new national approvals system for renewable energy and transmission projects to progress them faster to a clear ‘yes’ or ‘no’ determination, including by ensuring workers and communities get their fair share of the benefits.
The process would reduce the long periods of uncertainty regional communities face while waiting for new jobs in renewable energy, particularly those on the front line of the energy transition.
This reform is essential for meeting Australia’s climate goals under the Paris Agreement, and for powering burgeoning clean industries like green metals, critical minerals, and renewable manufacturing that have the potential to create hundreds of thousands of new jobs.
Unions also support new production tax incentives for green iron and green alumina projects, more R&D support for Future Made in Australia industries, a network of regional industrial innovation precincts, and requiring the Government’s specialist investment vehicles to better support regional communities in transition.
Quotes attributable to ACTU President, Michele O’Neil:
“Australian Unions want to see living standards rise for everyone, and increasing productivity is one way to achieve this, if the gains are shared fairly.
“Good productivity measures will see everyone’s living standards rise through investing in people, research, innovation, skills and technology.
“A faster, fairer path towards a net zero economy, including an improved development approvals process, which guarantees shared benefits with workers and communities, can take us a long way down the road.
“Ending the rorting of the Fuel Tax Credit Scheme is also critical and some of the proceeds should be diverted to support truck owners transitioning to electric trucks, renewable diesel or hydrogen-fuelled vehicles.”
