The government charges road users a fuel excise to fund road maintenance.
Fuel tax credits provide a credit for the fuel excise to businesses, such as farmers who use machinery in paddocks rather than roads.
“The Fuel Tax Credit Scheme is critically important to ensuring Australians continue to enjoy some of the most sustainable and nutritious bread, pasta and grain products in the world,” GrainGrowers chair Brett Hosking said.
“Leading into the October federal budget, we call on the Albanese Government to guarantee the continuation of the Fuel Tax Credit Scheme and support Australian growers.
“The scheme is extremely important to agriculture and recognises the majority of diesel use on our farms occurs away from our roads.
“GrainGrowers’ most recent survey showed 97 per cent of farmers consider the Fuel Tax Credit Scheme generates a positive impact on the sector’s sustainability and profitability.
“At a time when farmers are responding and adapting to climatic challenges, GrainGrowers strongly supports the continuation of the scheme in its current form and is concerned by media reports it may be used as a bargaining chip.
“Any changes to the scheme would result in higher costs and lessen the ability of farmers to produce food and adapt to, and indeed be at the forefront of, Australia’s response to climate change.”
Earlier this year think tank the Australia Institute reported the rebates “don’t come cheap — often costing more than federal spending on the Australian Army or the Royal Australian Air Force”.
It said the the biggest beneficiary of the scheme was the mining industry, followed by the transport, postal and warehousing sector, and then agriculture.