Minerals Council launches campaign to defend fuel tax credits

The Minerals Council of Australia is preparing to launch a digital campaign to defend fuel tax credits, escalating a political fight over whether large miners should keep receiving diesel rebates without a cap.

The campaign, branded Hands off our Fuel, is aimed at countering a Labor-linked push to limit the rebate for major mining companies to $50 million a year. The council says the effort is intended to rebut claims that the scheme amounts to a fossil-fuel subsidy.

The Australian reported on Sunday, June 21, 2026, that the campaign would launch on Monday, June 22. In that report, Minerals Council chief executive Tania Constable said the campaign was a response to misinformation and to what she described as noisy activists targeting the resources sector.

How the dispute escalated

The current fight has been building for weeks. In late May, The Guardian reported that Labor MP Jerome Laxale and the Labor Environmental Action Network were pushing to cap diesel rebates at $50 million per company, with more than 270 ALP branches said to be backing the campaign.

That push has turned the rebate into a wider internal Labor dispute over how far the party should go in trimming support for diesel-heavy industries while pursuing emissions cuts. The issue is now being treated not just as a tax argument, but as a test of climate policy.

The Minerals Council’s campaign is designed to meet that pressure before it gains further momentum inside the party. The timing also points to the prospect of more debate ahead of the ALP national conference, where the issue could become more formalised if internal support continues to build.

Why fuel tax credits matter

Fuel tax credits refund excise paid by eligible businesses that use fuel off public roads. Mining companies are among the biggest beneficiaries because they rely heavily on diesel for haul trucks, generators and other equipment operating away from public roads.

The debate is not limited to miners. Agriculture, fishing and forestry also depend on off-road fuel use, which is why any change to the scheme could have broader consequences for diesel-heavy industries beyond resources.

Supporters of the scheme say fuel tax credits are a legitimate refund for fuel used in eligible off-road operations. Critics argue the same payments function as a fossil-fuel subsidy and slow the shift toward electrification and lower-emissions equipment.

Recent reporting has helped sharpen the political argument. Guardian coverage in May said BHP had come under criticism for spending heavily on diesel trucks in the Pilbara while continuing to receive large fuel tax credits, adding to scrutiny of the rebate’s climate impact.

Government position and political stakes

According to The Australian’s reporting, the federal government recently told a Senate inquiry that it did not support winding back the fuel tax credits regime. That gives industry a political argument that the existing system still has backing at the federal level, even as reform advocates keep pressing their case.

The stakes are significant for mining costs. If a cap were adopted, large companies could lose part of their diesel rebate, altering the economics of off-road fuel use across the sector.

The issue also feeds into a broader Canberra argument about how Australia should balance resource-sector support with decarbonisation goals. For Labor, it is becoming another internal fault line between members and branches pushing faster change and those wary of imposing more costs on industry.

What happens next

The Minerals Council is expected to formally roll out the digital campaign on Monday, June 22, 2026. The next point of interest is whether Labor MPs or LEAN respond with another push, especially if the issue keeps moving toward conference debate.

Another open question is whether the government keeps its current stance or signals any review after the campaign starts. Sector allies such as agriculture, fishing or forestry groups could also be drawn in if the Minerals Council broadens its effort beyond mining.

For now, the dispute has settled into a familiar pattern: industry argues the credits are a legitimate operating-cost refund, while critics say the scheme undercuts climate policy. The new campaign suggests the argument is likely to intensify rather than fade.