Jan Davis: Spooked Tasmanian farmers argue against diesel fuel rebate cut

Spooked by speculation that the federal government may reduce the rebate they receive on the diesel fuel they use on the land, Tasmanian farmers are urging the state’s Liberal politicians to fight any proposed cut.

Farmers across the nation get a rebate of the excise that the federal government imposes on diesel fuel. According to Federal Parliament’s own website, the excise was designed to: “recover from road users the costs they impose on society. And, historically, revenue from the excise was at times hypothecated to fund expenditure on roads”. The rebate was therefore established to refund the 38.14 cent-a-litre excise (tax) to farmers, foresters, fishers and others who use diesel fuel off road, on their own land.

“There is no reasonable argument that would justify charging what is essentially a road maintenance tax on fuel used by farmers in ploughing a paddock, using a harvester or running a diesel irrigation pump. These are not on-road uses and so should not have to contribute to the cost of maintaining roads.

“Any move to reduce or remove this rebate will add a yet another cost burden to farmers already struggling with increased costs and falling returns,” Tasmanian Farmers and Graziers Association chief executive Jan Davis said today.

“Tasmanian farmers simply will not stand by and watch the diesel fuel rebate cut. We are urging them to contact Tasmania’s federal representatives to carry the fight for us to the federal government as it prepares the May 13 Budget,” Ms Davis said.

“Agriculture has been identified as one of the five pillars of the national economy. The federal government has recognised that Australian farmers are facing challenges in being internationally competitive. Comments on their Agricultural Competitiveness White Paper proposal closed recently,” she said. “It doesn’t take a rocket scientist to work out that any changes to the diesel rebate will put farmers even further behind the game.”
TFGA chief executive Jan Davis