Australia's largest stock trading and investment forum Australia's #1 stock forum

It's not often mentioned, but only about 25% of the fuel tax...

First 28 Last

Share
Profile

Follow
greenhart

13,071 Posts.

39

20/10/14

18:48

Post #: 14151521
Share

Originally posted by ferronium ↑

The single biggest so-called 'subsidy' to mining is the low rate of fuel excise tax. The reality is this isn't a subsidy. The purpose of the fuel excise tax is to pay for public roads and associated infrastructure for the public to drive on. Mines don't have paved public roads, they have private dirt roads within the mine area created by the companies for their own vehicles. Some mines even have private dirt roads that go from the mine to a train loading facility, which can be up to 100km away. All paid for upfront and maintained by the Co's. This is not a subsidy!

Other countries operate variations on a theme. New Zealand sells diesel 'road tax free' at the pump. But all diesel vehicles that drive on public roads have a wheel odometer fitted and a couple of times a year the vehicle owner has to fill in a usage form and send a cheque to the Gov. This system has the great advantage that diesel cars do little wear/damage to roads so are taxed at a lower rate than trucks (higher rate) which do most of the damage to the road. So the miners diesel haul truck and the farmers diesel tractor don't require these and don't pay road tax.

Expand

It's not often mentioned, but only about 25% of the fuel tax goes towards roads and transport infrastructure.

The rest goes into general revenue.
1 Upvote

Reply

There are more pages in this discussion • 4 more messages in this thread...

First 28 Last