@km87 the fact you think the FTCS is a tax deduction (operating...

@km87 the fact you think the FTCS is a tax deduction (operating expense) proves you haven't read the report, or perhaps you don't understand what you're talking about. I suggest actually reading it. There is a reason it is called a subsidy, because it is one!



Miners get a cash refund of the excise paid on Fuel (which is not assessable), and then they can claim the difference on what was paid as fuel as an operating cost. Hope you understand now with my simplified example below.

Source: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/excise-on-fuel-and-petroleum-products/excise-duty-rates-for-fuel-and-petroleum-products#ato-Excisedutyratesfuel

	Small Business	Fossil Fuel Company
Diesel price (excl. tax)	$1.50	$1.50
Fuel excise (tax)	$0.506	$0.506
Fuel tax credit refund	❌ $0.00	✅ $0.506 (full refund)
Total price paid per litre	$1.50 + $0.506 = $2.006	$1.50 – $0.506 = $0.994
Fuel cost claimed as deduction	$2.006 (full paid amount)	$0.994 (net after refund)
Tax deduction benefit (@30%)	$0.602 saved	$0.298 saved
Total effective cost per litre (after tax)	$2.006 – $0.602 = $1.404	$0.994 – $0.298 = $0.696

Item	Amount (AUD)
Small Business pays	$1.404 per litre (after tax)
Fossil Fuel Company pays	$0.696 per litre (after tax)
Advantage for fossil fuel company	✅ $0.708 cheaper per litre