Yes a business can claim a percentage of excise based on a...

Yes a business can claim a percentage of excise based on a number of conditions. In the case a combination of off-road use only, GVM and other factors then the percentage may be 100%. My point is that the excise is applied on point of sale, and the condtions to get a refund are tiered and specific (and only apply to business use). A much more logical solution would be to reduce the subsidy whilst reducing the base excise because it is applies to everyone in the same way.

The subsidy accounts for 10bn~ per year and the largest portion comes from companies in the Iron and Coal mining sector. My point is that the excise barely raises more that the subsidy (refund) that is far more selective on who it goes to.

It make make sense to tip the scales in favour of reducing the subsidy and reducing the excise that is applied in the first place. Don't you agree with that? Perhaps not but I think it's not exactly a crazy idea.

https://www.pbo.gov.au/about-budgets/budget-insights/budget-explainers/fuel-taxation-australia#:~:text=Excise%20revenue%3A,2021%2D22%20Budget%20revenue).



https://www.pbo.gov.au/about-budgets/budget-insights/budget-explainers/fuel-taxation-australia#:~:text=Excise%20revenue%3A,2021%2D22%20Budget%20revenue).