Australia allocates $10 billion in fossil fuel subsidies for 2025‑26

In the 2025‑26 financial year the Australian government provided AU$16.3 billion (about US$10.7 billion) in subsidies to fossil‑fuel companies, a rise of 9.4 % from the previous year. The largest component was the fuel‑tax credit scheme, estimated at AU$10.8 billion, mainly benefiting mining firms.

Critics say the subsidies undermine Australia’s clean‑energy targets by diverting public funds from renewable projects and electric‑vehicle infrastructure. Calls for reform have come from the Australian Council of Trade Unions, the chair of the Climate Change Authority, and mining giant Fortescue, while Nobel‑winning economist Joseph Stiglitz has urged a high tax on natural‑resource extraction.

The debate highlights a gap between the government’s stated climate commitments and its fiscal support for coal, oil and gas, prompting renewed scrutiny of how taxpayer money is allocated.