Keep diesel rebate

Excise on fuels was introduced to fund our national road system.

Logically, diesel not used on roads is exempted.

Originally, the tax was not levied on non road users.

Later it changed to collecting the tax at point of sale, then rebating it back for off-road uses like remote power generation, on-farm use, mining, pumping irrigation water and fishing, none of which use this diesel on public roads.

Ongoing calls by academics, the Greens and the left are based on ignorance of the above or an ideological view wanting it as a transfer tax.

That it would then be a direct tax on production costs and so against our national interest as an export nation gets ignored.

The principle is government taxes end-profits of business, but not input costs. Via this, mining already pays many billions of tax annually.

Should a federal government ever be so misguided as to abolish the diesel fuel rebate, it would have a broad impact.

Radically altering the economics of many marginal mining activities, plus increasing food costs, are but two examples.

In the national interest, exports and regional Australia need all the encouragement possible, not additional cost burdens.