Adani’s claim that it did not need ‘a cent of Australian taxpayer dollars’ to fund the Carmichael coal mine has been undermined by a new report showing that it will receive billions in public money.
The briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA) estimates that the multinational will receive $4.4 billion in tax exemptions, deferrals and capital subsidies over the next three decades.
The subsidies are required because Adani has been unable to secure capital for the project from anywhere in the world.
The author of the report, IEEFA’s Tim Buckley, said the money could instead have been used to assist the transition from coal to sustainable energy alternatives by helping workers in regional communities secure long-term employment.
‘The Federal and Queensland governments have repeatedly stated the Adani mine is commercially viable and able to stand on its own two feet – while at the same time providing Adani with billions of taxpayer dollar in subsidies,’ Mr Buckley said.
‘IEEFA has concluded the Adani coal mine would not open nor survive without billions of dollars in ongoing subsidies being provided by the Queensland and Australian governments over the coming three decades.
‘Our governments’ massive subsidies should instead be funnelled into projects that help prepare and transition Australia’s regional communities, and those which are likely to generate corporate taxes for Australia.’
The briefing note reviews a number of subsidies and exemptions being awarded to Adani, including a 900 million dollar, seven-year low interest royalty capital subsidy provided by the Queensland government.
The deal, which has been subject to repeated extensions, would ensure no royalty return from the Carmichael mine into the Queensland community for a decade.
According to Mr Buckley, ‘The review also included the fuel tax credit scheme, 22 billion litres of water annually, a 90km private road (Adani claims we are wrong on this one), final void rehabilitation exemptions, and corporate tax shields.’
‘That Australian taxpayers have to shoulder high and increasing personal taxes at a time when the predominantly foreign-owned coal industry is continuing to access a billion-dollar annual diesel fuel subsidy is simply wrong.
‘IEEFA would contend the coal industry should be weaned off this diesel rebate. Fifty years of subsidies should be long enough for this sector to get to viability absent taxpayer support’, Mr Buckley said.