Marion Terrill from the Grattan Institute contends that overhauling the fuel tax credit scheme would reduce the budget deficit and help Australia to achieve the net zero target of 2050.
The fuel tax credit for heavy vehicles costs about $8 billion a year, but the Grattan Institute estimates that this could be reduced to $4 billion if the tax credit is halved.
The report contends that there is no reason why operators of large vehicles such as semi-trailers should pay less fuel excise tax than owners of small vehicles such as utes and vans that are used by businesses.
