The Claim
“Claimed 'the age of entitlement is over' whilst continuing to give mining companies billions of dollars of subsidies and tax concessions.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The "Age of Entitlement" Statement
The phrase "the age of entitlement is over" was delivered by Treasurer Joe Hockey in his 2014-15 Budget speech on May 13, 2014 [1]. The full statement was: "The age of entitlement is over. It has to be replaced, not with an age of austerity, but with an age of opportunity" [1]. This was the Coalition government's first budget and came after inheriting what they described as "five budget deficits in a row" [1].
Mining Company Subsidies and Tax Concessions
The primary subsidy referenced in the claim relates to the diesel fuel tax credit scheme (also called the fuel tax rebate). This scheme allows eligible companies, including miners and farmers, to claim rebates on fuel excise because they operate off-road and do not use public roads maintained by the excise tax [2].
According to ABC News reporting from May 2014, the Australian Tax Office reported that:
- The full cost of the rebate was approximately $5.5 billion in 2011-12 (the final full year of Labor government) [2]
- Of this amount, farmers received $700 million and resource companies received $2 billion [2]
MacroBusiness reported in February 2014 that the rebate cost the budget around $6 billion annually, with approximately $2.3 billion going to the mining industry [3].
The 2014-15 Budget confirmed that the Coalition government would retain the diesel fuel rebate scheme, providing assurances to the mining industry despite the "age of entitlement" rhetoric [2][4]. The mining industry defended the scheme, arguing it was not a subsidy but rather a fair recognition that miners and farmers don't use public roads [2].
Coalition Budget Actions
While the Coalition maintained the fuel tax credit scheme, they did implement some corporate welfare cuts:
- The 2014 budget abolished "a range of industry assistance programmes, saving over $845 million" [1]
- The budget also abolished over 230 bureaucratic programmes and reviewed more than 900 government bodies, with over 70 being abolished [1]
- Company tax was cut by 1.5 percentage points for approximately 800,000 businesses [1]
- The carbon tax and mining tax were abolished [1]
Missing Context
The Fuel Tax Credit Predates the Coalition
The claim omits that the diesel fuel rebate scheme was not a Coalition creation but had been in place for decades. The scheme predated the Abbott government and had existed under both Liberal and Labor governments. In the 2011-12 financial year (under Labor), the scheme cost $5.5 billion, with miners receiving $2 billion [2].
Farmers Also Benefit
The claim focuses exclusively on mining companies but omits that farmers also receive the diesel fuel rebate ($700 million in 2011-12) [2]. The rebate applies to any off-road fuel use, meaning agricultural operators are major beneficiaries alongside miners. The scheme has traditionally enjoyed bipartisan support because of its importance to the agricultural sector [2].
The Policy Rationale
The claim doesn't explain the stated justification for the fuel tax credit. The excise on fuel (38 cents per litre at the time) was designed to fund road building and maintenance. Mining and agricultural operations occur off-road and therefore do not contribute to road wear and tear [2]. The rebate was framed as preventing these industries from subsidizing road users, rather than as a subsidy to them [2].
Labor Also Maintained the Scheme
The $5.5 billion cost in 2011-12 demonstrates that the Labor government (2007-2013) also maintained the fuel tax credit scheme. This was not a new Coalition policy but a continuation of existing arrangements.
Source Credibility Assessment
The original sources provided with the claim include:
- The Guardian: Generally reputable international outlet; Australian edition has center-left editorial stance
- ABC News: Australia's national broadcaster, generally regarded as authoritative and balanced
- SMH/Canberra Times: Fairfax papers (now Nine), mainstream reputable journalism
These sources are mainstream media outlets and are generally credible, though The Guardian's editorial stance typically aligns with progressive/environmental perspectives, which may influence framing of subsidy discussions.
The sources appropriately cite the Australia Institute and other think tanks on the fuel subsidy issue, though the think tanks themselves (Australia Institute, ACF) have advocacy positions on environmental issues.
Labor Comparison
Did Labor do something similar?
Search conducted: Labor government diesel fuel tax credit scheme 2007-2013
Finding: The Labor government (Kevin Rudd and Julia Gillard, 2007-2013) also maintained the diesel fuel tax credit scheme without significant modification. The Australian Tax Office reported that in 2011-12 (the final full year before the 2013 election), the scheme cost $5.5 billion, with miners receiving $2 billion [2].
The fuel tax credit is a bipartisan policy that has existed under both major parties. It is not a Coalition-specific subsidy but a long-standing program benefiting both mining and agriculture.
Labor's Approach to Mining Subsidies
Labor did attempt to introduce the Minerals Resource Rent Tax (MRRT or "mining tax") in 2012, which was designed to increase revenue from the mining sector. However, this was a separate policy from the fuel tax credit scheme. The Coalition's 2014 budget abolished the mining tax while maintaining the fuel tax credit [1].
Balanced Perspective
The Contradiction Identified
The claim identifies a genuine tension in the Coalition's 2014 budget message. While Treasurer Hockey declared "the age of entitlement is over" and emphasized ending "corporate welfare" [1], the government simultaneously:
- Retained the $5-6 billion fuel tax credit scheme
- Abolished the mining tax (reducing mining sector tax burden)
- Cut company tax by 1.5%
This juxtaposition was noted by commentators at the time, including MacroBusiness which stated: "The continuation of diesel rebates is at odds for a Government that has taken a hard line on subsidies, corporate welfare and the end of the age of entitlement" [3].
However, Important Context is Missing
- The fuel tax credit is not a Coalition invention - it predated them and was maintained by Labor at similar cost levels
- The scheme benefits agriculture too - not just "mining companies" as the claim suggests
- There is a policy rationale - off-road users don't use the roads the excise funds
- The Coalition did cut other corporate assistance - $845 million in industry programs were abolished [1]
Is This Unique to the Coalition?
No. The fuel tax credit scheme has been maintained by both Labor and Liberal governments. The $5.5 billion annual cost in 2011-12 (Labor's last full year) is comparable to the Coalition's continuation of the program. This is not a partisan subsidy but a bipartisan policy benefiting both mining and agriculture.
PARTIALLY TRUE
6.0
out of 10
The claim is factually accurate that the Coalition government, while declaring "the age of entitlement is over," continued the diesel fuel tax credit scheme that benefited mining companies at a cost of approximately $2-2.3 billion annually. This created an apparent contradiction in messaging [1][2][3].
However, the claim is misleading in several respects:
It implies this was a Coalition-specific policy, when the scheme existed before them and was maintained by Labor at similar levels ($5.5 billion total in 2011-12, with $2 billion to miners) [2].
It suggests only mining companies benefited, when farmers also received approximately $700 million annually under the same scheme [2].
It omits that the Coalition did cut other corporate welfare ($845 million in industry assistance programs) [1], showing some consistency with their "end of entitlement" message, even if they didn't apply it to the fuel tax credit.
The core critique - that the "age of entitlement" rhetoric didn't apply to the mining sector's fuel rebate - is valid and was noted by commentators at the time [3]. But the claim overstates the uniqueness of this situation and understates the bipartisan nature of the policy.
Final Score
6.0
OUT OF 10
PARTIALLY TRUE
The claim is factually accurate that the Coalition government, while declaring "the age of entitlement is over," continued the diesel fuel tax credit scheme that benefited mining companies at a cost of approximately $2-2.3 billion annually. This created an apparent contradiction in messaging [1][2][3].
However, the claim is misleading in several respects:
It implies this was a Coalition-specific policy, when the scheme existed before them and was maintained by Labor at similar levels ($5.5 billion total in 2011-12, with $2 billion to miners) [2].
It suggests only mining companies benefited, when farmers also received approximately $700 million annually under the same scheme [2].
It omits that the Coalition did cut other corporate welfare ($845 million in industry assistance programs) [1], showing some consistency with their "end of entitlement" message, even if they didn't apply it to the fuel tax credit.
The core critique - that the "age of entitlement" rhetoric didn't apply to the mining sector's fuel rebate - is valid and was noted by commentators at the time [3]. But the claim overstates the uniqueness of this situation and understates the bipartisan nature of the policy.
📚 SOURCES & CITATIONS (6)
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1PDF
2014-15 Budget Speech - Treasurer Joe Hockey
Archive Budget Gov • PDF Document -
2
Mining industry says diesel rebate is not a subsidy
A mining lobby group denies the diesel fuel rebate means taxpayers are subsiding miners.
Abc Net -
3
Abolish diesel entitlement to fix Budget?
By Leith van Onselen In all the talk about tackling corporate welfare, tax concessions granted to Australian companies are yet to gain much attention from the Government, despite their significant cost to the Australian Budget. One of the largest tax concessions is the diesel fuel rebate, which allows eligible companies to claim a reduced rate
MacroBusiness -
4
The politics of the 'age of entitlement'
The Coalition’s strong rhetoric on the culture of entitlement, including a controversial decision not to provide $25 million in government assistance to SPC Ardmona masks an inconsistent political philosophy.
Australian Financial Review -
5
Time called on 'age of entitlement'
Tony Abbott endorses declaration that handouts are out and personal responsibility is in.
The West Australian -
6
Federal budget 2014 - Full speech
Full text of the 2014 budget speech delivered by Federal Treasurer Joe Hockey.
The Sydney Morning Herald
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.