**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].
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]
**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.
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 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 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.
政策 nounSeisaku の possessiveNo 根拠 nounKonkyo
This was not a new Coalition policy but a continuation of existing arrangements.
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.
**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].
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.
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**
1. **The fuel tax credit is not a Coalition invention** - it predated them and was maintained by Labor at similar cost levels
2. **The scheme benefits agriculture too** - not just "mining companies" as the claim suggests
3. **There is a policy rationale** - off-road users don't use the roads the excise funds
4. **The Coalition did cut other corporate assistance** - $845 million in industry programs were abolished [1]
**Is This Unique to the Coalition?**
No.
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.
However, the claim is **misleading** in several respects:
1. **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].
2. **It suggests only mining companies benefited**, when farmers also received approximately $700 million annually under the same scheme [2].
3. **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].
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.
However, the claim is **misleading** in several respects:
1. **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].
2. **It suggests only mining companies benefited**, when farmers also received approximately $700 million annually under the same scheme [2].
3. **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].