Fossil fuel subsidies cost Australian governments $16.3 billion in 2025–26, an increase of 9.4% on the previous year.

This is a larger increase than the 7.6% growth of the National Disability Insurance Scheme.

Growth in fossil fuel subsidies is driven by the federal government’s Fuel Tax Credit Scheme, which cost $10.8 billion in 2025–26.

Growth of this scheme is expected to outstrip spending on a range of social services including disability assistance, child care subsidies and aged care.