Jerome Laxale wants Labor to come down harder on mining giants. Can he make that happen?

Breaking away from the Labor party line, Bennelong MP Jerome Laxale has called for the federal government to reduce the tax breaks given to mining companies. 

“The way the current system is operating isn't working,” he told the Lorikeet.

“It's cheaper for these large mining companies to keep on using diesel and buying carbon offsets instead of electrifying. I think that's a distortion, and we need to address it.”

When the party meets at its national conference in July he plans to argue for the tax rebate to be capped for large companies. 

It’s not the first time Laxale has publicly pushed for more on environmental issues. The question is whether he has the leverage from Labor's backbench to get it done.  

What is it: The diesel fuel rebate is officially known as the Fuel Tax Credit (FTC) scheme. It reduces or completely eliminates the Australian fuel excise for businesses using it for eligible activities.

• When you pay for fuel at the pump, about 50 cents per litre goes to the taxman. This is called the fuel excise. At the moment, that excise has been halved as temporary relief for spiking fuel prices. This will end June 30.

Some businesses — such as those using offroad farm vehicles or mining equipment — don’t have to pay that. Multinational miners are responsible for 47 percent of all tax credits claimed. BHP, Rio Tinto, Glencore and Fortescue receive almost $2 billion from the scheme annually.

What happened: The government is under pressure to reduce these refunds. Specifically, a campaign from within the Labor Party — the Labor Environment Action Network (LEAN) — is proposing a cap on the diesel tax refund of $50 million per company annually, which would protect farmers and small businesses.

Enter Jerome: The campaign has received support from hundreds of local Labor branches in Australia, and Laxale — a patron of LEAN — will be among those arguing its case at the ALP National Conference in July.

The party machine: The Australian Labor Party was formed in the late 1890s and its first conference was held in 1900. Generally, the conferences are held every three years, and this will be the 50th. They are attended by all state and territory Labor branches, which have the potential to influence major policy decisions.

Grassroots support from party members, however, does not always equate to policy reform from the brass. At the 2011 conference, for example, delegates voted in favour of recognising same-sex marriage in Australia, and this was not legislated until much later, under the conservative Turnbull government. 

What now: Laxale told the Lorikeet he has faith in the “democratic process” of the National Labor Conference. “[It] is a weird and wonderful beast,” he said. 

Thumbnail: Toby Zerna via AAP