Oil

2/3rds of the world’s oil reserves are in the Middle east meaning western countries are dependent upon that oil and exposed to its security of supply and of price fluctuations. Oil supply will not be able to keep up with demand, and as it runs low the price will rise considerably. From a climate perspective we shouldn’t be burning it and from an economic viewpoint it makes good sense to be less reliant upon oil. Using oil more efficiently as well as finding substitutes will insulate us from the inevitable price hikes and secure a better future.

Diesel and Health

Diesel fuel does indeed produce less greenhouse emissions than petrol, however it also creates air pollution because diesel engines tend to emit higher levels of various air pollutants. These air pollutants cause respiratory complications such as asthma and shortness of breath.
Additionally research has found that diesel combines with cholesterol in the blood to activate genes that trigger hardening of the arteries causing Atherosclerotic cardiovascular disease (heart disease) which is the leading cause of death in the Western world. Research summary

Federal Government Oil Subsidies 

Federal Fuel Tax Credits

The Australian government is actively promoting fuel tax credits, even to the point of flyers in Australian Taxation Office mailers, encouraging use of the subsidy and the consumption of fuels. Some points of interest are; Sorce: ATO

• The most greenhouse friendly fuels (LPG, LNG, CNG and Ethanol) are specifically excluded from the program.
• Size matters, with 4.5 tonnes being the size of vehicle people would be shopping for to get the rebate, encouraging people to buy larger vehicles that will consume more fuel overall.
• The tax rebate includes heating oil or kerosene fuel and as so the Australian taxpayer is subsidising other peoples heating requirements.
• Using petrol or diesel to generate electricity makes you eligible for a fuel tax credit. (Alternative energy is hard enough to get off the ground on a level playing field, this measure actually means that petrol or diesel generators are subsidised by the taxpayer).
• The "one of four environmental criteria" are very lax, in fact for the last one merely requires that the vehicle be serviced according to the manufacturer's instructions and even that doesn't apply if the vehicles used on a farm. Source
• Mining activity and the transport of mining products to market over rail are specifically included in the tax credit scheme. This means for example that a coalminer has their fossil fuels subsidised so that they can extract and transport another form of fossil fuel to be burned and create what is then labelled "cheap energy".

This subsidy began on the first of July 2006, when the burning of fossil fuels was known to be causing dangerous climate change.

Work Car Fuel Expenses

The bigger the engine the bigger the tax deduction, encouraging people to buy vehicles with larger engines that burn more fuel. Effectively all taxpayers are subsidising the users of larger engines.

The ATO 2006/07 cents per kilometer rates for claiming income tax deductions for car expenses.

Large car owners get 20% more tax exemption than small car owners.

Renewable Energy Diesel Replacement Scheme

Solazone installer Kolya Retif is taking a photo of 20 BP Solar 160 watt modules installed on our galvanised ground-mount frame. The meaty solar power system is to be used to provide all the power for a house for 4 people, in S.E. Queensland, and is one of the last projects to be installed under the Renewable Energy Diesel Replacement Scheme, now finished because it ran out of funding.

This rebate scheme was introduced originally to satisfy the Democrats demands and allow the GST legislation to be passed. Previously there was no sales tax on any solar equipment. Now there is GST on all solar equipment, rebates are winding down and the tax on diesel that provided the money for the rebates, has now been removed. Source: http://www.solazone.com.au/szs3.htm