The Coalition will take immediate steps to unlock oil projects in Queensland and make it easier for industry to invest in Australia’s fuel future by removing barriers that stand in the way of new refining capacity in Australia.
Building on our environmental reforms announced on 20 April 2026, we will immediately designate Taroom as a National Strategic Priority Project.
This means the Commonwealth will get out of the way and trust the state to get on with the job - helping Australian oil flow to domestic refineries up to two years earlier than would otherwise be the case.
We will also bolster domestic refining by working with industry to ensure the Fuel Security Services Payment can support future investments in new and prospective refineries.
A detailed consultation process would commence under the Coalition on key changes to provide additional calibrated support to industry to increase Australia’s refining capacity.
In addition, we will also look to broaden the scheme so alternative fuels, like biofuels and coal to liquid, can be supported.
This will diversify our sovereign fuel supply and strengthen resilience in the face of global shocks.
This builds on the Coalition’s strong record. When Australia’s last two refineries were on the brink, it was the Coalition that stepped in and saved them and put in place a program to build more storage.
We understood then what Labor still does not understand now. If fuel stops, Australia stops.
By contrast, Labor’s Net Zero obsession is pushing investment away.
The Coalition will also abolish the Safeguard Mechanism which is carbon tax that is costing Australia’s two remaining refineries around $165 million and undermining their competitiveness.
Its heavy handed policies have already forced one of Australia’s refineries to export fuel, which weakened our domestic supply.
Their approach is making us more dependent on overseas fuel, not less.
Leader of the Opposition Angus Taylor said the Coalition has a clear plan to secure Australia’s fuel future and keep the country moving.
“This is about one simple goal. I want your car filled up, the nation fuelled up, and our future powered up,” Mr Taylor said.
“When a crisis hits, this Prime Minister is always last to lead and Australians are paying the price.
“We’ve put forward a clear, practical plan to deal with the crisis now and secure Australia’s fuel future. The Prime Minister should pick it up today. No excuses. No delays.”
Shadow Minister for Energy and Emissions Reduction Dan Tehan said the Coalition plan will back Australian industry and strengthen domestic fuel security.
“Chris Bowen’s open hostility to oil, coal, and gas has left Australia dangerously exposed during this national fuel crisis,” Mr Tehan said.
“Instead of slapping on a big new carbon tax, the government should be looking at existing mechanisms, like the Fuel Security Services Payment, to incentivise industry to invest more here in Australia.
“Recent changes to the Payment made by Mr Bowen are under-baked and missed the opportunity to capture the benefits of alternative fuels to boost Australia’s long-term resilience.”
Shadow Minister for Resources and Northern Australia Senator Susan McDonald called for urgent action to unlock Queensland’s resource potential, warning that regulatory barriers and a lack of government support are holding back critical investment in the sector.
“Queensland has plenty of untapped resources that would otherwise remain in the ground if we don’t support the sector to drill and dig,” she said.
“We urgently need to remove hurdles – regulatory, legislative, arbitrary taxation – to ensure Australia is an attractive investment destination now and into the future, so we can get more oil, gas, and minerals out of the ground.
“Labor’s failure to back our resources sector has never been clearer than it is today.”
This announcement builds on the Coalition’s comprehensive, end to end fuel security policy suite.
From unlocking domestic resources, to expanding storage, to strengthening refining and supply chains, we have a clear plan to keep Australia moving.
The Coalition’s comprehensive plan for fuel security includes:
Reducing the cost of fuel
- We led the cut to fuel excise to take pressure off families and small businesses
- We will scrap Labor’s Safeguard Mechanism, a carbon tax on business, saving refineries around $165 million by 2029–30
Strengthening transparency and resilience on fuel supplies
- We will establish a daily public fuel dashboard so Australians can see supply levels in real time
- We will keep pushing for a Parliamentary Inquiry to learn the lessons of this crisis and make sure it does not happen again
Building strategic fuel security
- We will more than double minimum stockholding levels to 60 days for critical fuels
- We will establish an $800 million Australian Fuel Security Facility to unlock over 1 billion litres of new storage capacity, with a focus on diesel
- We will remove barriers to new or prospective refineries to accessing the Fuel Security Services Payment
Unlocking Australian fuel supply
- We supported legislation to underwrite fuel imports in the short term while domestic supply ramps up
- We will reverse regulatory barriers through EPBC reforms that are deliberately slowing oil and gas approvals
- We will designate National Strategic Priority Projects to fast-track nationally significant developments, including Queensland's Taroom trough and Western Australia’s Browse project
- And we will reinstate the $100 million Junior Minerals Exploration Incentive, including $50 million for oil and gas, to unlock the next wave of discoveries
- We will work with industry to ensure alternative fuels like biofuels and coal-to-liquid can be eligible for appropriate support through the FSSP.
The Coalition will build a stronger Australia to make our economy work for Australians and will deliver these and further reforms because Australia is worth fighting for.