The Australian Government’s $26 billion per year nature-harming problem revealed by study
Coal mining operation at Moolarben in NSW. Image: Max Phillips / CC BY 2.0 Flickr
Media Release
17 February 2026
Groundbreaking research has uncovered that the Australian Government is providing $26 billion per year in financial support to activities that harm the nation's unique natural environment, known as biodiversity-harmful subsidies.
The research comes at a critical time, as the Australian Government made an international commitment to identify biodiversity-harmful subsidies by 2025, but has not yet produced this work.
The study, published today in the Australasian Journal of Environmental Management, was led by PhD candidate Paul Elton at The Australian National University and conducted in collaboration with the Biodiversity Council.
The study used a best-practice OECD-developed method to identify subsidies, including cash payments and tax concessions, and evaluate the potential harm to nature from the activities that they support.
“We identified 36 separate subsidies for activities that are driving environmental decline, such as native forest logging, fossil fuel mining and projects that clear native vegetation,” said Mr Elton.
“They include $22.5 billion per year in direct payments from the government and an additional $3.8 billion per year in tax concessions, totalling $26.3 billion per year, based on 2022-23 data.
“This represents about 4% of the total federal budget. That is twice as much as the federal government invests in supporting government schools nationally, and 25 times more than they spend on looking after nature.
“Under the Kunming-Montreal Global Biodiversity Framework (GBF), Australia committed to identifying harmful subsidies by 2025 and reforming them by 2030. It was a key commitment made to halt biodiversity loss.”
The annual Australian Government subsidies (in billions) being paid to support activities that are likely to harm nature, with fossil fuel production and use taking over half the total amount.
Biodiversity Council member and study co-author Professor Martine Maron from the University of Queensland said, "Reforming these subsidies will benefit nature and save billions of taxpayer dollars each year.
“The annual subsidies amount is much greater than what scientists calculate is needed to effectively care for the environment: rehabilitate degraded land, recover threatened species, and protect our water catchments and pollinators.”
“We all know there is a massive shortage of investment in the environment; redirecting these funds into activities that help instead of harm nature would be game-changing, and help us leave a healthy environment for our kids.”
Biodiversity Council Policy and Innovation Lead Lis Ashy said, “It would be appropriate for the Australian Government to request the Productivity Commission to undertake an independent assessment of their subsidies that might be harmful to the environment.
“This current study can be used to prioritise subsidy areas that require more detailed consideration.
“Once the subsidies have been identified, the Australian Government must progress their reforms so that they no longer support and drive degradation of the environment.”
“The reforms should start with the most harmful subsidies, and be designed to achieve effective and just outcomes.”
Natural assets are essential to protect for future generations - for human health, the economy, and disaster resilience - and biodiversity underpins these assets. Image: Jaana Dielenberg.
