The proposal aims to provide ongoing, sustainable funding for community climate adaptation and resilience.
•    Component 1 – Phase out and abolish the fuel tax credit (FTC) for all industries except agricultural businesses. 
      –    Current FTC cents per litre to be reduced by 1/3 each year.
•    Component 2 – Establish a $10 billion Climate Resilience Facility Fund over 3 years, which would be managed by government and administered by an appropriate government department or agency to provide grants to support the delivery of the National Climate Adaptation Plan. 
      –    Year 1: $1.5 billion, Year 2: $3.5 billion, Year 3: $5 billion.
      –    The Climate Resilient Facility Fund is funded through the removal of FTC fossil fuel subsidies.

The policy would commence on 1 January 2026.