On 23 June 2026, David Farley, a One Nation MP, did something his party did not expect: he voted with the Greens and independent MPs to limit a tax break for the biggest mining companies. The move surprised people because One Nation typically defends mining interests, and it set off a public clash with Senator Matt Canavan.

What is the fuel tax credit scheme?

Here's how it works. Mining companies use heavy diesel trucks and equipment. The government charges fuel taxes, and those taxes are built into the price of diesel. The fuel tax credit scheme lets mining companies claim some of that tax money back.

The numbers matter. The Guardian reported on 22 June 2026 that BHP alone got $622 million in these credits in one year. That's real money — millions per company every year.

The proposal Farley supported would not scrap the scheme entirely. Instead, it would put a cap on credits for the most profitable mining companies. Think of it as a ceiling: if you're making huge profits, you don't get the full refund anymore.

Why this matters for mining regions

One Nation's support base lives mostly in regional Queensland and Western Australia — areas where mining is the backbone of the economy. The party has built its reputation by resisting what it calls "elite interference" in business. Voting to restrict mining tax credits doesn't fit that story.

When Canavan said on 24 June that Hanson had "lost control" of her MPs, he was sending a message. It wasn't just criticism of Farley. It was a signal to One Nation voters that the party's leadership takes these defections seriously — especially on an issue that touches their communities and livelihoods.

The fiscal and political stakes

If a cap on credits redirects even a fraction of the $622 million BHP receives, the Commonwealth could gain hundreds of millions in revenue each year. Mining companies will fight any restriction hard. Their argument is straightforward: fuel tax credits are not subsidies in the traditional sense; they offset a tax on a tool they need to do business. Remove them, they say, and costs rise, projects become less profitable, and regional jobs disappear.

That reasoning carries real weight in mining towns. It also explains why One Nation would normally be expected to resist any cap on these credits.

Farley's vote runs against that logic, and it has exposed a tension within the party about where its discipline really lies.

What happens next for One Nation

The immediate question is whether One Nation will discipline Farley — suspend him, fine him, remove him from a position — or let the vote pass without punishment. The answer will tell us something about how well Hanson can hold her MPs in line, especially as the Senate becomes more fragmented and alliances shift.

For now, the Greens and teals secured enough votes to advance the cap on this single vote. Whether Farley defects again, or whether this was a one-off moment, remains unclear. What is clear is that One Nation's internal unity, at least on this issue, has cracked.