One Nation MP's Floor Crossing Splits Party Over Mining Tax Credits

David Farley, a One Nation MP, voted with the Greens and independent MPs on 23 June 2026 to cap tax credits for the most profitable mining companies. The move broke with his party line and triggered a public rebuke from Senator Matt Canavan, signaling deeper fractures in One Nation's ability to maintain party discipline on contentious economic votes.

What the Fuel Tax Credit Scheme Does

The fuel tax credit scheme allows businesses that run heavy diesel equipment — bulldozers, excavators, and trucks — to claim refunds on the excise tax (a federal tax) embedded in their fuel costs. For large mining operations, the numbers are substantial. The Guardian reported that BHP alone received $622 million in diesel fuel tax credits in the last financial year.

The bill Farley supported wouldn't eliminate the scheme altogether — it would simply place a cap on how much high-profit mining companies could claim. This is a more surgical restriction than a full removal.

Recent Changes to the Scheme

The Treasury Laws Amendment (Fuel Excise Relief) Bill 2026 made changes to the underlying federal excise tax on fuel. Because the fuel tax credit is calculated as a percentage of that excise, lower excise rates automatically reduce the credits. According to the ATO's rate schedule, fuel tax credit rates dropped 60.9% for the period from 1 July 2025 to 30 June 2026 as a direct result. Farley's vote extends the discussion: should high-profit miners get what remains after that cut, or should there be further limits?

Why One Nation's Position Matters

One Nation has positioned itself as defending regional economic interests against what it sees as interference from the political establishment. The party draws its base from communities in Queensland and Western Australia whose economies depend on mining and resources. A vote to restrict mining tax relief sits awkwardly with that brand, even if the fiscal case for it is sound.

Canavan told reporters on 24 June 2026 that Pauline Hanson had lost control of her MPs. The comment is significant — it signals concern not just about one vote, but about the party's ability to stay unified on issues critical to its regional base.

Farley's Motivations Remain Unclear

Farley is a new MP without an established voting record, so interpreting his defection is difficult. His decision could reflect his own reading of what his local voters want, a personal conviction about mining mega-profits, or something else entirely. What matters right now is what happens next.

The Greens and independent crossbench MPs secured a majority on this specific question — capping credits for the most profitable miners — because they had Farley's vote. That majority would not exist without him.

The Economic Stakes

If BHP's $622 million figure is typical for major miners, a legislated cap could redirect hundreds of millions in annual revenue back to the government each year. The mining industry will fight any cap hard. Their standard argument holds that the fuel tax credit is not a subsidy but a means to offset a tax on a productive input, and that removing it would raise costs that filter through to project viability and ultimately to jobs in resource-dependent regions. That logic has real force in certain electorates — which is precisely why One Nation would normally be expected to oppose it.

What Comes Next

Farley's vote raises an immediate question for One Nation leadership: will Pauline Hanson enforce party discipline by removing him from the party room, or will she let the breach stand? The answer will reveal something real about the party's internal governance and its capacity to maintain a coherent position as a minor party in an increasingly divided Senate. In a legislature where no single bloc holds a clear majority, that ability shapes which bills pass and which ones fail.