The Australian Greens have called for the $12 billion spent on the diesel fuel rebate to be channelled into an economic stimulus package.
Greens deputy leader Adam Bandt said the economies of Victoria, South Australia and NSW had been hit by the closure or impending closure of manufacturers, like car makers.
Mining companies should be stripped of the fuel rebate, with the funds redirected to building 77,500 public houses over 10 years and a tax break for manufacturers to buy clean technologies and make electric vehicles.
There should also be funds for $3.6 billion of public transport projects and initial work on a high-speed rail network.
"By building more public housing and fast-tracking public transport projects we can find jobs for the workers facing redundancy, address the housing crisis and care for the planet all at once," Mr Bandt told reporters in Canberra on Wednesday.
