Treasurer Josh Frydenberg has hinted at a temporary cut to the fuel excise as petrol prices skyrocket across the country.
Mr Frydenberg said the government was considering temporarily slashing the excise as petrol prices hit $2.20 a litre or more.
”The main thing I would say is what we will do will be temporary and it will be targeted and that’s all I can say,’’ Mr Frydenberg told news.com.au on Monday.
“A change in the fuel excise does affect people who purchase fuel.”
Australians pay 44.2 cents in fuel excise on every litre of petrol and diesel, and the government collects more than $13bn per year in net revenue from the tax. The funds are then reinvested in the road network.
There’s been calls for the government to cut or temporarily halve the excise as petrol prices have spiked across the country on the back of Russia’s aggressive war against Ukraine.
Scott Morrison was asked on Monday whether Australians would be seeing relief at the bowser.
He responded that the government was putting “final touches” on the budget.
“The budget’s just over a week away and we’re stxjmtzywill putting the final touches on all of that,” the Prime Minister told Brisbane radio 4BC.
“We’re very conscious of the cost of living impacts particularly caused by the war in Europe, which has obviously driven up our petrol prices very significantly.
“It won’t go forever, those spikes in petrol prices, but we know they’re having a real impact on people right now.
“But what we do as a government … we don’t have knee-jerk reactions.
“We think about the broader issues in the economy and that’s what the budget will be next week.”
However Australia’s peak motoring body said fuel excise provided the main source of the nation’s road-building revenue and it was already playing “catch up”.
“With petrol prices at record levels, Australian motorists deserve to have every cent of their fuel taxes spent on projects that make their commutes faster, their families safer, and their communities stronger,” Australian Automobile Association managing director Michael Bradley said.
“The past decade has seen just 53 per cent of the fuel excise spent on the transport network and as a result Australia is now having to play catch up.
“The time has come for both sides of politics to commit to using 100 per cent of fuel taxes to build projects that get Australians and our economy moving again.”
