The excise was halved by the Coalition in March but budgetary pressures mean the new government is sticking with plans to raise it
Australians have been partly shielded from soaring fuel prices over the past six months by a cut to the fuel excise, introduced by the previous Coalition government.
The fuel excise is the federal government’s fuel tax, with motorists earlier this year paying 44.2 cents to the government for every litre of fuel they buy. The price of oil and basic household items rose, and the government felt pressured to alleviate some of these costs.There have been calls for the excise reduction to remain in place, as the cost of living crisis continues. But the federal treasurer, Jim Chalmers, has insisted the government would stand by the 28 September deadline. The new excise – indexed to CPI – will be 46 cents per litre.
“This is 700m reasons why the price should not shoot up by the full 23 cents on the night that the excise relief ends.”but still expecting a deficit “north of $30bn”.Chalmers has noted the oil price has dropped since February but due to its unpredictable nature and the impending escalation of the war in Ukraine, it is hard to predict where prices could go.
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