The federal government is under pressure over high-priced petrol, with ministers canvassing whether to make a controversial change to fuel excise. auspol petrol
Prime Minister Scott Morrison has flagged tax relief for families to deal with the rising cost of living while cabinet canvasses whether to make a controversial change to fuel excise, with analysis showing a cut of just 1 cent a litre would cost the heavily indebted budget $500 million a year.
“These cost of living impacts are real, and the Australian government understands that,” Mr Morrison said on Monday morning.The government is to ease cost of living pressures. But there is disagreement within the coalition on the best course of action, with the Prime Minister and cabinet ministers canvassing options to provide relief for families.The excise – a 44.2 cent tax on every litre of petrol or diesel – will raise $19.2 billion in revenue this financial year. About $7 billion of that is returned in rebates to industries, including mining, that do not use public roads.
“In those coastal areas, we’re talking about billions in money [that’s] got to come, we either utilise that tax or we put on an additional tax,” he said. “Excise only accounts for one-fifth of the price at the pump, so you can’t fix the impact of a war in Europe by using a Bandaid on a tax in Australia,” he said.
Michael Bradley, managing director of the Australian Automobile Association, said if state premiers wanted the cost of fuel reduced, they could consider foregoing the GST that is also paid on fuel.
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