Tasmania’s deputy premier has urged the federal government to slash the fuel excise tax to combat the rising petrol prices continuing to squeeze household budgets across the state.
Guy Barnett said the federal government should provide “much-needed cost-of-living relief” by cutting the current 52.6 cents per litre fuel excise tax.
“Rising fuel costs are impacting the budgets of all Tasmanians,” Barnett said. “The Federal government has the power to cut the fuel excise.”
The call comes as petrol prices continue climbing across the state following overseas uncertainty, putting pressure on both families and businesses.
The Tasmanian Chamber of Commerce and Industry has thrown its support behind the push for temporary fuel excise relief.
“Tasmanian households and businesses are being smashed by the massive increase in fuel prices,” TCCI Acting CEO Colleen Reardon said.
She said halving the excise for three months would cost the federal budget about $2 billion in lost revenue.
“This is a significant amount of money by any measure, however, in our view it is well worth considering given the massive inflationary pressures that fuel increases are causing, right through the economy,” Reardon said.
The business leader said state governments were receiving windfall GST revenue from higher fuel prices.
Reardon said any excise cut would need careful design to ensure truck and freight operators could fully benefit, given complications from existing fuel tax credit and road user charge schemes.
The federal government last cut fuel excise temporarily in 2022 when oil prices spiked following Russia’s invasion of Ukraine.
Independent MLC for Huon Dean Harriss yesterday called for the federal government to halve fuel excise to provide relief for struggling families in Tasmania.
Harriss said the move would cut fuel prices by more than 26 cents per litre.
“Cost of living is the number one issue in the community today,” Harriss said.
“When the price of fuel jumps by 35-50% a litre in a matter of weeks, families feel it instantly.”
“For regional communities like those across the Huon and the Channel, fuel isn’t optional – it’s essential.”
Federal Treasurer Jim Chalmers earlier today said freezing the fuel excise is not something the government is considering.
“In fuel markets more broadly, we are working closely and as a team to make sure that there is supply [for] people particularly in regional areas, and to make sure the ACCC is empowered to go after any suppliers or retailers,” Chalmers told federal parliament.
“For our part, we are providing cost-of-living relief. We are working hard in the markets to recognise and respond to the pressures that Australians are facing.”
