Filling up your car will cost less under a Coalition government, Opposition Leader Peter Dutton has promised, as both major parties compete on cost of living solutions, ahead of the election.
The opposition has promised to cut the fuel excise by 25c for a year — taking the rate from about 50c to 25c per litre.
Mr Dutton said his policy would take effect as soon as he wins office, unlike Labor’s new tax cuts that are more than a year away.
“If elected, we will deliver this cost of living relief immediately — whereas people have to wait 15 months for Labor’s 70-cents-a-day tax tweak,” Mr Dutton said in a statement.
Peter Dutton will deliver his budget reply on Thursday evening. (ABC News: Matt Roberts)
The opposition leader will outline the $6 billion policy in his Budget Reply speech to parliament on Thursday night, as the fight continues over which party will better help voters combat high living costs.
According to the Coalition’s calculations, the change will save someone filling up a 55-litre car about $14 a week — or more than $700 across the year.
Mr Dutton said his policy would make “a real difference” after his colleagues slammed Labor’s tax cuts as a “cruel hoax.”
“Our plan will save many hundreds of dollars for families across Australia,” he said.
“The commute to work, taking the kids to school or sport, the family drive, or the trip to the shops will all cost less under the Coalition.“
The Coalition voted down Labor’s income tax cuts in parliament on Wednesday, ahead of offering voters a different cost-saving measure.
It shows the parties alternate proposals on living costs, after the opposition neutralised Labor’s health policies on Medicare and cheaper PBS medications.
Coalition says fuel excise cut won’t impact road funding
The fuel excise is a federal government tax collected from producers or importers when the fuel leaves their depot.
While suppliers can set their own prices, the cost of fuel at the petrol station generally fluctuates in line with wholesale prices.
A competition watchdog review found a previous cut to the excuse resulted in sharp price falls across the country.
That was when the tax was slashed for six months under the former Liberal government to help combat a spike in fuel prices facing drivers, but the Labor government let the discount lapse after they were elected, arguing it was too costly.
Ahead of its expiration in 2022, Mr Dutton used Question Time to quiz the government about if it would extend the cut.
A year later, amid a prolonged period of above $2 petrol prices in late 2023, Independent MP Dai Le called on the government to bring back the discount.
At the time, Liberal MP Warren Entsch, who represents the regional Queensland seat of Leichhardt, told the ABC the revenue helped to fund the nation’s road network.
While the revenue raised through the tax was historically tied to road funding, in recent decades it has operated more as a general revenue-raising tax, therefore the opposition said its policy would not reduce road funding.
