Opposition Leader Angus Taylor has written to Anthony Albanese and called on the government to temporarily halve the fuel excise for three months amid skyrocketing petrol and diesel prices triggered by the Middle East conflict.
The government has ruled out changing the excise, which is made up of about 52 cents per lire of fuel and does not rise or lower with wholesale price.
Mr Taylor, speaking to reporters in Canberra alongside Nationals leader Matt Canavan and opposition transport spokeswoman Bridget McKenzie, said the change would save Australians 26 cents per litre at the bowser.
“We have proposed a fully funded package that will not put pressure on inflation,” he said on Friday.
The Coalition was also urging the government to halve the road user charge, which Mr Taylor claimed would “flow through to transport costs and take pressure off the cost of transport for food and all those other goods that Australians have to pay for every single day”.
“We need affordable fuel in this country. We need secure fuel in this country, and we need it as fast as possible,” he said.
Asked how the government could afford to pay for a fuel excise cut, Mr Taylor suggested scrapping the electric vehicles Fringe Benefits Tax exemption, slashing green hydrogen projects, and freezing the home battery scheme.
Later, the Prime Minister told reporters in Canberra these suggestions would effectively scrap key “cost of living” measures.
“Having sat in parliament all week and had the opportunity to raise, whatever issues they wanted. They didn’t, that’s up to them,” Mr Albanese said.
”But they’ve called also for cuts to things that are making a difference to cost of living, such as batteries that, making a positive difference. They’ve called for cuts to (electric vehicle) support.
”I don’t think there’s anyone out there today who has bought an electric vehicle who’s regretting the decision at this point in time.”
Speaking alongside Mr Taylor, Senator Canavan said the change could save families up to $50 per week.
“The Australian people need some breathing space. Already, before this Iran conflict and the petrol prices surges we’ve seen already, before that, the budgets of Australian families were at breaking point,” he said.
He blamed the government’s spending for placing the Australian economy in a “vulnerable” position prior to the conflict.
“Now we’re seeing so much pressure on the budgets of all families around Australia, and it’s not right for the government to continue to take in the same amount of tax in that environment,” he said.
“The sensible approach here is to provide a little bit of relief to Australian families.”
But in the last week, criticism of cutting the levy has come from the Coalition’s own ranks, with Senator McKenzie branding a “simple cut” to the excise an inadequate solution for the transport industry.
She later denied changing her mind on the issue.
“This is the difference between … a calibrated approach from parties of government to this problem, and the simple solutions offered by parties of protest,” Senator McKenzie said.
“That is why we’re not just simply cutting the fuel excise. Our solution addresses that issue, by also cutting the road user charge so that truckies do get the benefit.
“We’ve seen in the past when people have called and implemented simple cuts to fuel excise without addressing road user charges, at the same time, that our trucking industry has a credit crunch because they’re actually having to pay upfront at the bowser for the increased price.
“And they’re not getting relief until they get their (Business Activity Statement) done.”
