Motorists could be slugged an extra $1 billion a year at the petrol pump under a plan floated for the federal budget.
Sky News understands the tax will be pinned to inflation, ensuring the price at the pump will go up twice a year with the proceeds pumped back into roads. An increase in the fuel excise in next week’s federal budget would be an attack on working families, opposition frontbencher Anthony Albanese says.
The Abbott government is believed to be considering a three cent lift in the 38.1 cent per litre excise that could bring in $1 billion in extra revenue a year.The excise has been locked at 38.1 cents since the Howard coalition government froze automatic indexation in 2001, and if it rose now millions of motorists across the country will pay more for petrol.
Mr Albanese said any increase would show the coalition government was ‘attacking the public through the (petrol) bowser’.
It would hurt working families ‘every time they filled up in their car’, Labor’s transport spokesman said on Friday.
‘It’s a regressive tax because if you live further away from where you work and you don’t have public transport options … you’ll pay more and you’ll pay it every week,’ he added.’
(It’s) bigger than the carbon price on everyone’s personal motor vehicle.’Government frontbencher Christopher Pyne labelled Labor ‘arsonists’ for not supporting the government’s plan to scrap the former government’s carbon tax.
‘They’re like arsonists that set fire to their neighbour’s house, then when the firefighter turns up to try to put it out they mug the firefighter as well,’ the education minister said.While Treasurer Joe Hockey’s office was not confirming the return of petrol excise indexation, which was frozen in 2001 at 38.14 cents a litre, Sky News understands that the idea is highly likely to feature in Tuesday’s budget.
Industry experts say indexation to inflation would raise an extra $1.1 billion a year in 2016/17, rising to $1.6 billion in 2017/18.Another option floated in government ranks is lifting the excise rate by up to three cents a litre, estimated to raise an extra $1.2 billion a year on top of the $18.5 billion already forecast.Assistant Infrastructure Minister Jamie Briggs says there will be a range of measures in the budget which would be difficult to sell politically, but were needed to get back into the black.
The Australian Automobile Association says any rise in fuel excise is unjustified.’Motorists already pay too much tax,’ AAA chief Andrew McKellar said.As well, only a fraction of the fuel excise was being returned to spending on transport infrastructure by the federal government.’It’s been estimated about a third of the fuel excise revenue is currently spent on roads.But the government is understood to be planning a $10 billion infrastructure package as part of the 2014/15 budget.
source: skynews.com.au
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