Photo: The tax on fuel will increase from November 10. (Getty Images: Ian Waldie, file photo)
The price of petrol will rise in two weeks with the Federal Government deciding to push ahead with its plan to increase the fuel excise, without the need for legislation.
The Government will give effect to its budget measure by increasing tariffs, in a move which will begin on November 10.
It will mean the tax on fuel will rise by about half-a-cent per litre, but the Finance Minister insists the impact on the average household will be about 40 cents a week.
Finance Minister Mathias Cormann said the increase was forecast to generate $2.2 billion of net revenue over the 2014-15 forward estimates and $19 billion over the next decade.
He said if the tax rise was not validated by Parliament within 12 months, the extra revenue would be returned to fuel companies, not motorists.
“We’re very confident it will be validated within 12 months,” Senator Cormann said.
He challenged the Opposition and Greens to allow the measure to pass Parliament.
“The question for Bill Shorten and the question for Christine Milne is whether in 12 months’ time, they want the additional revenue collected through this measure to be refunded to fuel manufacturers or fuel importers, or whether they want to see this additional revenue invested in job creating, productivity enhancing road infrastructure,” Senator Cormann said.
Opposition Leader Bill Shorten attacked the move, saying Prime Minister Tony Abbott was sneaking in a new petrol tax.
“Today he ambushes Australian motorists, he ambushes the Parliament of Australia, and through the backdoor he’s launched a sneak attack on the wallets and the cost of living of every Australian,” he said.
“The Abbott Government are going to bypass the Parliament of Australia to impose new petrol taxes on every motorist in Australia.”
The Australian Automobile Association also condemned the move.
“I think frankly it’s weak, it’s sneaky and it’s tricky – and I’ve to say as well I think it’s also quite a gutless move,” executive director Andrew McKellar said.
“The Government has not even put its original budget measure to the Senate at this stage, so the original budget proposal hasn’t even been tested.”
The Government has repeatedly promised to spend every dollar on new roads.
“The Government is reintroducing fuel indexation where every dollar raised by the increases will be linked by law to the road-building budget,” Mr Hockey said in his budget night speech.
source: abc.net.au
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