3 days ago
21
Halving fuel excise would cost the government $6 billion, but instantly save motorists around 25 cents per litre of fuel at the bowser.
Opposition leader Peter Dutton will cut fuel excise in half in his first year, if chosen in the upcoming federal election, to ease cost-of-living pressures for motorists.
While cumulatively, cutting the excise from 50.8 cents to 25.4 cent for 12 months will cost the government $6 billion in lost revenue, the individual savings per year amount to around $750 – or $14 a week – according to average calculations.
Naturally, the more you drive, the more fuel you need, the more you would save, but if your chosen of transport is not a car that needs to be refuelled, there will be no impact to your bottom line.
However, businesses big and small running fleets or delivery drivers will benefit more.
Dutton’s promise is in response to the federal budget announced earlier this week, which would ease cost-of-living pressures down the line through tax cuts.
However, the Coalition leader is aiming to put money back in pockets "as quickly as possible", and could be rolled out almost instantly if elected to the top job in Australia.
"If elected, we will deliver this cost-of-living relief immediately – whereas people have to wait 15 months for Labor’s 70 cent a day tax tweak," Dutton said.
"This cost-of-living relief will make a real difference to families and small businesses – everyone from tradies, to mums and dads, to older Australians, and to transport delivery workers.
"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. Our plan will save many hundreds of dollars for families across Australia.
"Lowering costs to small businesses, means lower costs for goods and services at the checkout."
Labor’s tax cuts meanwhile, which have now been passed, will put around $5 a week back in pockets from 2026, increasing to $10 from 2027, and will cost a total of $17 billion.
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
