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Calls to remove fuel tax

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Remove the fuel tax and allow our families to save money at the pumps.

That’s the call from Member of Barker and shadow transport minister Tony Pasin, claiming the Labor Government’s “cost of living crisis was out of control” and one just needed to look at the high fuel prices.

Mr Pasin said Australians were paying record-high prices for their fuel when they could least afford it, and fuel excise being collected by the government wasn’t being reinvested into roads as it should be.

“It’s a bitter pill to swallow for regional motorists who, on average, pay more for fuel and drive longer distances on some of the most dangerous roads,” he said.

He claimed Australians had no confidence in this out-of-touch, incompetent government.

“In government, the Coalition cut the fuel excise in half for six months, saving Australians 22 cents a litre every time they filled up their car with petrol or diesel.

“It saved $30 a week for a family with two cars, or $700 over six months.

“Anthony Albanese is so distracted and out of touch that he has no idea of the costs that motorists are paying at the bowser.

“Costs of living continue to rise while the Albanese Labor Government sits distracted and unable to take the action needed.”

The fuel excise was introduced in 1901 as a tax on motorists to fund road construction and maintenance.

But Mr Pasin says for decades, governments have failed to invest all excise receipts into land transport, instead using the tax as a general revenue raiser.

As of August 1, Australian motorists had to pay a fuel excise of 48.8 cents per litre – up from the previous 46 cents last year.

In the October 2022 budget, the government said it would spend $12.45 billion on land transport infrastructure, which would have been equivalent to 91 per cent of the fuel excise collected from motorists in the 2022–23 financial year.

But the Final Budget Outcome analysis released on October 6 showed the Commonwealth collected $14 billion in fuel excise but delivered only 68 per cent—or $9.5 billion—on land transport funding, including roads.

Fuel excise is expected to raise $14.74 billion in 2023–24, $15.82 billion in 2024–25, and $15.87 billion in 2025–26.

Retail fuel prices in Australia include a double tax, with GST applied at the rate of 10 per cent (or 1/11 of the total price paid).

The cost of fuel rose 9 per cent in August compared to the month before. Our prices are now 14 per cent higher than a year ago.

Naracoorte Community News 25 October 2023

This article appeared in the Naracoorte Community News.

Related story: Fuel tax bite

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