The Coalition is calling on the Albanese Government to immediately halve the fuel tax for three months to provide urgent cost of living relief to Australian households and small businesses facing a deepening national fuel crisis.
This is a practical, immediate step the Government can take today to ease pressure on families already stretched by the Government’s cost of living crisis who are now being hit by surging fuel prices.
The tax cut would reduce fuel prices by around 25 cents per litre for three months.
A corresponding reduction in the Heavy Vehicle Road User Charge should also be provided.
Leader of the Opposition Angus Taylor said Australians were being hit by a perfect storm of Labor’s home-grown inflation crisis and escalating global fuel pressures driven by conflict in the Middle East.
“Inflation has already beaten this Government, and now a national fuel crisis is making it worse,” Mr Taylor said.
“Anthony Albanese is asleep at the wheel. He needs to stop watching and start acting. Australians are hurting.
“Families across the country are seeing their standard of living collapse, yet Labor does nothing.
“Right now, what we need is an immediate tax cut at the bowser and a government that gets fuel to where it is needed.”
Leader of the Nationals Matt Canavan said the situation on the ground showed a clear failure of government.
"The budgets of Australian families were already stretched before the Iran conflict. Now thanks to Labor's war on fossil fuels Australians are at breaking point," Senator Canavan said.
"Our proposal to halve the fuel excise is an affordable response to provide Australian families with some 'breathing space'.
"Around 500 petrol stations are dry or without at least one type of fuel.
“The Government says there is enough fuel in the system, but if that is true, then this is a failure to get fuel where it is needed."
Despite the Government likely being gifted windfall gains in the budget because of the crisis in the Middle East, the Coalition is also putting forward sensible options to fund this relief, ensuring it is delivered without adding to inflationary pressure.
This relief can and should be offset through sensible reprioritisation, including:
- Ending the Electric Car Discount.
- Reversing the Government’s green hydrogen subsidies and tax credits.
- Pausing and strengthening integrity controls around the Home Battery Scheme.
These measures will fully fund the approximate $1.5 billion temporary tax cut for Australian motorists while also easing the broader demand pressures that are driving inflation.
The Coalition is ready to work constructively with the Government to deliver targeted, fully funded relief – driven by sensible savings, not new higher taxes.
This will ensure Australians aren’t forced to pay the price of a global fuel shock on top of a cost-of-living crisis caused by record government spending.