Opposition parties promise to cut fuel excise tax by half for one year if elected

Opposition leader Peter Dutton wasted no time in publishing his surprise tax cuts against workers.

Dutton has promised that if elected, the Union government will cut fuel consumption by 12 months, reducing it to 50-25 cents per liter.

The pledge arises as the opposition prepares to communicate a version of the budget.

Fuel Excise is a sales tax applied by the federal government to petrol and diesel, with extra revenue directed towards the government’s general income.

If that is reduced, the driver will reduce payments at Bowser.

“We’re going to abolish that,” Dutton told ABC Radio about low-income tax cuts for workers.

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In 2027, this will be reduced to 14%.

For taxpayers, this amounts to about $43 per week in 2026, and $50 per week in 2027.

The cuts will come on top of three levels of tax cuts by the government in July last year.

Opposition leaders criticized the tax cuts for failing to address the immediate need for financial support.

According to the Australian Automobile Association, an average midsize sedan with average components and fuel consumption consumes around $5,729 a year, or about $110 a week.

Excise tax paid is approximately $1,664 per year, or $32 per week.

If the excise tax is halved, the average driver could save $16 per vehicle, or $832 per year.

Dutton says the cut will save families around $1,500 a year.

While workers’ tax cuts apply only to workers, the coalition’s plan will only apply to people who drive cars and will not benefit electric vehicle drivers.

A lower fuel excise tax provides savings to the carrier.

Albanese Important

Prime Minister Anthony Albanese criticized the coalition’s plan to cut fuel excise taxes in place of tax cuts.

“This is what Scott Morrison did in the 2022 budget, but it was a time limit so it went away,” he told ABC Radio.

“This is also a time limit – there is no help from continuing living expenses for just one year.”