The step-down will means a savings of 16¢ per litre for motorists from July 1, less than the 26¢ subsidy the government has covered since the outbreak of war in Iran sent petrol prices rocketing past $2 per litre.
The extension – at a reduced rate – and the cost to continue a subsidy for the Heavy Vehicle Road Users charge will cost the government about $400,000 in lost earnings, it was revealed on Sunday, while saving road users about $11 when filling a 65L tank.
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The heavy vehicle road user charge will be 16¢ per litre across the same period, after the charge had been cut to zero for the past three months.
Mr Albanese told Sky News that he acknowledged another “global shock” such as the US-Iran deal collapsing could result in further changes.
“This is about providing certainty, of course, we do live in a volatile world, so were there to be a massive global shock again, my government will always respond,” he said.
“But this is about providing some certainty going forward into the future, we only had the peace deal between the United States and Iran announced in the last week, and that’s why, in the lead up to the end of the financial year, June, there was a need for us to delay a decision to this point.
“On July 1, every Australian worker will get a tax cut — there are other relief measures coming in for the new financial year going forward, and that will make a positive difference to people’s living standards and cost of living prices.”
Mr Albanese said he was “confident” that state and territory leaders would also agree to a step down approach for the GST windfall they voted to do without for the past three months.
“I’ve got national cabinet meeting on Monday, and I’ve already had discussions with the chair of the Council for the Australian Federation, Premier Roger Cook, to inform him that we’ll take a proposal and I am confident that the states will, just as they did the right thing beforehand, step down accordingly,” he said.
Opposition Leader Angus Taylor said he understood the “logic” behind tapering off the fuel excise amount.
“We have been supportive of cuts to the fuel excise from the start, in fact, we proposed it in the first place and Labor copied us. It should be offset as our proposal was way back then because we don’t want to see a surge in inflation,” he told Sky.
“We have seen a surge in inflation in recent months under this Government, they told us, they told Australians, that they had beaten inflation, but it is clear that inflation has beaten this government.
“They’ve failed time and time again to deal with it, and that’s why cost of living relief, of course, is necessary.”
The Australian Chamber of Commerce and Industry’s Andrew McKellar said the decision provided “welcome short-term certainty for freight operators.”
“We have seen fuel prices come down, but the situation is still highly uncertain and businesses remain on edge due to ongoing pressures around fuel supply,” he said.
“Extending this support provides some welcome short-term certainty for freight operators and the many small and medium businesses that depend on them.
“The government should remain ready to respond if conditions deteriorate.
“Stability in fuel supply and pricing is critical to keeping goods moving and keeping costs under control.”
