Labor won’t match Dutton’s fuel excise plan that would save Australian drivers about $750
The Coalition insists its offer to halve petrol excise for 12 months will provide an instant boost to family budgets, but Labor says it has its “own plan”. Vote in our poll.
Federal Budget
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Treasurer Jim Chalmers says the Labor government will not match the Coalition’s fuel excise and denies the proposal would save Australians more money in a year.
Opposition Leader Peter Dutton will use his final budget in reply on Thursday to announce a 12-month halving of the fuel excise from 50.8 cents to 25.4 cents, which the Coalition has estimated would cost $6 billion.
This would mean a driver who fills up a 55 litre tank once a week would save about $14 a week, averaging to about $700 to $750 in one year.
The Coalition says the move would save taxpayers more than Labor’s tax cuts, which passed the Senate on Wednesday night and would save average households $5 a week from the 2026-27 financial year.
Speaking with Sky News on Thursday, Mr Chalmers said Labor had its “own plan” and wouldn’t match the excise.
“The Coalition doesn’t have any plans to help people with the cost of living in an enduring way and what it means is the economic policy that they will take to the election is higher taxes for every taxpayer, secret cuts to pay for nuclear reactors and no ongoing help with the cost of living.”
Mr Dutton said the fuel excise cut would make a “real difference” to families and small businesses.
“And, 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,” he said.
“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.”
The pledge is expected to be one of several announcements unveiled by Mr Dutton on Thursday, with measures addressing rising power prices also likely to be included.
There is mounting speculation the Coalition will commit to some kind of domestic gas reserve for the east coast to sure up supply under its plan to slow the rollout of renewable energy and bring seven nuclear plants into the power mix by 2050.
Mr Dutton’s pivot to alternative cost of living measures follows Labor pushing its $17.1bn income tax cut, which will deliver most Australian workers a $5 a week saving from July 2026, growing to $10 a week by the following year, through the parliament one day after the policy was announced in the federal budget.
The Coalition has refused to back the cuts, described by Mr Dutton as a “hoax” due to the minimal benefit and delayed start. The tax cuts passed the Senate last night.
But Treasurer Jim Chalmers said to vote against the cuts, which will progressively drop the 16 per cent tax rate for income between $18,201 and $45,000 down to 14 per cent, was to “stand against more cost of living relief that Australians need and deserve”.
Mr Chalmers said he understood there was “always an appetite to do more” on tax relief, but Labor had chosen to do it in the “most responsible way we can”.
Anthony Albanese said Mr Dutton would go to the election promising to cut everything but tax.
“And now we know that he’ll cut everything,” the Prime Minister said.
“He’ll cut education, he’ll cut health, but he won’t cut your taxes.”
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