‘Con job’: Chalmers slams Dutton’s fuel excise

Peter Dutton’s promise to cut fuel excise as a “cost-of-living con job” has been rubbished by Labor. Here’s how much they claim you’d need to drive to save $1500.

Treasurer Jim Chalmers has hit out over Peter Dutton’s promise to cut fuel excise as a “cost-of-living con job” that would require people to drive 40,000km a year to gain the promised benefits.

A new analysis by Labor claims families would have to drive three times as much as the average household each year to get anywhere near the kind of benefit Mr Dutton is promising.

The Liberal Party first suggested that the cut would save a motorist who fills up a 55-litre tank each week — which figures from the Australian Automobile Association suggest is typical — about $14 a week.

Based on a two car family the Coalition suggested families could be better off by $28 a week or $1500 a year.

The Liberal Party then released modelling suggesting Australian workers could save up to $20 a week.

The example provided was of “a tradie in Geelong” if they commuted five days a week to Melbourne CBD – a round trip of 150 kilometres a day or two hours of driving.

In Western Sydney, a Penrith resident working full-time in Liverpool would save $9 a week if they drive a Hyundai ix35 compact SUV while those travelling to Mascot in the same car would save $12 a week.

But the Treasurer now says the Liberal Party has over claimed the savings from their temporary fuel excise reduction policy to suggest many people would be pocketing $20 a week.

Treasurer Jim Chalmers has labelled Peter Dutton’s promise to cut fuel excise a ‘con job’. Picture: Gaye Gerard / NewsWire

To save that amount, a family with an average car would need to drive around 40,000 kilometres per year. That’s once around the world and around three times the household average of 13,800 kilometres per year.

“Peter Dutton’s petrol promise is a cost-of-living con job,’’ Mr Chalmers told news.com.au.

“Families would have to drive three times as much as the average household each year to get anywhere near the kind of benefit they’re boasting.

“He’ll make all Australians pay higher taxes for the rest of their lives and he’s fudged the figures on his signature policy.”

He said it would require people to drive 40,000 kilometres a year to gain the promised benefits. Picture: NewsWire / John Gass

The petrol tax cut promise is also temporary and will only remain in force for 12 months.

“The Liberals are offering Australians no ongoing relief, whereas we have cost-of-living help which is immediate and ongoing,’’ he said.

“Australians would be thousands of dollars worse off if Peter Dutton had his way on tax cuts, wages and energy rebates and they’ll be worse off still if he wins the election because he will increase income taxes for every Australian taxpayer.”

Based on average distance travelled, the Treasurer said the average saving for a standard car would be closer to a quarter of what the Coalition is claiming.

Even with a less fuel-efficient car (and assuming average kilometres), the saving would be just 40 per cent of what the Coalition is claiming.

The big move would deliver a 25 cent cut to fuel. Pictured is Peter Dutton at a petrol station in Redcliffe Perth. Picture Thomas Lisson / NewsWirePicture Thomas Lisson / NewsWire

Mr Chalmers said that doesn’t even account for the fact that almost three quarters of a million households without a car would receive nothing under the Coalition’s plan.

The Liberal leader was back spruiking the petrol excise cut on Sunday using the $14 figure.

“Families are under financial pressure And we have heard their cry for help. We have met with them,’’ he said.

“We want to provide help now, not in 15 months’ time. Straightaway, as soon as the Coalition government is elected we will cut the fuel tax by 25 cents a litre.

The petrol tax cut promise is also temporary and will only remain in force for 12 months. Picture Thomas Lisson / NewsWire

“Our measure is instantaneous, and it is effective for every Australian who owns a petrol or diesel vehicle. Every time you fill up. You will save about $14 or about $750 over 12 months. For a family you will save around $1500 over 12 months.

“For a family with teenage children, that could cost parents more. This will save those families more money.”

A table showing petrol price decreases since March 2022 – and annual saving in Sydney.

Meanwhile, a separate economic analysis shows that petrol prices are much cheaper than before the last election.

Petrol prices are almost 40 cents per litre cheaper in key markets than before the Liberals temporarily cut fuel excise in 2022.

“Petrol prices were much higher under the Coalition and are much lower now under Labor,’’ Mr Chalmers said.

“At the last election, inflation was much higher and rising and now it’s much lower and falling and a lot of that is the big decrease we’ve seen in the price of petrol.

“We recognise that people are under pressure, which is why we’re coming at this cost-of-living challenge from every responsible angle with tax cuts for every taxpayer, energy rebates, Medicare bulk billing and much more.

“In contrast, Peter Dutton and the Coalition will legislate higher taxes for every taxpayer, and won’t provide any ongoing help with the cost of living. “

Originally published as ‘Con job’: Chalmers slams Dutton’s fuel excise