Labor Cuts Fuel Excise by 26.3c

arkie0 on 30/03/2026 - 14:19

Albo will cut the fuel excise on petrol and diesel for three months, cutting prices by 26.3 cents per litre, and the road user charge for trucks.

Do you support these cuts?

“What we’re announcing today will reduce the cost of a 65-litre tank by about $19. So it is a substantial cost-of-living relief. It is timely, it is temporary, and it is responsible,’’ Dr Chalmers said.

Or is it indeed a con job as suggested by Chalmers

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.
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.

Poll Options

  • 82
    I support the fuel excise cuts
  • 336
    I do not support fuel excise cuts; it's a con job.
Automotive Fuel

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  • Benoffie on 30/03/2026 - 14:34
    +35

    Most people will fall for this but it speaks to the fundamental mismanagement that is going on

    • emergency restrictions are still not in place
    • no significant alterations to sovereign supply or export allowances
    • no consideration to changes in net zero, especially relating to business
    • no discounts, concessions or freebies for mass transport (relying on states to shoulder that but could easily put in something similar to the SA pensioner free travel scheme and apply it to Greyhound, Stateliner, Vlink etc as a voucher system)
    • no reduction on luxury car tax, EV taxes etc

    They may come later but I doubt it

    • tenpercent on 30/03/2026 - 14:55
      +10

      no reduction on luxury car tax

      You had me going then I read the luxury car one. How would reducing luxury car tax help?

      • jv on 30/03/2026 - 15:12
        +16

        How would reducing luxury car tax help?

        How does the luxury car tax still fulfill it's purpose, which is to protect the Australian car industry?

        Dropping the tax would encourage people to buy a new car, therefore very likely to be more fuel efficient and friendlier to the environment.

        • Stewardo on 30/03/2026 - 16:00
          +9

          Plus the Euro cars are often off the road getting serviced, this would save fuel and ease congestion.

        • tenpercent on 30/03/2026 - 15:22

          How does the luxury car tax still fulfill it's purpose, which is to protect the Australian car industry?

          That isn't on topic.

          Dropping the tax would encourage people to buy a new car, therefore very likely to be more fuel efficient and friendlier to the environment.

          That's long term thinking for a short term problem.

        • Some Random Guy on 31/03/2026 - 13:11

          Luxury car tax is for cars over ~$70k, no?

          How does scrapping the tax help someone buying a ~$18k used EV

          • jv on 31/03/2026 - 13:14

            @Some Random Guy: It helps buying the high end EVs… For Premium OzBargain members.

    • MDSUXKS on 30/03/2026 - 19:08
      +3

      Yep reduce the GSt on EV's you start to save on fuel pretty quick and get more revenue on REGO. is a Win Win in this situation

    • perhaps on 30/03/2026 - 14:39

      Aus stalemated the FTA with europe for years because we refused to drop LCT. Europe finally buckled and got the deal going.

    • BuddhaBoy on 01/04/2026 - 12:29

      Excellent points

  • jv on 30/03/2026 - 14:21
    +14

    Labor Cuts Fuel Excise by 26.3c

    Does it stack with Flybuys 4c off???

    • Jimothy Wongingtons on 30/03/2026 - 14:56
      +7

      not compatible with shopback, cashback, flybuys/ everyday rewards, ozbargain premium, other promo codes, secret handshakes, sexual favours or similar.

      • Gunnar on 30/03/2026 - 15:17
        +3

        Stonecutters membership?

      • jv on 30/03/2026 - 15:22

        Is there capital gains tax if you sell the petrol in your car at a profit?

        • Jimothy Wongingtons on 30/03/2026 - 15:25
          +2

          if u dont tell i wont

        • Muppet Detector on 31/03/2026 - 22:47

          Is there capital gains tax if you sell the petrol in your car at a profit?

          Presuming the petrol was an asset rather than a consumable;

          • CGT doesn't usually apply to personal use assets under $10,000.

          • CGT specifically does not apply to cars, motorcycles, or similar vehicles, which extends to the fuel used to run them.

          List of CGT assets and exemptions

          • jv on 31/03/2026 - 22:54
            -1

            @Muppet Detector:

            which extends to the fuel used to run them.

            You made that bit up…

            • Muppet Detector on 31/03/2026 - 23:01

              @jv: No, it wasn't I that made it up.

              Fuel is a consumable.

              • jv on 31/03/2026 - 23:02
                -1

                @Muppet Detector:

                Fuel is a consumable.

                I'm buying it purely for investment purposes.

                • Muppet Detector on 31/03/2026 - 23:32
                  +1

                  @jv:

                  I'm buying it purely for investment purposes.

                  You can't.

                  ATO would consider it for business purposes and not as an investment because of all the legal and licensing requirements and compliances to sell the fuel.

                  • jv on 31/03/2026 - 23:34
                    -2

                    @Muppet Detector:

                    of all the legal and licensing requirements and compliances to sell the fuel.

                    Nobody checks on Facebook Marketplace.

                    • Muppet Detector on 31/03/2026 - 23:39

                      @jv: I broke jv.

                      A post with no words in bold or the inclusion of a link.

                      Nobody checks on Facebook Marketplace.

                      Not much point listing it for sale there then, is it?

                      So, now we've come full circle.

                      No sale. No profit. No CGT.

                    • Muppet Detector on 31/03/2026 - 23:44

                      @jv:

                      Nobody checks on Facebook Marketplace.

                      If you don't register for an excise license with the ATO, how are you going to claim CGT from the ATO?

      • 87percent on 30/03/2026 - 15:39

        But should I get solar and battery at my home?

        • LFO on 31/03/2026 - 12:01

          But will they catch fire …

  • perhaps on 30/03/2026 - 14:30
    +14

    Not gonna do much if the price will rise by that in a weeks time🤷‍♂️

  • MS Paint on 30/03/2026 - 14:30
    +12

    How much extra are they getting on the GST on fuel? (You know, the other tax on fuel)

    • BOGOF on 30/03/2026 - 14:35
      +13

      GST is charged on the excise inclusive price of the fuel, so a tax on a tax.

      • JDMcarfan on 30/03/2026 - 22:13
        +3

        But that case in point the problem. Fuel up over a $1p/l means GST has increased approx 10-12c per litre too.
        So they’ve effectively only reduced gov taxation 15c, whilst working against core economics principles and increasing fuel demand further whilst supply is scarce.

        Removing the Heavy Vehicle fees is smart. Further subsidies to transport and logistics would be smarter than cutting taxes for the masses.

        But they’re all self serving people, whatever fools the masses and buys them good looks for the next election

        • Onemoredeal on 30/03/2026 - 22:16
          -2

          Business don’t pay GST they claim it back , they by far use the most fuel

          • R4 on 31/03/2026 - 09:34

            @Onemoredeal: They use the most diesel for sure but not petrol

          • JDMcarfan on 31/03/2026 - 12:24

            @Onemoredeal: Fair point, forgot about that. Business do get the full discount then so a little more logical than I thought, but still direct subsidies to fight inflation from a B2B perspective will minimise the impact across the board.m

      • imurgod on 01/04/2026 - 16:18

        Insurance is the same. Some 40% of your premium is taxes and taxes on taxes.

    • Some Random Guy on 31/03/2026 - 13:10
      +2

      If you listened to the press release, states have agreed to not collect the windfall GST…

      • MS Paint on 31/03/2026 - 13:21
        -2

        Why would I waste my time doing that?

  • pegaxs on 30/03/2026 - 15:50
    +12

    And fuel companies will just raise the fuel price up 26¢/litre just to skim that into their own pockets. This will do (fropanity) all except give people a weeks worth of discounts before the price is jacked again.

    • tubeidea on 31/03/2026 - 03:44
      +2

      But the government said that they were going to stop fuel companies from price gouging.. surely they wouldn't lie?

    • RockyRaccoon on 31/03/2026 - 07:53
      +1

      Thats BS, they are smart operators, they will reduce it by the 26c, then leave it there while the natural drop that comes when the oil fluctuates down, but increase it when it fluctuates up.

      However just like everything, the cost to them isnt that great, as the tax is a percentage of fuel prices, so they already had gained an increase in revenue as it lifted. this is just cutting the windfall gain in tax they had made with the price increase

    • Some Random Guy on 31/03/2026 - 13:17

      Was done during covid. Was shown that >90% of the excise cut made it to consumers (without the government threatening legal action for companies not doing so)

  • wannagrababargain on 30/03/2026 - 16:44
    +12

    Oz Govt:

    "We have a supply side problem with housing, let's solve it by increasing demand through immigration"

    Also Oz Govt:

    "We have an oil supply side problem, let's solve it by increasing demand by lowering the fuel price"

    • brendanm on 30/03/2026 - 18:21

      Logical thinking is not their strong suit.

    • frewer on 02/04/2026 - 18:04

      After Easter, Oz Govt:

      "There will be fuel rationing, so that we can look after each other better. In order to be fair for everyone, we will implement Digital ID and Digital Currency."

  • rambutann on 30/03/2026 - 15:56
    +10

    The price is what it is to tame demand when analyzed against inbound supply.. it's got very little to do with the price of oil in the short term.

    Excise cut is a stupid idea. Guarantee fuel prices will be back where its at today within a few days of the cut.

    • pegaxs on 30/03/2026 - 16:15
      +3

      It's like every other government incentive… Prices are low pre-incentive… Post incentive, prices just happen to go up about the same amount of the rebates on offer…

      • brendanm on 30/03/2026 - 18:19
        +3

        It truly is one of life's mysteries. "Home builder grant" of $20k. Suddenly house prices go up $20k. It's quite bizarre. It's almost like giving out free money decreases the value of that money.

  • apsilon on 30/03/2026 - 16:28
    +8

    Won't make a difference. Fuel prices will go up the same day by the same amount. Just a coincidence of course, something about being part of the cycle.

  • sween64 on 30/03/2026 - 19:51
    +8

    "When supply is constrained, supporting demand through subsidies or tax cuts does not act on the availability of supplies and ultimately only amplifies inflation," he told the lower house's finance commission.” - French Finance Minister Roland Lescure

    This guy gets it. ABC News.

  • whatgift on 30/03/2026 - 21:00
    +8

    Here's the problem - other parties said they would do it, and Labor couldn't just sit back and do nothing. So now they do something, and still people are complaining??? Labor apparently can't do anything right!

    • arkie0 on 31/03/2026 - 01:27

      the proverbial if everyone jumped off a cliff, would you do it too scenario

      Not saying I have all the answers to the better policy options, but Chalmers literally went from calling it a bad option to implementing it 2 years later.

    • gromit on 31/03/2026 - 19:39

      The LNP and sky news commentators were being clueless morons, now Labor have decided to follow those clueless morons rather than act sensibly, this is a failure on all sides of politics. In a rare sign of sanity they were originally poo pooing this idea for the garbage it was, now they go and let themselves get wedged on the issue because they are blabbering idiots unable to explain the situation.

  • KangaDrew on 30/03/2026 - 17:00
    +7

    Fuel prices spiked the moment the Strait of Hormuz was blocked. Except we're meant to be on a 7-10 day lag between when the wholesale oil price changes and when they're reflected at the pump, but they started gouging the public within a day.

    My poll vote is as follows: I support the fuel excise cuts if they immediately reduce pump prices by the 26.3c reduction the excise is meant to be. Not a slow walk down the stairs over 7-10 days, but by an elevator drop - tomorrow. Otherwise, yes, it's a con job.

  • havabeer on 30/03/2026 - 15:34
    +6

    Does absolutely nothing for fuel security, which is the bigger issue. Makes about as much sense as allowing 5% home deposits to make getting into a home cheaper.

  • perhaps on 30/03/2026 - 14:38
    +5

    If fuel is $2.50/L. 75c of that is just tax (pre excise cut).

    • pegaxs on 30/03/2026 - 16:12
      +12

      Fuel excise is currently $0.526/litre
      GST on $2.50 would be $0.2272

      So, fuel at $2.50/litre, $0.7532 would be tax… 30% of the $2.50 is tax.

      Not sure why the negs, math checks out…

      • Euphemistic on 30/03/2026 - 17:13
        +9

        Negs for not using 'maths'

      • TheMills on 31/03/2026 - 23:19

        Perfect!
        Its a shame that GST is applied on the excise as well, tax on tax!

  • brendanm on 30/03/2026 - 15:12
    +5

    Wow 26c, I suppose that's a decent amount for the service to pocket as pure profit like they did during covid.

    • Some Random Guy on 31/03/2026 - 13:16
      +2

      I was with the whinge merchants like yourself but studies show that >90% of the cuts were passed onto consumers and this was during coalition rule where the ACCC had to deal with a lot of stuff with little budget.

      So if 90% makes it to us that'll be great, but I wouldn't be surprised if >95% makes it this time.

      If fuel prices go up globally, then, yes, it'll look like the excise cut did nothing. But that's optics. The truth is it'll be ~26c less per litre than otherwise.

      • brendanm on 31/03/2026 - 17:50

        It's not whinging, it's just a fact. A lot cheaper for them to do a study that says that everything's all good than it is to actually do something and prosecute.

  • try2bhelpful on 30/03/2026 - 17:27
    +4

    Where is the poll option “Solve this by Trump dropping dead from à heart attack”.

    • mickyd on 03/04/2026 - 00:28

      Don’t forget to include his puppet master who’s also involved.

  • Lemond1977 on 30/03/2026 - 15:17
    +3

    The govt needs to do what it can to keep us out of a recession.
    Better to have the economy still moving, otherwise they won't be receiving tax they be paying out for unemployment benefits

  • Pufff on 30/03/2026 - 17:27
    +3

    So more transfer of wealth to the corporations. These types of 'savings' go straight into their pockets.

    • brendanm on 30/03/2026 - 18:25
      +3

      Just like covid. Probably the biggest wealth transfer in history.

    • tenpercent on 30/03/2026 - 18:04
      -2

      It's worse than the pink batts.

      • Talonparty on 30/03/2026 - 20:23
        +2

        Worse than homebuilder or jopkeeper schemes? Pink bats seems an archaic reference…

        • tenpercent on 31/03/2026 - 11:30

          Pink bats seems an archaic reference

          Albo was a Minister at the time. The reference is archaic as he is.

          • MITM on 31/03/2026 - 16:52
            +1

            @tenpercent: No - it was Peter Garratt. People died on his watch installing Pink Batts.

            • tenpercent on 31/03/2026 - 21:45

              @MITM: Albo was a Minister in Krudd's cabinet at the time.

      • JIMB0 on 30/03/2026 - 19:25
        +1

        Wasn't it the libs calling for the fuel excise cut?

        • Euphemistic on 30/03/2026 - 19:56
          +4

          Theyre the opposition they can say whatever they think opposes the government without having to follow through. When its not close to an election they can get away with even more.

        • tenpercent on 30/03/2026 - 19:29

          Peas in a pod.

  • abuch47 on 30/03/2026 - 19:50
    +3

    populist reactionary policy. change how Australia is developed, spend on PT infra and make it free TOMORROW. Have security if your populace requires a resource especially in one of the most car centric countries in the world. Stop lobbyists from killing bike lanes like they have in Adelaide CBD.

  • NotaDeal on 31/03/2026 - 19:34
    +3

    How about tax LNG exports at 25% rather than 0% and remove fuel tariffs all together? the 17bill lost in fuel tariffs would be covered by the 17bill gained in LNG exports. but Albo in bed with Chevron, Santos, Shell etc….

  • SuperMid on 31/03/2026 - 21:01
    +2

    Who will think of the v8 silverado owners

  • Dack Smith on 31/03/2026 - 23:26
    +2

    It’s a good start but I think the entire excise tax should be abolished.

    Stop taxing ordinary battlers to feed bureaucracy

  • BeoWulf on 01/04/2026 - 00:38
    +2

    The government taxes us on top of the taxes we've already paid and is coming up with a new way to triple penetrate us. We get taxed on income to only get taxed on all goods and services for 10%, another 50c on every litre of fuel, taxes on purchasing/owning cars, houses, stocks, CGT, FBT, inheritance, children, medicare, property, council and taking out your superannuation early. What is this stupid government doing. Time to erase these stupid politicians(labour/liberal/greens/one nation) considering that they've done nothing and continued to allow hundreds of thousands of jobs to be offshored to the subcontinent. This country gets worse and worse as each year goes by.

    The government taxes the working class like a pimp whilst those in the NDIS($63bn projected), public sector get paid disproportionately.

    • Mad Max on 01/04/2026 - 20:58

      They even have a tax on the tax. The charge 10% GST on the actual fuel excise component (which is already a tax).

  • jv on 30/03/2026 - 14:22
    +1

    It is timely, it is temporary, and it is responsible,’’ Dr Chalmers said.

    On a few days ago, he said it was not… ????

    • freefall101 on 30/03/2026 - 16:38
      +10

      A few days ago it was not the right time for the timing of an excise fuel cut. However the circumstances have, with the movement of time, increased the timeliness of this timed action ensuring that the excise cut is now more timely than previous dates would have been. With the shifting of the temporal landscape, to act too soon would have been premature and to act too late would have been negligent, but the government has precisely determined that it is timely to act now.

      Our policy has always been the same, but the timing of the appropriateness has now become… timely.

      Also, I highly recommend listening to the Yes Minister and Yes Prime Minister recordings on Audible. I've been really enjoying them lately.

      • jv on 30/03/2026 - 17:14

        A few days ago it was not the right time for the timing of an excise fuel cut.

        Why? Did he have something on, on the weekend?

  • sween64 on 30/03/2026 - 16:08
    +1

    65L tank? How many car models have a tank that big?

    • brendanm on 30/03/2026 - 18:20
      +2

      Lots, mine is 100, only $330 to fill that bad boy up at the moment. LandCruiser/patrol etc is bigger again.

    • Euphemistic on 30/03/2026 - 19:53
      +1

      That big or that small? My ute has 80l. My old forester was about 60.

  • tenpercent on 30/03/2026 - 17:08
    +1

    Just realised there's a poll.

    I'm conflicted between the two choices.
    On one hand I support reducing the excise.
    On the other hand I also know it's a con.

    • saltypete on 31/03/2026 - 09:36
      -1

      From OPs comments it's ONs version of a statistical analysis of the issue. It'll be on Sky in a few days.

  • TheBilly on 31/03/2026 - 14:57
    +1

    Con job.

    Because all industry is privatized so they are relying on an honesty system for this to be passed on. Which it won't get passed on. The servos will just look at the pricing of other servos around them and match the pricing. If no one in the area drops their price, then why would they drop theirs. Excise and price at the bowser are 2 completely different mechanisms that are indirectly linked, not directly linked.

    Its like flying a plane over a poor area and just throwing cash out the window and hoping who needs it will get it and then proclaiming that you did your job.

    I would say that energy needs to be nationalized but the government is so incompetent this is not even a practical solution, they will only make it worse.

    Maybe some practical measures would have been:

    • Allocate emergency funding to re open Australian refineries
    • Mandate in law that locally mined oil is to be refined and sold in Australia at a percentage of say 50% of production capacity
    • spaceflight on 31/03/2026 - 22:08
      +1

      Allocate emergency funding to re open Australian refineries

      Which one do you think is just sitting ready to be reopened?

      Port Stanvac (SA): Mothballed in 2003 by ExxonMobil, this Adelaide refinery was permanently closed in 2009 and is currently being redeveloped into a 3,600-home residential area.
      Kwinana (WA): Closed in March 2021 by BP, this refinery was converted into a fuel import terminal, with plans for a future renewable fuel hub.
      Altona (VIC): Shuttered by ExxonMobil in August 2021, this facility was also converted into a fuel import terminal.
      Kurnell (NSW): Closed in 2014 by Caltex and converted into a fuel import terminal.
      Clyde (NSW): Closed in November 2013.
      Bulwer Island (QLD): Closed in 2015.

      Where are the skilled workers to run the refinery?

      Where is the oil coming from for them to refine?

      • TheBilly on 01/04/2026 - 12:00

        That’s why I said emergency funding. They aren’t sitting ready to open? Why would you allocate emergency funding to open a refinery if they are already sitting ready to open? Re open, make new, the purpose of emergency funding is to resolve the problem “lack of local supply and energy security”

        Emergency funding will import skilled workers. Thats the point of emergency funding. Extreme solutions, throw extreme money at it.

        Carnarvon and Gippsland.

        • spaceflight on 01/04/2026 - 21:06

          They aren’t sitting ready to open?

          No.
          Why would they be?
          Who is paying for them to be sitting ready to open and immediate notice?

          Why would you allocate emergency funding to open a refinery if they are already sitting ready to open?

          Good question. Why would you?

          Re open, make new, the purpose of emergency funding is to resolve the problem “lack of local supply and energy security”

          Which one do you think is just sitting ready to be reopened?
          Where are the skilled workers to run the refinery?
          Where is the oil coming from for them to refine?

          Emergency funding will import skilled workers.

          Will it?
          From where?

          Thats the point of emergency funding. Extreme solutions, throw extreme money at it.

          Which one do you think is just sitting ready to be reopened?
          Where are the skilled workers to run the refinery?
          Where is the oil coming from for them to refine?

          Carnarvon and Gippsland.

          Are places.

          What about them?

          • TheBilly on 07/04/2026 - 09:13

            @spaceflight: These are all questions for the policy makers who are responsible for ensuring our energy security and allocating the necessary resources to execute it

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