RAA is disappointed by today’s Federal Government announcement to increase fuel excise without Parliament’s approval, and without a commitment to spend the funds on road improvements.
RAA Senior Manager Mobility and Automotive Policy Mark Borlace said increasing the fuel excise tax will hit every Australian household.
“The decision will have the greatest impact on households that have no other viable alternative travel option, such as people in Adelaide’s outer suburbs and regional areas who rely on their cars,” said Mr Borlace.
“These areas are already suffering from inflated fuel prices compared to Adelaide’s inner suburbs, so this excise increase will create further pain at the pump for these motorists.”
From 10 November 2014, the fuel excise rate will increase from 38.1cpl to 38.6cpl, with indexation to return to biannual CPI indexation from 1 February 2015.
“If it’s not validated within 12 months, the money raised via the fuel excise should be returned to motorists,” said Mr Borlace.
“Motorists already pay at least $30 billion on all Government taxes and charges in total each year, and this is just another crash grab that will hurt all motorists.”
RAA wants the Federal Government to commit to spending the additional excise collections on transport projects, as was initially promised in May this year.
“Motorists are at risk of being charged yet again without directly benefiting from this increase,” said Mr Borlace.
“We want to see a commitment from the Federal Government that the money raised from the fuel excise increase be reinvested into improving roads and public transport.
“Motorists already contribute more than $15 billion per annum in fuel excise collections nationally, but only $5.5 billion will be spent on road projects this financial year.
“In addition, the ACCC no-longer actively monitors daily fuel prices so we’re concerned there won’t be anyone watching to ensure retailers don’t take advantage of this tax increase and inflate fuel prices.”
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