AAA Welcomes Announcement That Petrol Will Be Exempt From Carbon Tax


The Australian Automobile Association (AAA), representing eight constituent clubs with a combined total of almost seven million members, welcomed the Prime Minister’s announcement yesterday that a carbon tax will not be applied to petrol. AAA have advocated with comprehensive policies for a number of years that motorists should not be worse off under a carbon tax or emissions trading scheme, and hails this announcement as a major win for motorists.

Greg Goodman, AAA’s Acting Executive Director, stated, “We are very glad that the Government has listened and that our efforts have borne fruit. This is a wonderful result for our clubs’ members and the motoring public.”
AAA is also pleased that the policy is permanent, and will still apply when the transition to an emissions trading scheme occurs. As only eight per cent of Australia’s greenhouse gas emissions come from passenger vehicles, and many people have no public transport options to travel to work, do their shopping or drop their children off at school, a carbon tax on petrol would have been an unfair impost on struggling families.

Mr Goodman added, “There are better ways of reducing carbon emissions from passenger vehicles than imposing a new tax on motorists, who already pay more than their fair share of taxes in fuel excise. Before the last election the Government announced ambitious carbon emission standards for vehicles manufactured in Australia, and there are other means to reduce carbon emissions from driving such as promoting efficient driving techniques, and adoption of alternative fuels and vehicles.”

While AAA welcomes this announcement, clarity is sought on whether other motoring fuels such as diesel, LPG and ethanol will also be exempt from the carbon tax.

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