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Fuel Excise Deal to leave Motorists Short-Changed

23.6.2015

Australia’s peak motoring body, the Australian Automobile Association (AAA), says today’s deal between the Government and the ALP to reintroduce fuel excise indexation fails to provide motorists with a fair and acceptable link between the enormous amount of taxes they pay and the return they get in road funding commitments.

AAA Chief Executive Michael Bradley said: “Australian motorists currently pay more than $15 billion in fuel excise every year and over the past two decades, less than half of this money has been committed to transport funding.

“Thanks to today’s deal, Australian motorists will now pay an extra $23 billion in tax throughout the next ten years, and there will still be no adequate or meaningful link between this enormous tax contribution and future funding commitments to transport infrastructure.

“While today’s commitment to provide an additional $1.105 billion in funding for the Roads to Recovery Program over the next two years is welcome, the AAA believes motorists deserve a more sustainable and a more transparent link between the tax they pay when they fill up their car, and the Government’s investment in improved infrastructure,” Mr Bradley said.

The AAA’s analysis shows that even when payments to recipients of the diesel fuel rebate are taken into account, only 47.4 cents in every dollar of fuel excise paid by motorists since 1998 have been allocated to road funding by federal governments.

…ends.

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