Government Vague on Excise Cuts Under CPRS


Australia’s peak motoring body, the Australian Automobile Association (AAA), has called on the Federal Government to explain how fuel excise will be cut to offset the price impact of emissions trading.

In announcing support for the Government’s position on a Carbon Pollution Reduction Scheme (CPRS), AAA said the proposal to cut excise should not be seen in any way as assistance to motorists as they should not be further disadvantaged under an emissions trading scheme given they already pay 38 cents a litre in fuel excise.

In its submission to the Government’s Green Discussion Paper on a CPRS, AAA also supports the cap and trade approach, the inclusion of transport in the CPRS, the imposition of emissions permits on upstream petroleum refiners and importers, investment in clean energy options and the adoption of fuel and energy efficiency measures.

AAA Director of Policy and Research, John Metcalfe, called for the Government to stipulate how it will determine its carbon price for fuel and to confirm how it will cut excise accordingly to allow motorists some relief.

“The Government’s intentions as to how the excise cut would be applied in practice are somewhat vague.  AAA expects the Government to provide more detail on how it will work, so that the price impact is completely offset and the mechanism easily explained to motorists,” Mr Metcalfe said.

“Research shows the vast majority of motorists are concerned about climate change and looking for advice on how to reduce or offset their vehicle’s environmental impact.

“This is an issue which requires all sectors of the community to take responsibility – we want to be a part of the solution.”

The AAA submission also proposed the excise cut should be the first step in reforming fuel taxation and expects fuel excise to be included in the Government’s wide-ranging review of taxation being conducted by Treasury Secretary Ken Henry.

AAA’s CPRS submission can be downloaded at



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