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Fuel excise is a federal government tax of about 50 cents on every litre of petrol or diesel that you buy.
It accounts for between 25 and 30% of the average price at the pump (GST accounts for another 10%).
Fuel excise is used to help pay for our roads. It is also used for other land transport projects – such as rail and public transport – that can take pressure off roads.
Motorists like you are making a crucial contribution that plays a big role in government revenue.
The federal government expects to collect $15.71 billion in net fuel excise in the 2023-24 financial year.
A typical household pays around $1,283 in fuel excise every year.
Use our fuel excise calculator to find out how much you pay.
You might be surprised to know that over the past decade less than 58% of revenue from this tax has actually been spent on land transport.
More than 42% has been spent in other areas.
That’s about $53 billion of fuel excise that wasn’t spent on road safety upgrades, congestion relief, public transport, or major regional connections.
That $53 billion could have built over 1,000 km of tri-lane metro highway or more than 2,000 km of dual-lane regional highway.
Alternatively, it could have built over 25,000 km of single-lane rural highway. That’s equivalent to nearly twice the circumference of Australia, or nearly two laps around our continent
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Allocating all fuel excise to land transport investments would give motorists a fair return on their contribution to government revenue.
It would make our roads safer and more efficient. Many peoples’ commutes would become quicker and smoother.
How would your commute look if 100% of fuel excise was spent on land transport in our communities?
Join more than 100,000 Australians to keep up to date with fuel excise spend.