Australian Federal Government Appeal to the Poor on Fuel Taxes – But Still Billions of Dollars to Spend on Climate Action – Do You Stand Out for That?
Essay by Eric Worrall
The government of Albanese Australia claims revenue is too tight to expand the temporary fuel tax cuts saved motorists $6 billion a year – but they still have cash to spend $20 billion in renewable grid upgrades.
‘It’s going to be difficult’: Prime Minister Anthony Albanese admits cost-of-living crisis will get worse in the face of a rise in fuel prices
In the face of expected rate hikes and rising fuel prices, Anthony Albanese has admitted the coming months will be difficult for many Australians.
Joseph Huitson Digital reporter
September 5, 2022 – 10:45amPrime Minister Anthony Albanese has conceded that ending fuel consumption cuts will add to the cost of living problem Australians are already facing.
The former Union government announced a temporary halving of the six-month fuel excise tax – to 44.2 cents per liter – in the March Budget amid soaring petrol prices.
The measure, which ends September 29, will see the excise tax once again increase by 22 cents.
On the eve of a new week of parliamentary sessions, Mr Albanese said the announced budget cuts had bipartisan support as he noted it was a “difficult decision” to end it.
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Planning is spending 20 billion dollars in 8 years, or $2.5 billion per year for green grid upgrades. The temporary fuel consumption tax cut, which costs the government $6 billion a year (half of the $12 billion raised annually), has saved Australians $0.22 per liter fuel ($0.81/gallon).
So with these numbers, if the government were to cancel the green grid upgrade, the savings could fund a permanent $2.5 billion a year in fuel tax cuts, which would help people. Australia saved $0.22 ÷ $6 billion x $2.5 billion = $0.09/litre, or $0.33/gallon.
$0.09/liter or $0.33/gallon may not seem like much to some people, but that cost pops up in a lot of places – the cost of delivering food to the supermarket, the shipping cost is quite things. If people refuel their cars once per week with 50L of fuel, that big green allowance is the extra $4.50 they pay for their gas.
$4.50 per week that’s the cost of a cheap family meal cooked at home (lentils, some chicken, a portion of frozen vegetables, a block of braised meat and garlic), 2/3 the cost of a subsidized prescription or more than 3 months, a significant portion of the skyrocketing energy bill costs that low-income families are struggling to pay.
Perhaps worst of all, the fuel tax is helping to push up mortgage rates. Fuel costs are a major source of inflation. The Reserve Bank of Australia is raising mortgage rates to try to contain rising inflation, which has largely been caused by soaring energy costs. The extra fuel tax dollars that Albanese is planning to impose will add upward pressure on inflation and mortgage rates. Inflationary pressures and consequent peaks in mortgage rates could make the difference to whether struggling young families manage to hang on to their new homes for a while. economic recession is coming or not.
All of us Australians are paying more for pretty much everything, because of our green left government’s renewable energy fantasies. Sooner or later, when the utter failure of our government’s Net Zero plans becomes apparent to everyone, our politicians will have to answer for the higher costs and difficulties. which they have recklessly imposed on the voters.
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