The Federal Government is moving ahead with its plan to have the current fuel excise indexation changed by way of tariff proposals to be validated by Parliament within 12 months.
These tariff proposals were tabled in the House of Representatives this week and will take effect from 10 November 2014.
Federal Member for Wright Scott Buchholz has welcomed the Governments initiative on this issue and wants to reassure residents that the price impact of this measure on households will be minimal.
“For a typical household, which consumes 50 litres of fuel per week the estimated price impact of this fuel excise indexation will be about 40 cents per week by the end of 2014-15”,
“While the impact on individual households will be modest, this measure will provide a predictable and growing source of revenue, to help the Government roll out job creating investment projects in local roads” said Mr Buchholz.
From 10 November 2014, the rate of fuel duty will increase from 38.143 cents per litre to 38.6 cents per litre, the rate which would have applied if relevant legislation had been passed by Parliament prior to 1 August 2014.
Indexation of fuel duty will then return to biannual CPI indexation from 1 February 2015.
Mr Buchholz also wishes to reiterate that this will not have detrimental effects for businesses or the transport industry because the Government is doing everything it can to make sure that doesn’t happen.
“To ensure individuals and businesses who are eligible to claim Fuel Tax Credits and recipients of Cleaner Fuels Grants are not negatively impacted, the Government moved amendments to relevant legislation this week”
“The Government’s intention is to ensure that there is no financial impact arising from this implementation by way of tariff proposals over the next 12 months for Fuel Tax Credit recipients, as well as Cleaner Fuels Grant and Ethanol Production Grant recipients” ” said Mr Buchholz.