Australia's states and territories have agreed to work with the Albanese Government to forgo increased GST revenue on fuel transactions, introducing additional fuel cost relief measures.
The agreement will provide around US$261 million in relief through an additional 10.9% reduction in fuel excise for three months, equivalent to a further cut of 5.7 cents per litre. Combined with the previously legislated reduction, the total decrease in excise on petrol and diesel will reach 32 cents per litre.
The measures are expected to be reflected in fuel prices over the coming weeks. The combined reduction is estimated to lower the cost of a 65-litre tank by nearly US$15.
The policy is being implemented through excise adjustments rather than changes to GST. The Treasurer has issued a determination to apply the additional excise reduction from 1 April to 30 June.
The agreement follows a commitment by states and territories to return additional GST revenues generated by higher fuel prices.
The measures form part of a broader response to rising fuel costs, which are affecting supply chains and transport. Additional actions include releasing 20% of baseline fuel stockholding obligations for petrol and diesel, temporary amendments to fuel standards to increase supply, and support for domestic refining capacity.
Regulatory measures include increased penalties for misconduct, with maximum penalties raised to US$65 million, and authorisation for fuel suppliers to redistribute supply to regional areas. Fuel price monitoring is also being expanded.
Engagement with international partners is ongoing to support supply chain continuity and fuel availability.
Rising fuel costs are linked to global market conditions and are contributing to increased costs across sectors. The measures are intended to address fuel affordability and supply while broader economic conditions continue to be monitored.
For more information:
The Hon Anthony Albanese MP
www.pm.gov.au
