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- The Morrison Government set to ease pressure at the fuel pump by slashing Australia’s petrol tax in its final Budget before the next Federal election
- While the Government is yet to confirm by how much it plans to reduce the fuel excise, analysts expect a cut of between 10 and 20 cents per litre for six months
- The Government also announces a record $17.9 billion to be invested into Australian infrastructure as the nation begins the journey back towards debt reduction
- Prime Minister Scott Morrison says funding for rail and road projects is a key part of the coalition’s plan to keep the Australian economy strong
- With the election only weeks away, analysts say it is unlikely the Government will craft money-saving policies that might raise costs for Australian households in tomorrow night’s Budget
The Federal Government is set to ease pressure at the fuel pump by slashing Australia’s petrol tax in its final Budget before the next Federal election.
Prime Minister Scott Morrison and Treasurer Josh Frydenberg have also announced a record $17.9 billion to be invested in Australian infrastructure as the nation begins the journey back towards debt reduction following the massive spending over the past two years to keep the economy afloat amid the COVID-19 pandemic.
While the Government has yet to confirm by how much it plans to reduce the fuel excise, analysts expect a cut of between 10 and 20 cents per litre for six months.
The coalition hopes the fuel excise cut will ease rising costs of living for Australians as supply chain disruptions and Russia’s invasion of Ukraine send oil prices soaring.
The move follows in New Zealand’s footsteps, with Prime Minister Jacinda Ardern announcing earlier this month a reduction of the country’s fuel excise by 25 cents per litre for three months. The cost of public transport in NZ will be halved for the same amount of time.
Meanwhile, the record infrastructure injection will see Australia’s 10-year infrastructure investment pipeline increase to more than $120 billion.
A $3.1 billion freight terminal package in Victoria, a $1.6 billion rail extension in Queensland, a $2.26 billion road project in South Australia and a string of other road, rail and safety upgrades across the country make up the new infrastructure investment.
Mr Morrison said funding for rail and road projects was a key part of the Government’s plan to keep the Australian economy strong.
“By investing in these projects we are delivering the infrastructure that the Australian economy needs to grow, to get Australians home sooner and safer, and generate thousands of jobs and new opportunities for small businesses right across the country,” he said.
“Australia’s future success relies on a strong economy. Our strong economic recovery is being driven by our record funding for major road projects right across the country.”
Mr Frydenberg said the infrastructure investment was expected to create about 40,000 extra jobs in Australia, even with unemployment already at a 48-year low.
High spending to make life easier for everyday Australians has been largely expected out of tomorrow night’s Budget. Just last week, Deloitte Access Economics warned the looming election posed a risk to Australia’s medium-term budget.
With both major parties fighting for votes in the lead-up to the upcoming election, it was unlikely the coalition would craft money-saving policies that might raise costs for Australian households.
Deloitte said the Government needed to save a little over $40 billion a year by 2026 to shrink debt ratios to be in the order of two per cent of national income.
The details of Tuesday’s Budget will shed more light on whether or not this has been prioritised by the Government.
