House debates
Tuesday, 31 March 2026
Bills
Treasury Laws Amendment (Fuel Excise Relief) Bill 2026; Second Reading
12:28 pm
Madonna Jarrett (Brisbane, Australian Labor Party) Share this | Hansard source
(): We do live in uncertain times, with the war going on overseas. While that's happening, though, we can't forget that this government continues to focus on looking after Australians here at home as well. Our No. 1 priority remains supporting our communities with cost-of-living relief. This isn't something new; this started back in 2022, when the Albanese Labor government was first elected, and it has continued full steam since then. From tax cuts to $25 scripts, seeing a GP for free and energy bill relief, this government has implemented a lot of changes to help ease the cost of living—we know how hard it's been.
However, as the war rages overseas, we are seeing prices at the petrol pump go up, and there's no doubt that this adds to the anxiety that people are already feeling. If we listen to those on the other side, though, you'd swear that this government was oblivious to that and was doing nothing. But nothing can be further from the truth. Again, we are stepping in to help people with this unexpected hip-pocket hit.
Yesterday, the Prime Minister announced that we'd halve the fuel excise, and this bill will enable this to happen. Following a meeting of the National Cabinet convened by the Prime Minister, the Australian government will now halve the fuel excise on petrol and diesel for three months with this bill, should it pass. The halving of the fuel excise will reduce the cost of fuel by approximately 26c a litre. If you look at what that means for everyday mums and dads with a 65-litre tank in the car, that'll probably cut their fuel costs by about $19. If you're an operator, it'll probably be around $130, assuming you've got a 400-litre tank. Again, let's not forget that the spike in fuel prices as a result of the war in the Middle East is hurting Australians, and this bill will help provide some relief. The halving of the fuel excise will commence from 1 April and run until 30 June.
This bill also provides the government with greater flexibility to give additional relief to the fuel excise and excise-equivalent customs duty rates. When this bill is passed, the Treasurer will be able to determine excise or equivalent customs duty rates to be reduced by more than 50 per cent during the rate reduction period. The bill also waives the heavy vehicle road user charge for three months to support truck drivers in carrying out their essential work. In addition, the government will postpone the next planned increase by approximately six months.
Working through the National Cabinet, the Prime Minister is doing what he can with the states, and our government is supporting what we can to support supply, security and cost-relief measures. While supply is secure for the time being, we are seeing spikes in demand, resulting in pockets of fuel shortages. The energy minister reports on where these shortages are daily. No-one knows when the war will end, so, as the Prime Minister said yesterday, Australians are encouraged to conserve fuel. Maybe carpool, maybe get back on the pushbike, use public transport wherever possible.
I welcome existing moves to cut the cost of public transport. It's a great way to move people around quickly. In my home state of Queensland, the great sunshine state, the former Labor government rolled out 50c fares. That has saved commuters between $20 and $70 per week on average. Not only is it cost saving, but, because it's been rolling on now for quite some time, it is changing consumer behaviour and it is helping people with cost-of-living pressures. These changes continue to today. Recently, we saw Victoria and Tasmania make public transport free for the next month or couple of months, depending on the state.
The Australian Competition and Consumer Commission, ACCC, will continue to monitor companies for price gouging to help ensure that the low excise rate is fully passed on to consumers at the bowser. We've seen periods in the past where this hasn't been the case, so hopefully the ACCC will be able to step in when people do the wrong thing.
While Australia's fuel supply outlook remains secure in the near term because of the actions of the Albanese Labor government, the longer this war goes on, the more uncertain everything can be. That's why the government continues to act and is acting now, despite what we hear in this House, to prepare and shield Australians. Since the conflict commenced a few weeks ago, the Albanese government has taken some swift action.
We've passed new laws to double penalties for petrol companies that are price gouging, and I'll talk more on that a bit later. We've appointed a national Fuel Supply Taskforce Coordinator; released 20 per cent of Australia's petrol and diesel fuel reserves, targeted at regional areas; changed fuel standards to get more fuel flowing; and changed diesel standards so Australia's refineries can supply more diesel. We've tasked the ACCC to ramp up price gouging monitoring and issue on-the-spot fines. We've engaged with international partners to keep supply flowing, including securing a supply agreement with Singapore. We've introduced laws to make sure companies pay truckies fairly in this period of fuel price spikes. We've introduced legislation to underwrite the purchase of fuel imports by the private sector. Yesterday, the Prime Minister, alongside national leaders, agreed and released a National Fuel Security Plan.
The Prime Minister, the Minister for Foreign Affairs and Minister Bowen are continuing their engagement with international partners to maintain the steady supply of fuel and diesel shipments to Australia. We will keep Australians informed of these discussions and the progress as further developments arise. The Prime Minister also announced yesterday that the government will be announcing more measures to prepare the nation for supply chain challenges over the coming days and weeks.
As this war rages overseas, it really is upending supply chains, including for fuel, and it is impacting our country. At the end of the day, as we listen to those on the other side accuse the government of sitting on their hands, really nothing could be further from the truth. But I guess the rationale for those opposite is that, if you keep saying it often enough, you might start believing it yourself and to hope that other people might start to believe it too.
As I mentioned earlier, that's not to say there aren't parts of Australia that are facing significant demands and then accompanying fuel shortages, especially with the supply of diesel. But I want to remind the people of Australia and my constituents in Brisbane that the now Leader of the Opposition hid an energy price increase from Australians, deliberately deceiving the Australian public. On this side of the House, we've been transparent about shortages. We face up to the challenges and we act.
Today, I also want to talk about the rise in fuel prices which I've seen in my electorate and which is not isolated. In times of conflict and uncertainty, consumer behaviour changes. It really depends on what people think might happen. One of the most obvious outcomes is hoarding when there's a fear of supply shortages. That might be a real fear or a perceived fear. Remember that during COVID we had the stockpiling of toilet paper. Not everyone did this. Many thought about their neighbours and others and only bought what they needed. We are seeing something similar happening here, with stories of people stockpiling.
Supplier behaviour also changes. Price changes can be initiated in the supermarket or at the pump. Many business owners are honest and absolutely do the right thing. But there is always someone who will look at how they can make a quick buck. Who loses out when that happens? Every single one of us. It's everyone who's trying to buy critical goods for their everyday lives, every parent who's trying to drop their kids off at school or take a sick relative to the hospital and every business that's trying to keep their doors open. Unfortunately, with fuel supply front and centre, it opens the door for grifters in the fuel industry to take advantage. The conflict overseas shouldn't be an excuse to profit off Australians. I say to those in the industry who are thinking of doing the wrong thing: Don't take advantage. Don't treat the people of Australia and my community like mugs. Just do the right thing. Everybody will benefit in the long term. Frankly, price gouging is just so un-Australian.
I also say to the people of Brisbane: pay attention to the prices and know that the government's on your side, that we won't tolerate you being taken advantage of. That's why we now have higher penalties for those companies that do the wrong thing to a maximum of $100 million per offence. This comes on top of the steps the government has already taken to increase penalties up to $50 million, which is five times higher than what they were. We also gave the ACCC more tools, such as extending petrol gouging monitoring powers and the ability to issue spot fines.
I want to go to the trucking industry, which we know is feeling the pinch of the fuel shortages across Australia. The reason I go to this is that we know that, without trucks, Australia stops. I say to the trucking industry, as I hope you've heard from others in this House on this side of the chamber, that this government is here to support you. We know that our transport industry can only operate if it has access to reliable fuel sources. That's why we're taking practical steps to support the industry. We passed legislation in the House to amend the Fair Work Act to allow truckies and road transport businesses to make an emergency application for a contract chain order to deal with the current spike in fuel prices. A contract chain order is a little convoluted, but it simply means they can negotiate a fair deal to keep their trucks moving. Currently, there is a minimum of approximately six months for these orders to happen and, with the passing of the legislation, that waiting time will be removed. What this means is that truckies and transport operators won't be left to worry about managing rising costs on their own. It's just so important to support those who move our goods around the country.
But it's not just the truckies that rely on fuel. Think of all those industries and sectors that will be impacted if we can't be moving goods and services and there's insufficient fuel. There's the housing and construction industry. We're trying to build 1.2 million homes over a five-year period. There's also road building, other construction and many local businesses across our communities.
Those opposite have spent weeks talking down fuel availability, at times even fuelling misinformation. They weren't prepared to support Australian truckies getting access to more fuel. You really couldn't make that up, when you think about it. They say that the government sits on its hands, is completely oblivious and is not taking a leadership role. Nothing can be further from the truth. This government has taken strategic, considered and coordinated steps to support our fuel resilience, to maximise supply and to reduce costs to consumers and those who rely on fuel to keep their businesses operating.
We know that there's a lot of anxiety out in our communities associated with the challenges of the war overseas. We know that part of that is due to the cost of fuel, which increases the cost of living. This Labor government hears you. We are acting. It's at times like this that we need to keep Australia moving. That's what this bill does, alongside other measures that this responsible government has taken. I commend the bill to the House.
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