Jim Chalmers (Rankin, Australian Labor Party, Treasurer) | Hansard source

I move:

That this bill be now read a second time.

Today the Albanese Labor government is introducing the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026. This bill will extend fuel excise relief for another month to take some of the sting out of petrol prices and help Australians with the cost of living. It does so in a considered and calibrated way, acknowledging that support is still needed while tapering that support over time as we return to more normal settings. We welcome last week's agreement between the United States and Iran, but we desperately need that agreement to stick. We need the Strait of Hormuz to be opened and to stay open. We cannot afford another false dawn or another false start.

From an economic point of view, the end of the war in the Middle East cannot come soon enough. But, even after the signing of that deal, even after the proper opening of the Strait of Hormuz—we'll still be paying a hefty price for these hostilities long after they end. Despite the welcome and substantial drop in fuel prices, we know that people are still under pressure. That's why we're taking action to provide a bit more help to Australian motorists and small businesses. The bill extends fuel excise relief for another month, making petrol and diesel 16c per litre cheaper compared with normal prices, saving Australians around $11 per tank. It follows our three-month cut to the fuel excise of 32c per litre that we announced in March.

This additional support will commence on 1 July and run to 2 August in line with the scheduled fuel excise indexation date. Following discussions at National Cabinet, the states and territories have also indicated that they are willing to contribute to this discount. I thank the Prime Minister and the state and territory leaders for the outcome of those discussions today with the Minister for Climate Change and Energy. In addition to this bill, we are also reducing the heavy vehicle road user charge by 16c per litre, which will save truckies $64 on a 400-litre tank of fuel. Here I pay tribute to the Minister for Infrastructure, Transport, Regional Development and Local Government for her work.

This bill to extend fuel excise relief is both responsible and responsive. It's responsive to changing global circumstances and the pressures that people are under. Since the war in the Middle East broke out almost four months ago, we have seen higher fuel prices around the world. We welcome that prices have moderated significantly from these peaks in Australia, providing our motorists some much needed relief. Since the end of March, petrol prices in most capital cities have been around 90c a litre lower and diesel prices in most capital cities have been more than a dollar per litre lower since the end of March. Since the conflict started at the end of February, petrol prices are lower in almost all capital cities and diesel prices are on average around 20c per litre higher.

This bill recognises that, although fuel prices have moderated, people are still under cost-of-living pressure. Australians didn't choose this war, but they continue to face the costs and consequences of it. That's why a more modest but still meaningful discount is the appropriate way to continue this support for a bit longer. This bill delivers that cost-of-living relief in a responsible way. It is temporary, and it is tapered. We know that economic and fuel market recovery will take time, and this extra month will help Australian motorists and businesses as this support tapers off and we return to those normal excise settings. It's also a responsible way to help manage demand at service stations across the country towards the end of this month.

This responsible cost-of-living relief is in addition to all of the other actions that we are taking on fuel—and, again, I pay tribute to colleagues for these efforts—creating the $7½ billion Fuel and Fertiliser Security Facility for additional supply and storage; securing over 800 million litres of diesel and 150 million litres of jet fuel by Export Finance Australia; providing $3.2 billion to establish the Australian fuel security reserve and bring our total stocks of diesel and jet fuel to 50 days; legislating new ACCC powers to enable faster, coordinated industry responses during exceptional circumstances; supplying a $1 billion economic resilience program for loans to eligible businesses, including heavy vehicle operators; releasing $1.1 billion in support for domestic production of low-carbon liquid fuels; and providing over $80 million to roll out more kerbside and regional EV chargers and electrify Australia Post's delivery fleet.

All of this helps to take the pressure off for the farmers who grow our food, the truckies who get goods to where they're needed and the businesses that sell our everyday essentials. It also builds on all the other ways that we're providing responsible cost-of-living relief, including income tax cuts for every worker, making medicines cheaper, helping more Australians into a home and backing higher wages for workers. From 1 July, we'll have more temporary cost-of-living help in this extension to the fuel tax cut but also more permanent cost-of-living help in another round of tax cuts for every taxpayer and more increases to the minimum wage.

This comes after a budget that is all about making it easier for people to buy their own home. It's got more income tax cuts and is better aligning the treatment of income from labour and assets. All of these measures are about helping Australians with the cost of living and responding to the very real pressures that they are facing while we shore up our critical supply chains and navigate all of this global uncertainty. This extra fuel excise relief is just the latest but still a very important way that we are continuing to help Australian families and small businesses. That's why we commend this bill to the House.

Debate adjourned.

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