Libby Coker (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Albanese Labor government responding to the pressures Australians are facing as a consequence of the war in the Middle East?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

A big thankyou to the member for Corangamite, not just for the question but also for the great job she does representing the people of the Surf Coast and the Bellarine in Victoria, a beautiful part of Australia. The war in the Middle East is doing a great deal of damage to the global economy. Australians are paying a hefty price for that, at the petrol bowser and beyond, when it comes to the upward pressure on prices.

What we've announced today are additional steps to try and ease some of the pressures that Australians are feeling as a consequence of that war in the Middle East. We have announced that we'll halve the fuel excise for three months from April and cut the heavy vehicle road user charge to zero. That's all about helping with the cost of living in a timely way, in a temporary way and in a responsible way. It will reduce the excise on petrol and diesel by 26.3c a litre.

People are under cost-of-living pressure. We acknowledge that. But, more than acknowledging that, we're acting on it today. We know that that pressure in this instance is coming from the war in the Middle East. We can't end that war. Obviously, from an economic point of view, the end of the war can't come soon enough. But, in the interim, we're taking a series of responsible, decisive steps to help Australians through a particularly difficult period.

What we're announcing today will reduce the cost of a 65-litre tank by around $19. When it comes to the heavy vehicle road user charge, that will save drivers about $130 on a 400-litre tank and will help take some more of the pressure off the supply chain for food and other essentials. This government will always do what it responsibly can to help people with the cost of living and to recognise the pressures that they're under.

This is a really important part of our plan to respond to the impact of the war in the Middle East, but it's not the only part of our plan. I commend my ministerial colleagues for the work that is going into boosting supply and making sure the distribution networks are as strong as they can be and making sure that our domestic refineries are encouraged to create more fuel here. The work that we're doing on ACCC and monitoring and all of the work that's happening when it comes to engaging with our international partners is a really important part of our plan, and so is particularly the leadership that the Prime Minister showed today in bringing the state and territory leaders together to agree on the plan for fuel security, which was released in the last hour or two. I thank the state and territory premiers as well for the indications that they have given on GST relief. We will get through this, but we all need to work together and do our bit. The announcements we've made today are all about that.