Rebekha Sharkie Mayo, Centre Alliance
4:45 pm
I move:
That this House:
(1) recognises that:
(a) Australians continue to face significant cost of living pressures, with high fuel prices increasing expenses for households, businesses, transport operators and community groups;
(b) people living in regional, rural and remote communities are disproportionately affected by high fuel prices because of limited or non-existent public transport options and long distances to travel to access work, education, health care and essential services; and
(c) diesel prices remain particularly high, increasing freight and transport costs that flow through to the price of goods and services, placing additional pressure on family budgets and regional economies;
(2) acknowledges that:
(a) the current fuel excise on petrol and diesel is 53.7 cents per litre;
(b) national average fuel prices remain elevated, with diesel prices substantially higher than unleaded petrol prices;
(c) higher fuel prices increase goods and services tax (GST) revenue collected by the Commonwealth, as GST is applied to the final retail price of fuel, including the fuel excise component;
(d) previous temporary reductions in fuel excise have demonstrated that the Commonwealth has the capacity to provide immediate relief to motorists and businesses during periods of exceptional fuel price increases; and
(e) while fuel tax credits provide relief for eligible off-road fuel use, many regional households, small businesses, transport operators and community organisations receive no equivalent support for their on-road fuel costs; and
(3) calls on the Government to:
(a) reduce the fuel excise on petrol and diesel by 50 per cent for a minimum period of three months;
(b) ensure the full benefit of the excise reduction is passed on to consumers;
(c) monitor the impacts of the reduction on households, small business and regional communities; and
(d) continue pursuing long-term measures to improve Australia's fuel security and resilience.
Sally Sitou Reid, Australian Labor Party
I second the motion and reserve my right to speak.
Rebekha Sharkie Mayo, Centre Alliance
Australians are under enormous cost-of-living pressure. People are being forced to choose between spending money on their health and their mortgage or rent payments, between their power bill and putting food on the table. Every time they fill up their car, it is costing a small fortune. In my electorate, I just checked the price. As of today, it's $2.89 a litre for diesel. Out of that, 53.7 cents goes direct to the government in excise and then 26 cents for GST. It could be argued that the government's really having a bit of a windfall from the high price of fuel. Families are paying more, small businesses are paying more and transport operators are paying more.
In regional Australia, the impact is huge. We can't just get on a train or a bus. They can't fix everything for us, and when we think of fuel prices it affects every single thing we touch, particularly food. High diesel prices mean higher freight costs, and higher freight costs directly impact the cost of groceries. When we think about the journey of food from the farm gate to our kitchen tables, it's grown on farms. From the very beginning of preparation of soil, it requires diesel. It's transported on trucks that require diesel. It's processed, stored and delivered to supermarkets—again, more diesel. I'm told by experts that the cost of food in Australia is about to rise significantly because of the cost of fuel.
My motion has a very clear ask for government. The government did a temporary halving of the fuel excise for a period when the Iran war first began. Petrol prices have not reduced at all. Diesel prices have not reduced, but the relief that the government provided from the excise costs went away. I would urge the government to bring it back because we are dealing with an inflationary challenge in Australia. We are dealing with massive costs of every single aspect of life. Life is hard. Life is so hard in regional Australia at the moment. People are going: 'Can I afford to drive to church? Can I afford to drive the kids to school?' Everything is so, so difficult for families.
We just don't have the luxury of a bus. We don't have the luxury of a train. We rely on our cars. We have to fill them up to use them. I would urge the government: if you genuinely care about the needs of regional Australia, if you want to see the relief happen across the board in Australia—it's not just us, but I think we feel it most keenly, and, Deputy Speaker, I know that you represent a regional community and you too have these challenges—then we have to reduce the fuel excise in this nation. We absolutely have to. At the moment, I believe regional Australia is being left with the full burden of the high fuel prices, and this is a very practical and simple way we can help. Halving the fuel excise would provide immediate relief at the bowser and help ease the pressure flowing through the economy.
This is something we could do that could very much address inflation, and that, in turn, would hopefully provide some easing. We know that the Commonwealth Bank—sorry, the Reserve Bank—is meeting again just next week, I think. It's always around Melbourne Cup Day. It's that day when everyone with a mortgage holds their breath. I feel that we just are not doing enough in this place to make life easier for Australians. Australians tell me all the time that this is the hardest they have ever known life to be in their adult life. We can do much more. This is a very simple, measured way to do that.
Claire Clutterham Sturt, Australian Labor Party
4:50 pm
I rise to speak to this important motion brought by the member for Mayo. Australia's fuel security is at the top of this government's agenda, and that is why there is more fuel in this country now than there was prior to the commencement of the conflict in Iran. Following the commencement of the war in February this year, this government acted immediately to arm Australians against the worst possible consequences, which are fuel rationing or no fuel. Our defence forces, emergency services, farmers and other stakeholders in the food security supply chain need to have access to the quantity of fuel and diesel that they need. This is a no-brainer.
As early as March 2026, some commentators were saying that fuel rationing was inevitable and that the government had not done enough. Now the war continues, and no-one is able to say when it might end, how it might change or how we might need to adapt, but one guarantee that can be given is that this government's work in building relationships with our regional partners has meant our fuel supply is secure. The government was able to draw on these meaningful partnerships to secure additional fuel and fertiliser supplies for the Australian people in the midst of one of the most serious energy crises the world has ever seen. We would not have been at the front of the queue without having first done the work to build those relationships, which included exploring and crystallising what is mutually beneficial from a gain-of-trade perspective. The time to build relationships is not when a crisis arises; the right time is all times, which is the approach this government has taken and which has been successful.
The government's work with the EFA, legally constituted as the Export Finance and Insurance Corporation and Australia's export credit agency, has also played a critical role in fuel security. For example, in May 2026, approximately 100 million litres of additional diesel was secured for Australians, with shipments coming from Brunei and South Korea taking the form of the first of the expected shipments of fuel secured under the government's strategic reserve powers, which saw Export Finance Australia partnering with Viva Energy to facilitate this purchase. Export Finance Australia has also reached commercial terms with Ampol and Park Fuels, supporting them to purchase additional fuel needed to address regional shortages and critical supply gaps and helping to acquire additional supply valuable for Australia's fuel security where it would be cost prohibitive for private suppliers to source on commercial terms without government support.
What was also lost in the noise surrounding the tax changes in the federal budget was the sharp focus on fuel security that was outlined. The historic $15 billion fuel security package included $7½ billion for the Fuel and Fertiliser Security Facility to help suppliers secure additional fuel shipments for Australia, $3.2 billion for the government controlled Australian Fuel Security Reserve and $2.9 billion in temporary relief from petrol prices. The fuel excise reduction took the pressure off consumers when the war commenced, but it was never meant to be permanent, with other cost-of-living measures being implemented to take the pressure off families.
Fuel price monitoring also plays an important cost-of-living role, with almost $70 million extra provided in the budget to strengthen the ACCC's enforcement activities, which include the power to issue penalties of up to $100 million for serious misconduct and cartel behaviour—up from $50 million. The ACCC has announced an investigation into the major fuel companies for alleged market misconduct and is now investigating claims of misleading fuel surcharges in regional areas. This is important because, in a war with no end in sight, effective deterrence measures and effective consequences must be in place to limit the number of entities seeking to take advantage of the Australian consumer, our emergency services and our farmers.
I have a quick note on the suggestion of a windfall because of high prices. High prices are not a windfall for the government. The fuel excise is a flat tax calculated by multiplying the current excise duty rate for a specific fuel type against the total volume of fuel in litres. Now, as we move towards electric vehicles, which this government wholly supports, the amount of the excise is set to fall even further. The government's focus on fuel security is part of our widespread initiative to strengthen energy security and ensure not only that working Australians and businesses have access to fuel but that critical industries can continue to operate and do the important work that they do to serve our country.
Dai Le Fowler, Independent
4:55 pm
Since my election in 2022, I have been calling for a reduction in fuel excise as a practical cost-of-living measure. The government did listen and did reduce that excise in May this year, but that lasted for three months and, as we know, it ended in August. But I'll continue to press the government on this issue. I stand here today to second the member for Mayo's motion, because Australians still need ongoing relief. My constituents rely on their cars to get to and from work, take their children to school, get their groceries or take their loved ones to see a doctor. This motion rightly recognises the pressures on regional and rural Australia, and I acknowledge and empathise with the challenges being felt across these communities. These challenges and fuel dependence are shared in outer suburban communities like Fowler.
Fuel prices show no signs of falling. The cost of Middle East crude is currently US$118 a barrel, which is about A$168. No matter how the conflicts in that turbulent region unfold, energy experts aren't optimistic there'll be relief anytime soon. Today, local bowser prices have E10 at around 236c a litre, premium unleaded 98 at 260.9c and premium diesel at around 290.9c. That means putting about 50 litres of E10 in a car costs more than $118. I have done a vox pop in my community. Those who are driving on diesel have seen their diesel double in price, and for other cars, fuel has gone up by about 30 per cent.
Many households in Fowler need more than two cars to manage different shifts, school drop-offs and family responsibilities. There is an increasing use of electric vehicles, as we've all heard, but the majority of people in Fowler and, I have no doubt, in regional areas still rely very much on diesel and on leaded and unleaded petrol. When fuel prices rise, people still must get to work, get up in the morning, drive their trucks, take their kids to school and take their elderly parents to medical appointments. Fuel isn't optional; it's essential. When rent, electricity, insurance and groceries all have to be paid, there is only so much a family can cut back. Where are families supposed to find that extra money.
Our small businesses face the same squeeze. A trader needs to get to the next job. A delivery driver needs to keep moving. In Fowler, many businesses rack up huge bills as their vehicles crisscross Sydney on a daily basis. Last week, my office held our inaugural Fowler Small Business Forum. Businesses told us loud and clear that they are hurting. From high fuel prices and credit card charges to changes on trusts—not to mention the cost of operations and the running costs of doing business in this day and age—costs are piling up. These high running costs, of course, will eventually flow through to consumers in higher prices for the goods and services we buy. This is why fuel excise relief matters.
This motion calls for the government to halve the excise on petrol and diesel for at least six months and ensure the full benefit reaches consumers. Families must see that saving at the bowser. It must not be swallowed up by high margins along the way. Many families and small businesses will need that relief all the more as we move into what is likely to be a scorching summer. They'll need that relief as they consume more fuel running vehicles and air conditioning as they contemplate or decide against holiday travel, as they face crippling energy bills to keep their homes cool—for those who can afford to turn their air conditioning on. We are aware that some people just can't afford to.
We also need a long-term plan to strengthen Australia's fuel security, but that work should happen alongside immediate relief, not instead of it. People in Fowler are working very hard, paying their taxes and doing their best to support their families. They deserve a government that understands what another increase at the bowser means for their weekly budget and takes practical action to help. I thank the member for Mayo for bringing this motion forward, and I commend it to the House.
Libby Coker Corangamite, Australian Labor Party
5:00 pm
For families, workers, small businesses and community organisations across the Bellarine, Surf Coast and Geelong, fuel is a necessity. In an electorate like Corangamite, people depend on their cars to get to work, take their kids to school and access essential services. When fuel prices rise, the effects can reach well beyond the bowser, adding to freight costs and flowing through to the price of everyday goods and services.
I know people who are feeling the pressure. I hear it from locals right across my electorate, and our government is taking action to address it. Since the conflict in the Strait of Hormuz began disrupting global fuel markets, the Albanese government has worked to protect Australians from the worst of the crisis. Our recent budget delivered a historic $15 billion fuel security package. That includes $7.5 billion through the Fuel and Fertiliser Security Facility to help suppliers secure additional fuel shipments, $3.2 billion for a government controlled Australian fuel security reserve and $2.9 billion in temporary petrol price relief. These investments are strengthening our fuel security, and there is now much more fuel on shore in Australia than when this conflict began.
We are also working to ensure motorists pay a fair price at the bowser. The Treasurer has directed the ACCC to increase its monitoring of fuel prices, and new legislation has doubled the maximum penalty for serious breaches of competition and consumer laws to $100 million. We've committed a further $67.7 million to strengthen the ACCC's enforcement work. The regulator is monitoring fuel pricing and investigating alleged misconduct. Our message is clear: Australian consumers must be protected, and businesses that break the law must face the consequences. We are also improving access to fuel stockpiles, increasing transparency around fuel supplies and requiring shortages of critical products, including diesel, exhaust fluid and technical-grade urea to be reported.
We know fuel prices remain a concern, particularly as the four-month fuel excise reduction comes to an end. That reduction provides temporary relief when prices surged following the conflict in the Middle East. It was designed as a temporary measure, and our broader cost-of-living support continues. This financial year, the Albanese government is delivering $17 billion in cost-of-living relief. That includes $3 billion in fuel excise relief, $2.6 billion in energy bill relief, more than $2 billion in tax cuts and more than $2 billion in increased payments, including support for pensioners. We are also funding pay rises for early childhood educators and aged-care workers, and we're investing a further $5 billion in health. That means supporting services, such as the Medicare urgent care clinic in Torquay and helping Australians access the medicines they need through $25 PBS prescriptions. Our government is also backing higher wages, taking action on supermarket price gouging and working towards a fairer housing market. For eligible small businesses across Corangamite, making the $20,000 instant asset write-off permanent from next year will provide greater certainty when planning investments and purchasing equipment. That's practical support for local businesses, their employees and the communities they serve.
Global fuel markets remain uncertain, and international events continue to affect prices around the world. Our focus is on the things we can do: securing Australia's fuel supplies, protecting consumers from illegal conduct and delivering meaningful cost-of-living relief. As the member for Corangamite, I will keep listening to local families, workers and businesses and keep advocating for the support our community needs. The Albanese government is taking action to strengthen fuel security and ease cost-of-living pressures, and we will continue that work.
Meryl Swanson Paterson, Australian Labor Party
The time allocated for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.