Fuel Tax Credit scheme retained

The Rudd Government has retained the fuel tax credit scheme in the Budget, despite lobbying from the green movement to abolish it.

The decision is an important win for the trucking industry and Australian consumers.

The tax on diesel fuel is 38.143 cents per litre, but the fuel tax credit scheme enables trucking operators to claim a rebate of 18.51 cents per litre.

The rest of the fuel tax is known as the road user charge.

The scheme has a vital role in keeping costs down for the trucking industry.

The industry carries 75 per cent of Australia’s freight, so the effects of the scheme flow through to every part of the economy, including the grocery prices paid by Australian consumers.

In the run up to the Budget, the Government came under intense pressure from the green movement to abolish fuel tax credits.

The Australian Trucking Association argued just as strenuously that it should be retained.

The rebate under the scheme is scheduled to fall in 2009, with the road user charge increasing from 19.633 cents per litre to 21 cents per litre as a result of this year’s heavy vehicle charges determination.

The legislative instrument that would put the increase into effect is currently before the Senate.

  • 2008-09 Budget Retains Fuel Tax Credits Scheme
  • Building Australia Fund to Receive $20 Billion From Budget Surpluses
  • $3 Billion for Road Projects, Including 40 Election Promises
  • Budget Factbox: Road Funding Promises Brought Forward to 2008-09
  • Urban Congestion Studies Announced
  • Funding Confirmed for the Heavy Vehicle Safety and Productivity Plan

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