The Federal Government and states and territories have agreed to forgo increased GST revenue on fuel transactions, delivering an additional $400 million in relief for motorists and extending cost-of-living support.
The agreement will be implemented through a further 10.9 per cent reduction in fuel excise over three months, equating to an additional 5.7 cents per litre cut from 1 April to 30 June. Combined with the previously legislated halving of fuel excise, the total reduction will reach 32 cents per litre for petrol and diesel.
According to the Government, the combined measures will reduce the cost of filling a standard 65-litre tank by nearly $23. Early signs of the reduction are already appearing in fuel prices, with further decreases expected to flow through over the coming weeks.
The decision follows commitments made at National Cabinet, with states and territories agreeing to return additional GST revenues generated by elevated fuel prices. The Government notes that adjusting fuel excise provides a faster and more practical mechanism than altering GST settings.
The relief comes amid continued volatility in global energy markets, driven in part by ongoing conflict in the Middle East, which has contributed to rising oil and petrol prices.
In addition to excise cuts, the Government has outlined a series of complementary measures aimed at improving fuel affordability and security. These include releasing a portion of the national fuel stockholding reserves, temporarily easing fuel standards to increase supply, and supporting domestic refining capacity.
Further regulatory action includes strengthening enforcement powers for the ACCC, increasing penalties for misconduct, and enhancing fuel price monitoring, particularly in regional areas.
The measures form part of a broader effort to manage cost-of-living pressures while maintaining supply chain resilience and fuel security.
