Share and Follow
The Australian Chambers of Commerce and Industry (ACCI) has called on the government to slash the current tax of 32.4 cents per litre, aiming to ease the financial burden on transport businesses and individual operators.
According to the ACCI, although the tax generates a substantial $3 billion annually, reducing it could prevent “even worse outcomes” amid Australia’s ongoing petrol challenges.
In a press conference today, ACCI representative Andrew McKellar emphasized the potential benefits, stating, “This will assist in controlling costs along the supply chain.”
He added that such a move would help cushion the impact on food and grocery prices, thereby mitigating any inflationary pressures currently being experienced.
McKellar contrasted this suggestion with the fuel excise reduction proposed by the federal opposition, noting that cutting the heavy vehicle charge would be a more focused approach. This strategy, he argued, would deliver substantial benefits without exacerbating inflation.
“It’s something that doesn’t send an artificial signal, such as what an immediate reduction in the fuel excise would do,” he said.
“It doesn’t encourage artificially higher demand.
“We want to minimise the adverse economic impact.”
It comes as the ACCI urged the government to implement a four-point plan to address the fuel crisis, which has pushed up prices and left pumps to run dry across Australia.
This includes securing the supply of petrol by working with allies in the Gulf region, and working with distributors to get fuel out to all Australians quicker.
They have also called on the government to manage demand, not ruling out measures such as fuel rationing, as well as ensuring businesses can survive the price surges; the reduction to the heavy vehicle charge is part of this.
“Efforts must be stepped up to ensure Australian businesses come through this crisis in the best shape possible,” McKellar said.
He clarified Australia was still not at the point of needing to ration fuel, but highlighted a scenario that might make it possible.
“If we are seeing material shortages, difficulty in securing those international supplies,” he said.
“It could be several months before we get to that point, if that starts to happen.”
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.