- See more Daily Mail on Google - save us as a Preferred Source
The Coalition has unveiled a plan to automatically cut fuel taxes whenever global oil prices spike, in direct opposition to the Albanese government's decision not to introduce another fuel excise cut.
Opposition Leader Angus Taylor unveiled the Coalition's 'Fuel Price Shield' on Sunday, claiming it could save motorists up to 27¢ a litre at the bowser and about $15 on the cost of a typical tank.
Under the scheme, fuel excise would be halved whenever the two-week average closing price of Brent crude oil exceeds US$100 a barrel.
uncertain
price → see → 100
He argued Australians need protection from international energy shocks that can rapidly drive up household and business costs.
asserted
that → argue → costs
The policy would also drop the heavy vehicle road user charge to zero temporarily, providing relief for truck operators and, the Coalition claims, ultimately lowering freight costs that flow through to supermarket shelves and consumer prices.
uncertain
that → drop → shelves
'When global events send oil prices through the roof, Australians should know there is a clear automatic safeguard in place to provide temporary and targeted relief,' he said.
asserted
he → send → relief
The excise reduction would stay in place until the eight-week average Brent crude price falls below US$100 a barrel, or until three months have elapsed, unless the government chooses to extend it.
asserted
government → stay → it
The Coalition said its analysis shows the scheme would only have been triggered twice in the past five years, once during the oil price shock in early 2022 and again in March 2026.
asserted
scheme → say → March
Angus Taylor (right, with Nationals Leader Matt Canavan) said the plan could save Australians about $15 on a typical tank of fuel
Treasurer Jim Chalmers moved quickly to attack the proposal on Sunday, calling it an 'uncapped' and 'unfunded' scheme that could cost taxpayers billions of dollars
But Treasurer Jim Chalmers moved quickly to attack the proposal on Sunday, calling it an 'uncapped' and 'unfunded' scheme that could cost taxpayers billions of dollars in lost revenue.
uncertain
that → say → revenue
Speaking on News24 on Sunday morning, Chalmers said the Opposition had failed to explain how it would pay for the policy.
asserted
it → speak → policy
'That's what makes it uncapped and unfunded,' he said.
asserted
he → make → ?
'That's why he can't tell us how much it costs, how he'll pay for it.'
asserted
he → tell → it
Chalmers argued the plan was a response to political pressure on Taylor, not a genuine economic solution.
asserted
plan → argue → Taylor
'I think what we've seen overnight from Angus Taylor is more about polling numbers than petrol prices,' he said.
asserted
he → think → prices
'He is under very serious political pressure and that matters much more to him than the cost of living pressures that people are feeling around the country.
asserted
people → matter → country
However, Chalmers also admitted that Labor is not currently considering another fuel excise cut, despite previous interventions when energy prices surged globally.
asserted
prices → admit → interventions
The Albanese government is not considering a second temporary cut to the fuel excise
The Albanese government temporarily reduced fuel excise during the recent US-Iran conflict, costing about $2.5billion over three months before the measure was wound back.
asserted
measure → consider → months
Chalmers said Labor was now focusing on permanent cost-of-living relief through tax cuts and wage growth.
asserted
Labor → say → cuts
The Coalition estimates the Fuel Price Shield would cost around $950million for every month it operates.
asserted
it → estimate → month
Taylor said the policy would be funded by another Coalition promise, an 80 per cent cut to tobacco excise.
asserted
policy → say → excise
'The cut to tobacco excise will raise $8billion of funding,' he said.
asserted
he → raise → funding
'We worked through that with the Parliamentary Budget Office and that will fully fund the cut to the fuel excise.'
asserted
that → work → excise
Taylor said the plan would be 'anti-inflationary', as it would ease transport costs and help motorists when prices approach $3 per litre.
asserted
prices → say → litre
The Coalition says the ACCC would monitor wholesale and retail prices to ensure consumers benefit.
asserted
consumers → say → prices
AMP chief economist Shane Oliver said the Coalition's proposal would likely prove politically popular but questioned whether it would provide anything more than temporary relief.
asserted
it → say → relief
He described fuel excise cuts as a 'Band-Aid solution' and a 'sugar hit' that reduce prices in the short term without addressing the underlying causes of higher fuel costs.
asserted
that → describe → costs
'The main beneficiaries are often those driving bigger, less fuel-efficient vehicles, who tend to be higher-income earners,' he told the Daily Mail.
asserted
he → drive → Mail
Dr Oliver argued a more targeted approach would be preferable, including relief for truck drivers, farmers and low-income households.
asserted
approach → argue → drivers
While he backed the proposal to abolish the heavy vehicle road user charge during oil price shocks, he said broad fuel tax cuts could undermine market signals that encourage consumers to reduce fuel use or switch to alternatives such as electric vehicles.
uncertain
that → back → vehicles
'If fuel prices remain elevated for a long period, all this really does is delay the adjustment that eventually has to occur,' he said.
asserted
he → remain → adjustment
'It's a short-term measure that provides relief, but it doesn't solve the underlying problem.'
asserted
it → provide → problem
The Aporia
