Government uses administrative powers to raise fuel tax

The government has used its administrative powers to increase the tax that motorists pay on fuel. The controversial budget measure is currently encountering difficulty in the Senate, so the government has adjusted the indexation under the assumption that there will eventually be legislative approval.

As of November 10, the tax on fuel was raised by approximately 0.5 cents per litre (from 38.143 to 38.6 cents).

According to Finance Minister Mathias Cormann, the impact of the increased tax will be minor for most drivers. However, the Labour Party and the Australian Automobile Association have been quick to criticise the increase, claiming it is an unfair tax for Australian motorists.