Adverse effect of increased Commonwealth fuel excise on WA road users

8/8/95

Road users in Western Australia were now contributing an additional $25 million annually to Federal Government coffers as a result of the latest increase in the Commonwealth fuel excise, Transport Minister Eric Charlton said today.

Mr Charlton said the current price adjustment, brought about by the Commonwealth policy of indexing Federal fuel excise with the CPI, had added 1.03 cents per litre to leaded petrol, taking the total excise paid to 35.61 cents per litre.

ULP and distillate increased 0.97 cents to 33.51 cents per litre.

Mr Charlton said the latest rise meant Western Australians would now contribute $870 million in Federal excise every year, but Commonwealth allocations of road funds back to WA remained at $156 million.

"Since August, 1993, Federal fuel excise has been increased by 9.46 cents a litre for leaded petrol and 7.36 cents per litre for ULP, raising a massive $210 million per annum in extra revenue from WA alone," he said.

"Not one cent has been given back to roads and Commonwealth road funds now represent less than seven cents per litre of road fuel consumed."

Mr Charlton said the indexing system allowed the Commonwealth to regularly increase its revenue from Federal fuel excise without further explanation to the public.

"Each increase raises hundreds of millions of dollars across Australia for the Commonwealth and none of it is returned to roads," he said.

Mr Charlton said the ongoing 'Fix Australia - Fix the Roads' campaign was designed to raise public awareness of the Federal Government's huge taxing regime over fuels and convince the Commonwealth to at least double its road funding allocation to WA and the other States.

"I remind WA road users that the one-off four cents a litre State fuel levy is being returned in full to WA roads, improving road safety and quality and traffic safety," he said.

Mr Charlton said the question remained:  When is the Federal Government going to do likewise?

Media contact:  Ian Hasleby 321 7333