Impact of increased fuel excise on WA road users

11/8/94

A last minute upward adjustment to the lastest increase in Federal fuel excise will cost Western Australian road users a further $3.4 million annually, Transport Minister Eric Charlton said today.

Advice to the States from the Prices Surveillance Authority shows that the latest rise in Federal fuel excise was 2.35 cents a litre for super grade petrol and 1.34 cents per litre for unleaded petrol and distillate.

"Originally, the Federal Government said the increase would be 2.2 cents and 1.2 cents a litre for super and unleaded and distillate respectively," Mr Charlton said.

"The new increase on top of that may not sound very much, but in real terms adds another $3.4 million in revenue to the Commonwealth from WA alone.

"Nationally, the Commonwealth will be reaping an extra $32 million, and there has been no official explanation for the last minute adjustment of the tax increase."

Mr Charlton said the latest increase would see WA road users paying an additional $42 million annually in Federal fuel tax, taking the State's total contribution to more than $780 million per annum.

"This is happening while the carnage on our roads increases and heavy haulage is forced to use deteriorating road surfaces and mix more and more with other road users," he said.

"Unfortunately, not one cent is going to return to WA in the form of badly needed road funds from the Commonwealth.

"The money is going to be soaked up by the Federal Government's enormous social welfare and public expenditure program while the nation's road infrastructure continues to suffer from neglect.

"When every $100 million spent on roads guarantees 4,000 new jobs, produces benefits for the environment and reduces transport costs, why is it that the Keating government continues to rip off road users and ignores the positives?

"The Commonwealth's take through fuel tax is now more than $10 billion per annum, and it is returning just over $1.5 billion to the national road system.

"The only way to stop the rot - to improve air quality, reduce road carnage, bring down the cost of living and help stimulate employment opportunities - is to immediately double that return to roads from the massive pool of funds the Commonwealth collects every year from road users."

Media contact:   Dean Roberts  321 7333