Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill amends the Excise Tariff Act 1921to halve the excise rate which applies to domestically produced petrol and diesel. This means the excise rates for petrol and diesel will fall from 44.2 cents per litre to 22.1 cents per litre.

The Russian invasion of Ukraine has seen fuel prices increase, adding to the cost-of-living pressures already faced by families and the cost of doing business more broadly. As part of Australia's plan for a stronger future, the government is taking decisive, responsible and temporary action to reduce the pressure of high fuel prices on household budgets across Australia.

The temporary 50 per cent reduction in excise will apply to all fuel products, other than aviation fuels, for six months from 30 March 2022 to 28 September 2022. Existing indexation arrangements will still apply to the reduced rates in August 2022. At the conclusion of the six months, the excise rates will revert to the previous rates, including indexation that would have occurred on the full rates during the six months.

The Australian Competition and Consumer Commission will continue to monitor the prices, costs and profits relating to the supply of petroleum products in the petroleum industry in Australia, to help ensure benefits are passed on to the intended recipients, the Australian people. This standing direction from the Treasurer is currently in place until December 2022.

This bill is complemented by measures in the Customs Tariff Amendment (Cost of Living Support) Bill 2022 and the Treasury Laws Amendment (Lowering Household Costs and Other Measures) Bill 2022.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.

Leave granted for second reading debate to resume at a later hour this day.