Steve Fielding (Victoria, Family First Party) Share this | Hansard source

Family First appreciates the work that has gone into the report Petrol prices in Australia, but it will make no difference to the lives of ordinary Australian families. As Family First said when the inquiry was announced, it is just a stunt to take attention away from the lack of government action on petrol prices. The inquiry was proposed by the opposition in an attempt to also take attention away from its lack of action. This is the 45th petrol inquiry since 1983. What Australians want is not more talk but action.

Family First is the only party with a plan to give relief to families and small businesses. Family First has repeatedly called on the federal government to give families and small businesses relief at the bowser by cutting petrol excise tax by 10c a litre. That would cost $3.8 billion. If that had been part of the budget, it would have helped protect families, now and in the future, from an interest rate hike.

A cut in petrol tax is the only way the government can have an immediate and real impact on petrol prices. We do not need an inquiry to tell us that we are taking too much tax on petrol. Every time families fill up their tank, nearly 50c a litre in taxes goes to governments. Excise tax accounts for 38c a litre and the rest is made up of GST. Unfortunately, the government seems to be too attached to the tax revenue to let go of it. The Labor Party is no better, as it will not commit to a tax cut either. Both the major parties clearly are not serious about putting families first.

Sitting here in Parliament House, where we do not pay for petrol ourselves, we do not feel the same pain. Family First says it is time to cut petrol tax. Some families will have had to revise their Christmas travel plans because petrol prices are still quite high for families. Earlier this year a survey published in the Age asked people to rank their priorities for reducing tax. Almost half the respondents—45 per cent—said they wanted a cut in petrol tax. Yes, petrol prices are down from the highs of $1.40 or $1.50 that we saw earlier this year, but they are still a lot higher than a few years ago and people are feeling the squeeze.

The impact that petrol prices have on the family budget is demonstrated by the fact that people will go to the extent of using supermarket shopper dockets to get a 4c-a-litre discount. Family First is proposing a 10c cut in petrol tax. Coles, Woolworths and other retailers think 4c a litre is important and makes a difference—and people clamour to get that discount. Imagine what would happen if there was a 10c-a-litre cut in petrol tax? It would make a huge difference to families. Families are also struggling to pay higher mortgage payments, courtesy of the recent interest rate rises.

Let us think about the economics of this situation. We had a budget surplus of about $14 billion last year. Yes, you could say that is good management and give it a big tick, but you could also say we are taking a heck of a lot more than we need. So, quite rightly, the government thought, ‘We’ll give it back to people.’ Around $9 billion was given back to people in tax cuts. But why should that automatically mean income tax cuts? Why not do both—income tax cuts and petrol tax cuts? That would take pressure off inflation and that would take pressure off interest rates. It would have been more than affordable to do it in the last budget. We could have made sure that we handed money back to people in the outer suburbs and regional areas, where they do not have public transport alternatives. Families are struggling with high petrol prices and they will continue to struggle until the government and the opposition get serious about cutting the obscene level of petrol tax.