Independent research shows two-thirds of Australians want all the money raised from fuel excise put back into road and transport infrastructure.
So says the Australian Automobile Association (AAA) following federal treasurer Jim Chalmers’ announcement that fuel excise will be reinstated to its full rate on Wednesday night, September 28.
The poll of 1910 Australians in August saw cost of living as the number one issue for 53% of those polled, well ahead of health (9%) and climate change (3%).
Fuel costs were identified by 10% of those polled as their top issue of concern (included within the cost-of-living total).
Key findings include 67% support for 100% of the tax raised from motorists through fuel excise be put back into road and transport infrastructure, 56% would support the fuel excise going back to its full rate but only if all the money raised is spent on transport infrastructure, and 60% oppose the fuel excise increase if no new measures (such as 100% reinvestment) are enacted.
“High fuel costs continue to be a major concern for Australian motorists, who clearly expect the taxes they pay at the bowser to be spent on making their transport network safer and more effective,” says AAA managing director Michael Bradley.
“It is clear that a strong majority of motorists oppose a 25 cent per litre increase in fuel excise, but motorists are more accepting of this tax if they see it being spent on the roads and transport infrastructure their communities need.
“The AAA again calls for the October Budget to allocate 100% of fuel excise revenue raised to Commonwealth funding of land transport infrastructure.”
The AAA did not support the March Budget’s halving of fuel excise as it reduced revenue available for infrastructure investment by $3 billion, while doing nothing to address the sustainability or fairness of Australian motoring taxation, nor the factors that continue to drive up prices.
The AAA also flagged concerns there was no guarantee the cut would be passed onto motorists by fuel retailers.
It adds that Australia’s transport infrastructure has slipped down the world rankings. The World Economic Forum analysis of global transport infrastructure shows Australia’s world ranking slipped 20 spots in the four years to 2019, from 18th to 38th place, to now sit behind India, Dominican Republic, and Azerbaijan.
