Australia’s Opposition has responded to the Government’s surprise tax cut with plans to reduce the excise on petrol as the pre-election battle to convince voters they are doing more to address the cost of living crisis escalates.
Opposition Leader Peter Dutton has promised to reduce the price of petrol by 25¢ a litre for one year by cutting the excise on fuel in an A$6 billion (US$3.8 billion) pledge to be formally announced on Thursday night in the reply to the Government’s budget.
The centrepiece of the ruling Labor party’s budget on Tuesday was a two-phased reduction in tax rates for all 14 million Australian taxpayers as part of an A$17.1 billion ($10.7 billion) package worth $268 in the 2027 financial year and $536 a year later for a worker with average earnings.
Although they vary around the country, petrol prices in Australia average about A$1.80 (US$1.13) per litre.
Dutton said he would halve the excise on petrol and diesel from 50.8¢ to 25.4¢ per litre, saving a household filling one vehicle per week about $14, compared to the $10.30 a week from the Labor tax cuts, according to media reports.
“If elected, we will deliver this cost-of-living relief immediately, whereas people have to wait 15 months for Labor’s 70¢-a-day tax tweak,” Dutton said in a statement.
The leader of the Liberal/National Party (LNP) Opposition has refused to rule out his own version of the tax cuts, which have been passed by the House of Representatives but not the Senate, where Labor is reportedly short of one vote.
Labor and the LNP are running neck and neck in the opinion polls ahead of an election which must be held by 17 May and could be called as early as this weekend by Prime Minister Anthony Albanese.
