Ready to pay more for your petrol? As widely expected, the Australian Government is set to increase the fuel excise in line with inflation twice a year. The government says this will generate $2.2 billion over the first four years — and be directly tied to fund upcoming major road projects.
In his budget night speech, Treasurer Joe Hockey confirmed that “the government is reintroducing fuel indexation where every dollar raised will be linked by law to the road billing budget. This will ensure there is a stable and growing source of funds to support Australian roads.”
Budget papers released by the government reveal aviation fuels (therefore airline ticket prices) won’t be affected, however “practicable, biannual indexation will commence from 1 August 2014” for car owners.
Included in the funding model is a $1.8 million allowance to increase in Ethanol Production Grants in 2014-15, administered by the Department of Industry, and a $0.7 million increase in the Cleaner Fuel Grants Scheme.
With fuel increases, deregulated university fees and doctor co-payments all in this budget — here's hoping you're not a uni student who drives and gets sick often...