Special Issue Transporter (28/03/2025) - Federal Election 3/5/25 - Industry Impacts
Vol 45/25, 28 March 2025 - AMENDED
This morning the Prime Minister announced the next Federal Election will be held on 3 May 2025. Campaigning has already ramped up over the past few weeks and now the date has been set, expect a more intensive period of advertising, announcements and commitments leading into 3 May.
One commitment I'd like to address is the Coalition's announcement this week of a reduction to the fuel excise if they win government.
When accounting for any decrease in the fuel excise, it is important to understand the relationship between the road user charge, the fuel excise and the impacts on fuel tax credits.
A reduction in the fuel excise on paper appears to be a win for everyone, however this does not correlate with an associated reduction in fuel prices. History shows from 2022 when the fuel excise was reduced, the fuel price only marginally decreased.
During the period in 2022 when the fuel excise was reduced, the heavy vehicle industry did not benefit due to the adverse impact on the cents per litre (cpl) claimable as fuel tax credits.
As the heavy vehicle industry pays a road user charge, fuel tax credits are claimed on the cents per litre difference between the RUC and the fuel excise. The Excise is indexed twice each year, and the next rise will be in August. If the fuel excise is halved, this will result in no claimable fuel tax credits for the industry, unless there is a reduction in the RUC.
As a refresher, I have detailed in the below graphic the impacts of the proposed changes and how the industry will be affected. Members might like to use the graph to send to Local Members to make them aware of the variations proposed by the Coalition.
As announcements are made from all major parties, we will keep you informed of any positive or adverse impacts on the road freight industry so you can lobby your local members about benefits or otherwise to your business.
Please do not hesitate to contact me if you need to have a conversation about this or any other matter.
Also, we are thinking of everyone currently being impacted by floods around Queensland. If you need support, please contact me on 0418 736 802, Lisa on 0405 152 952 or Dimity (NQ) 0414 770 135.
