Treasurer Jim Chalmers tells states to keep promise on GST breaks for fuel
Jim Chalmers has taken aim at the States for failing to reach an agreement over how to cut GST on soaring fuel prices, telling them they made a promise to Australians and now they must follow through.
Jim Chalmers has taken aim at the States for failing to reach an agreement over how to cut GST on soaring fuel prices, telling them they made a promise to Australians at national cabinet and now they must follow through.
The Treasurer said the Commonwealth was contemplating if it had options including a further cut to the fuel excise, which halved to 26 cents per litre today, but he wanted the States to sort out an agreement as soon as possible.
Premiers and Chief Ministers are set to meet again on Wednesday to continue the talks that foundered a day earlier as jurisdictions argued for different approaches.
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By continuing you agree to our Terms and Privacy Policy.“They made a commitment to the people of Australia, and they need to follow through on that commitment,” Dr Chalmers told reporters in Canberra.
“We are doing our bit with the fuel excise and in other ways, and we need the states and territories to do their bit as well.
“We don’t want to see this drag out forever. We don’t want to see the states and territories at war over this. We want to see the relief flow to motorists.”
The State leaders are at odds over how the windfall gains in the GST from high petrol prices should be used, whether returned to all motorists or offering more targeted relief.
WA Premier Roger Cook is leading the talks over the deal as the chair of the Council for the Australian Federation (CAF).
On Tuesday, Dr Chalmers said the legislation to cut the fuel excise gave him additional powers to make further changes over the next six weeks without having to return to Parliament, which is about to rise for its usual pre-budget break.
That could include making further cuts equivalent to the amount of extra GST being collected on fuel.
“When the price of petrol goes up, the Commonwealth excise stays the same – it’s levied on volume by litre – but the GST goes up because it’s levied on price,” Dr Chalmers said on Wednesday morning.
Opposition Leader Angus Taylor said the proposal for there to be a break on the GST “is now clearly in doubt” and called for the Prime Minister to step in.
“The Prime Minister promised this, said it was going to happen, and it hasn’t,” he said.
“Australians, I believe firmly, need relief at the bowser right now. It needs to be done in a way that’s not going to be inflationary, it needs to be done in a responsible way.”
