Greens demand change as Aussie motorists pay 15 times higher fuel tax than private jet owners

Australian motorists are being slugged with a fuel tax rate 15 times higher than that applied to private jet owners, according to new figures.

Drivers pay 53.7 cents in fuel excise for every litre of petrol, while private aircraft are charged just 3.556 cents per litre under Australia’s aviation fuel tax arrangements.

WATCH THE VIDEO ABOVE: Private jet owners pay 15 times less fuel tax than ordinary Aussie motorists

With more than 200 private jets in Australia, the difference in rates means wealthy aircraft owners are paying significantly less tax on their fuel than ordinary motorists.

The figures have emerged as the war in the Middle East continues to drive volatility in global oil markets, putting further pressure on motorists with E10 petrol across Sydney sitting at around 215 cents per litre on Sunday.

Greens target private jet tax break

Greens leader David Shoebridge has called on the Albanese government to change the arrangements, arguing the lower rate is unfairly benefiting some of Australia’s wealthiest people.

“While you’re searching for a supermarket receipt to save 4 cents a litre, Labor’s using your money to give Australia’s billionaires hundreds of millions off their jet fuel bill,” Senator Shoebridge said.

“If someone’s rich enough to own a plane they don’t need help paying for the fuel. Yet again, Labor is working for the 1 per cent, not for you.”

Costings prepared by the Parliamentary Budget Office and reported by News.com.au found aligning the fuel excise rate for private jets with that paid by motorists would increase the fiscal balance by about $1.2 billion and the underlying cash balance by $1.5 billion over the 2026-27 budget forward estimates.

The change would generate an estimated $640 million in 2026-27 alone.

Senator Shoebridge said the current arrangements amounted to a publicly funded benefit for the wealthy.

“Labor’s priorities are all wrong,” he said.

“Anthony Albanese shouldn’t be cutting services for disabled people and pensioners, while helping the 1 per cent fill up their private jets for cheap.

“Parliament needs to follow the Greens lead here and urgently stop this jet fuel tax lurk for the 1 per cent.”

‘Albanese loves a pub test. I don’t reckon this passes it.’

The lower excise rate is not limited to private jets, with the same arrangements applying to specialised aviation fuel and kerosene used by commercial airlines, charter operators and other aircraft.

That includes regional aviation and services such as the Royal Flying Doctor Service.

Speaking on Sunrise, The Nightly’s Richard Clune said the tax treatment was applied across the aviation sector, rather than distinguishing between private aircraft owners and commercial operators.

The lower rate was designed in part to support regional connectivity and competition between airlines, he said.

However, Clune questioned whether the arrangement would withstand public scrutiny.

“Albanese loves a pub test. I don’t reckon this passes it. It does not pass it,” he said.

Triple M’s Cat Lynch said the disparity would be difficult for Australians facing cost-of-living pressures to accept.

“It’s a massive sting,” she said.

“I think it just plays into that same sentiment for the general Australian public that powerful people get concessions because the government is a little bit frightened of those people up top.”

She said the public would struggle to sympathise with wealthy aircraft owners receiving cheaper fuel while households faced pressure from mortgage and grocery costs.

“If you can own a private plane, you probably don’t need a tax cut in order to refuel it,” she said.