Jim Chalmers leaves door open to fuel excise extension as Labor defends CGT carve-outs
Labor has fuelled hopes of a last-minute extension to its fuel excise cut, with Treasurer Jim Chalmers refusing to rule out more cost-of-living relief as the June deadline approaches.
Treasurer Jim Chalmers has left the door open to extending Labor’s temporary fuel excise cut beyond the end of June, while defending the Government’s revised capital gains tax reforms against claims it is scrambling to fix a flawed policy.
Speaking on ABC Breakfast on Friday, Dr Chalmers repeatedly refused to rule out extending the fuel excise relief, which was introduced after fuel prices surged during the Middle East Conflict. While stopping short of committing to an extension, he stressed the measure remained under active consideration.
“We’re reviewing it from week to week,” he said.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.“Obviously, we’ll need to make a decision between now and the end of the month.”
“It is important cost-of-living help.”
The Treasurer said a final decision would be made “before long”, with less than two weeks remaining before the cut is due to expire.
The comments came as Dr Chalmers was forced to defend Labor’s handling of its controversial capital gains tax changes after weeks of backlash from business groups, investors and the start-up sector. He rejected suggestions the Government was conducting a post-Budget repair job, arguing consultation had always been part of the process.
“Well, the next steps that we announced yesterday are all about providing more certainty for investors, more support for small businesses, and more incentives for innovation,” he said.
Dr Chalmers said the Government had engaged in “meaningful, genuine” consultation and pointed to support from the Tech Council for the latest concessions and consultation process.
He confirmed Labor now considered changes to the small business turnover threshold settled, saying the revised settings would ensure “100 per cent of active small businesses” and about “98 per cent of active businesses overall” would benefit from carve-outs and concessions.
“On the turnover threshold, we consider that to be final now,” he said.
The Treasurer also dismissed claims public backlash had forced Labor to soften its position, arguing opposition to the reforms was driven by those seeking to preserve the status quo.
“No, we expected it to be a very partisan campaign against these changes,” he said.
“There will always be people who argue for the status quo, but the status quo isn’t working for too many Australians, in particular young Australians.”
Dr Chalmers said the reforms were aimed at addressing a housing market that was increasingly locking younger Australians out of home ownership.
“There is a broken status quo in housing,” he said.
“It is locking too many people out of that Australian dream of owning their first home, particularly young people.”
