Australians to Pay More for Petrol After Sneaky Government Tax Hike

 By 
Jenni Ryall
 on 
Australians to Pay More for Petrol After Sneaky Government Tax Hike
Credit: Getty Images

SYDNEY -- Motorists in Australia can expect to cough up even more for petrol at the servo over the next four years, with the Liberal Government raising the fuel tax.

The Australian Federal Government announced on Tuesday it will raise the tax over the next four years, even with a majority of Senate opposing the legislation.

This is another hard hit for motorists, who are already forking out around $1.49 cents a litre, based on last week's average.

The tax will rise from 38.143 cents per litre to 38.6 cents per litre, seeing revenue of $4 billion over a four year period. This means a household consuming 50 litres of fuel a week will pay an extra 40 cents a week.

Finance Minister Mathias Cormann told the media in Canberra the tax will increase from Nov. 10 without legislation, allowing for revenue to be collected while the issue is debated in the Senate.

"While the impact on individual households will be modest, this measure will provide a predictable and growing source of revenue, which will help the government boost its investment in job creating and productivity enhancing road infrastructure," Cormann said.

The government is allowed to raise taxes before they are legislated using a "tariff proposal." The previous Labor government used a similar method in 2008 to implement its tax on alcopops.

Opposition Leader Bill Shorten said Tony Abbott's government has "ambushed" Australians with this fuel tax rise, which will raise $2.2 billion for the government over four years.

"The Abbott Government has announced a new, sneaky tax on Australian motorists," Shorten said. "He has done this by bypassing the parliament of Australia."

The biggest stories of the day delivered to your inbox.
These newsletters may contain advertising, deals, or affiliate links. By clicking Subscribe, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy.
Thanks for signing up. See you at your inbox!