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Dutton Proposes Fuel Excise Cut as Coalition Counters Labor's Tax Relief Plan

The Coalition pledges to halve the fuel excise for 12 months, offering immediate cost-of-living relief while repealing Labor's newly legislated tax cuts set to begin in 2026.

  • Labor's $17.1 billion tax cuts, providing up to $536 annually per taxpayer starting in 2026, passed the Senate late Wednesday night, solidifying their place in the upcoming election debate.
  • Peter Dutton announced the Coalition's plan to halve the fuel excise for 12 months, reducing it from 50.8 cents to 25.4 cents per litre, saving motorists approximately $14 per week or $700 annually.
  • The Coalition intends to repeal Labor's tax cuts if elected, arguing that immediate relief through the fuel excise cut is more effective than waiting for modest tax savings in 2026.
  • The fuel excise cut, estimated to cost $6 billion in lost revenue, is modeled after a similar policy introduced by the Morrison government in 2022, which drew criticism for its temporary nature and inflationary risks.
  • The Coalition's broader platform includes energy and housing policies, such as a gas reservation plan to lower energy costs and measures to increase housing supply, with further details expected during the formal campaign.
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