Bracks urged to act on petrol taxes

The Bracks Government is being challenged to spend some of its record revenue from the GST to help reduce the price of petrol and diesel in Victoria.

Leader of The Nationals Peter Ryan said the record high fuel prices were providing a cash windfall for the State Government which receives all of the GST revenue generated from the sale of fuel.

Mr Ryan raised the issue in Parliament today in a bid to secure Bracks Government support for easing the burden on the travelling public, particularly in country areas. Unfortunately, "It was disappointing, but not unexpected, that Mr Bracks side-stepped the issue." according to colleague Bill Sykes, member for Benalla.

“Mr Bracks wouldn’t commit to a rebate – something within his control, instead he blamed the Federal Government for the high fuel costs. I agree that Federal excise on fuel is a significant part of the cost and I would hope that the Member for Indi is representing our interests in Canberra.

“The Victorian Government’s share of GST revenue on petrol prices is in the vicinity of $420 million per year and every 10 cent rise in fuel, delivers another $35 million in revenue to the Treasurer,” Mr Ryan said.

With motorists paying record prices for fuel, the 10% GST impost is building the coffers of the State Treasurer. The total state revenue when the Bracks Government was elected in 1999 was about $20 billion and this year it is expected to reach $30 billion.

Not many people would have received a 50% rise in income over the past six years and it’s ridiculous if the Treasurer suggests that services would have to be cut to rebate some of the fuel GST to motorists.

“Families and business owners deserve some relief from this hidden tax and the State Government can help provide it by returning some of the massive windfall to the travelling public.”

Mr Ryan said the Bracks Government should commit to reducing the fuel costs for motorists, particularly in regional areas.

“Outside the metropolitan locations the fuel prices are well in excess of the city prices and it is already having major social and economic impacts,” Mr Ryan said.

“If people are forced to reduce travel to visit family and friends or attend social and sporting functions it will add to the isolation of rural families and have significant social and health impacts.

Mr Ryan said the ‘tax on a tax’ situation also needed to be addressed with GST charged on top of Federal Government excises.

“The insidious tax on a tax is hurting all motorists and as the recipients of the GST revenue, it is the State Governments who can lead the way by returning some of the windfall to motorists.”