Chalmers Rules Out Fuel Excise Extension in Budget
Jim Chalmers has ruled out extending the temporary 26-cent cut to the fuel excise in the May budget, saying the measure will run only until the end of June. The Treasurer said the budget will play a "helpful, not harmful, role in fight against inflation," while leaving little room for more cost-of-living support.
Chalmers and the Budget
Chalmers said on Monday that the government will save more than it spends in the budget, which is due next Tuesday. He also said petrol prices had come off substantially from their March highs, giving the government less reason to prolong the cut before it expires.
"We will save more than we spend in the budget," he said. On the fuel tax cut, he added: "When it comes to the fuel tax cut, that will be in the budget up until the end of June. Clearly, if the economy deteriorates quicker and worse than what we’re anticipating in the budget, of course we will consider our options at that point."
Tax Relief Limits
Asked about further income tax relief, Chalmers said: "We’ve already got tax cuts coming." He said mooted changes to investor taxes would not be used to pay for extra tax relief for Australian workers, narrowing expectations for any new offsets in the budget.
The decision lands as the Reserve Bank’s monetary policy board begins a two-day meeting that most economists expect to end with a third straight interest rate hike on Tuesday. Chalmers said the budget will be framed to avoid adding pressure to inflation, even as the government weighs how much room remains for support if conditions worsen faster than expected.
June Deadline
For motorists, the immediate effect is that the excise cut stays in place only through the end of June unless the government changes course later. Chalmers tied any further action to the economy deteriorating quicker and worse than forecast, making the next budget decision a short-term pause rather than a permanent extension.
