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Federal Government Bypasses Senate On Fuel Excise Rise, For Now

The Federal Government’s controversial fuel excise hike is set to go ahead from next month. In response to the Senate’s refusal to pass the fuel excise rise and other measures from May’s Federal Budget, the government has now put the


The Federal Government’s controversial fuel excise hike is set to go ahead from next month.

In response to the Senate’s refusal to pass the fuel excise rise and other measures from May’s Federal Budget, the government has now put the ball in the court of the minor parties with a ‘back door’ solution.

Using the same legislation as the previous Labor government when it introduced the equally unpopular ‘alcopop tax’ on pre-mixed alcoholic beverages, the Federal Government has bypassed the Senate and announced that the excise-rise will begin regardless on November 10.

The initial excise-rise, and future increases under a reintroduction of the biannual scheme in place before 2001, will then have 12 months to pass through the Senate to become legislation.

If it fails to pass through the Senate, any revenue raised from the higher excise would be returned to the oil companies that paid it - not the motorists to whom it was passed-on via higher fuel prices.

This may force the hands of the minor parties to pass the budget measure; who would themselves risk a public backlash if the predicted $2 billion in revenue is returned to oil companies.

The excise-rise was originally set to take place in August and is estimated to raise an additional $19 billion in revenue over the next decade - all of which is intended to be linked to future infrastructure projects “by law” (according to Federal Treasurer Joe Hockey).

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