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Highlights
The federal budget, due Tuesday, is expected to include a fuel excise cut for Australians.
The budget is expected to focus on easing the cost of living pressures and housing affordability.
Critics argue that the government support measures in the budget are targeted to lure voters ahead of elections.
In a bid to lift pressures off Australian consumers, the upcoming federal budget 2022-23 is expected to include a cut in fuel excise. The temporary cut, which is likely to remain for 6 months, is targeted at helping households with soaring oil prices.
Currently, the excise tax stands at 44 cents per litre, which could see a cut of 10 to 20 cents per litre. It means motorists, who currently pay AU$22 in excise for a 50-litre refill, would be paying AU$17 if the tax rate is cut by 10 cents per litre.
The budget, due Tuesday, is anticipated to deliver cost of living relief to Aussies. Treasurer Josh Frydenberg has denied the claims that the Coalition government is trying to secure an election win from voters with the help of the budget. The Australian government has agreed on the temporary cut shortly after Chancellor Rishi Sunak announced a fuel tax cut in the UK.
RELATED READ: Key takeaways for Australia from UK's tax and fuel duty cuts
The tax cut on fuel is likely to uplift the economy during the prevailing Russia-Ukraine war. Despite ongoing global pressures, authorities are doing their best to ensure that domestic economies do not suffer a slowdown.
Recently, the fuel excise was increased by 0.9% due to a massive uptick in oil prices seen across the globe. The government is expected to receive a sizeable boost from this tax hike in the federal budget. Critics argue that the government has decided to take a U-turn and move in the opposite direction as elections are around the corner.
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