Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026; Second Reading

Opened the debate

Chalmers argued that the bill provides necessary, temporary relief to motorists and small businesses facing ongoing cost-of-living pressures. Chalmers stated that the extension reduces fuel costs by 16 cents per litre, saving drivers approximately $11 per tank, and aligns with the scheduled indexation date. The Treasurer emphasised that this support is tapered and responsible, acknowledging that while global prices have moderated, domestic pressures remain. Chalmers highlighted that the measure is part of a broader strategy including tax cuts and fuel security initiatives.

Government response

Chalmers detailed the government's comprehensive approach to fuel security, citing the establishment of a $712 billion Fuel and Fertiliser Security Facility and the securing of significant diesel and jet fuel stocks. Chalmers noted that states and territories agreed to contribute to the discount following National Cabinet discussions. The Treasurer linked the fuel relief to other economic measures, including income tax cuts and minimum wage increases, arguing these actions collectively address cost-of-living challenges. Chalmers commended the bill as a responsive measure to global uncertainty and domestic economic needs.