Question Time AU

Matter of Public Importance

Fuel

Senate · Monday 29 June 2026

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

Senators debated the government's decision to increase the fuel excise by 16 cents per litre, with One Nation and the Greens opposing the move as inflationary and harmful to households and businesses. The Labor Party defended the increase as a temporary relief measure that was always intended to expire, arguing it allowed for a sensible return to normal settings while supporting other cost-of-living measures. The Nationals supported the continuation of fuel tax credits for off-road users in agriculture and mining, while the Greens called for the abolition of these credits for large corporations. The debate concluded without a vote, as is standard for Matters of Public Importance.

Outcome

No vote was taken as the matter was a Matter of Public Importance.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Malcolm Roberts (QLD) (Pauline Hanson's One Nation Party) One Nation

Roberts argued that the 16 cent per litre excise increase, which would raise pump prices by approximately 20 cents including GST, was a tax on those who could least afford it. Roberts claimed that reducing the fuel excise reduces inflationary pressure by lowering input costs across the economy, citing One Nation's previous policy to cut the excise by 50 per cent. Roberts called for the government to freeze fuel excises until June 2028 and cancel indexation increases to provide respite from high inflation. Roberts attributed the need for the tax rise to government waste on projects such as Snowy Hydro 2.0 and the Suburban Rail Loop, which he described as financial disasters.

Government response

Charlotte Walker (SA) (Australian Labor Party) ALP

Walker stated that the original fuel excise reduction was always temporary and introduced during extraordinary circumstances caused by conflict in the Middle East. Walker argued that the government was extending support through a sensible taper, providing around $11 in relief for a typical 65-litre tank fill-up until 2 August. Walker highlighted that the government was also reducing heavy vehicle road user charges and implementing broader cost-of-living measures including tax cuts and energy bill relief. Walker noted that the ACCC was monitoring fuel prices to ensure savings were passed on to consumers and that the government had invested in fuel security and storage.

Opposition response

Susan McDonald (QLD) (National Party) Nationals

McDonald emphasised the importance of the Fuel Tax Credits Scheme for businesses operating off public roads, particularly in fisheries, agriculture, and mining. McDonald provided figures showing that without the rebate, cane harvesters faced increased costs of $13,800 over a crushing season, while prawn trawlers and mining trucks faced significant daily cost increases. McDonald argued that fuel tax credits prevent fuel excise from acting as a tax on business inputs used off-road, ensuring fairness for industries that do not receive subsidies like those in the EU or US. McDonald stated that removing these credits would raise the price of making food, resources, and essential goods across the country.