Dutton Proposes Fuel Excise Cut as Coalition Counters Labor's Tax Relief Plan

The Coalition pledges to halve the fuel excise for 12 months, offering immediate cost-of-living relief while repealing Labor's newly legislated tax cuts set to begin in 2026.

Labor's $17.1 billion tax cuts, providing up to $536 annually per taxpayer starting in 2026, passed the Senate late Wednesday night, solidifying their place in the upcoming election debate.
Peter Dutton announced the Coalition's plan to halve the fuel excise for 12 months, reducing it from 50.8 cents to 25.4 cents per litre, saving motorists approximately $14 per week or $700 annually.
The Coalition intends to repeal Labor's tax cuts if elected, arguing that immediate relief through the fuel excise cut is more effective than waiting for modest tax savings in 2026.
The fuel excise cut, estimated to cost $6 billion in lost revenue, is modeled after a similar policy introduced by the Morrison government in 2022, which drew criticism for its temporary nature and inflationary risks.
The Coalition's broader platform includes energy and housing policies, such as a gas reservation plan to lower energy costs and measures to increase housing supply, with further details expected during the formal campaign.