Following a meeting of National Cabinet today the Government has announced three measures to address the fuel pressures in Australia as well as unveiling the agreed National Fuel Security Plan.
Fuel Excise Cut
Key among todays announcements is the halving of the Fuel Excise, a reduction from 52.6 cpl to 26.3 cpl, that will come in from this Wednesday 01/04/2026. In making the announcement the Treasurer has identified that it estimates this cut will result in a saving of $19 per average 65 litre tank.
The Excise Cut will apply for 3 months from its introduction this week.
Heavy Vehicle Road User Charge Cut
While the Fuel Excise is halved for 3 months the Heavy Vehicle Road User Charge will also be removed for an additional 3 months, 01/04/2026-30/09/2026. The Heavy Vehicle Road User Charge is a tax the government places on heavy vehicle users.
In making the announcement the Prime Minister noted that this change will “help truckies continue their vital work for our nation”. The combined excise and RUC changes are expected to represent a saving to transport companies of 32.4 cpl on diesel
Usually this administered in the form of a partial credit to transport operators to refund a part of the fuel excise they pay per litre. Usually for every litre of fuel a transport company purchases 52.6 cents of the price is fuel excise. Usually the transport company can put in a claim for a Fuel Tax Credit of 20.2 cents per litre of fuel purchased with their BAS that effectively reduces the fuel excise to 32.4 cents per litre.
The Australian Trucking Association has welcomed the changes. ATA Chair Mark Parry said “Trucking businesses will save 26.3 cents per litre at the pump when they fill up. Their fuel tax credits will increase from 20.2 to 26.3 cents per litre, which they’ll get as usual after they lodge their business activity statement at the end of the month or quarter. In total, the decision will save trucking operators 32.4 cents per litre. It is the lifeline that small trucking businesses need”.
GST Changes
In the post National Cabinet press conference the Prime Minister outlined that the States had agreed, in principle, to take measures needed to ensure that they were not profiting from windfall GST collection that have been seen from the rising fuel prices. At this point it is not clear how this will impact on fuel prices but it is anticipated that further information will be available in the coming days.
National Fuel Security Plan
In addition to the announced changed the Prime Minister unveiled the National Fuel Security Plan.
The National Cabinet has agreed to the National Fuel Security Plan (the Plan) to coordinate a consistent response across the Commonwealth, States and Territories.
The National Fuel Security Plan is designed to keep the community and business updated and provide an early understanding of further fuel security measures that may be required.
The National Fuel Security Plan includes four levels;
- Plan and prepare
- Keeping Australia moving (current settings)
- Taking targeted action
- Protecting critical services for all Australians
All governments will be closely monitoring the evolving situation, and responding to what emerges. Operational plans will be prepared as a precaution in the case the situation deteriorates.
The types of indicators that will inform this work include:
- global market supply conditions, and the outlook for fuel arrivals
- minimum Stockholding Obligation holdings
- insights and data from industry and major users
- retail and distribution trends
- community need and supporting economic activity.
Any shift in response levels will include consultation with relevant industries and sectors, to ensure additional measures are well designed and have the greatest impact.
For more see: https://www.pmc.gov.au/resources/national-fuel-security-plan
