As we process the details of the 2022-23 Federal Budget announcements, we are firstly providing you with important information on the impacts of the reduction in the Fuel Excise on the Road Freight sector.
From 12.01 today (30/03/2022), the excise and excise equivalent customs duty (excise) rates for petroleum, diesel and all other fuel and petroleum-based products (except aviation fuels), will be halved for 6 months from 44.2c/l to 22.1c/l. The halving of full excise rates will end at 11.59pm on 28 September 2022.
It is important to understand how this will impact your business. We strongly encourage members to seek professional advice from your accountant or a specialised transport accountant to understand the implications for you on freight rates and fuel levies/surcharges.
To understand how this will impact our sector, we provide a breakdown of the key points:
- From 30/3-28/9/2022 the fuel excise will be reduced to 22.1 cents from 44.2%
- There is no corresponding reduction in the road user charge RUC
- Trucking operators will only get a benefit of 4.3 cents/litre lower than the road user charge (26.4c/litre)
- Your business will pay 22.1/litre in duty at the pump/or bulk purchase rather than 44.2c/litre
- You will NOT be eligible for any fuel tax credits for on-road fuel consumption during the six month period of the measure.
We will provide further advice today on other budget impact for your businesses.