Motorists should plan a temporary fuel tax cut to end in September, with gasoline prices rising to increase pressure on the cost of living.
Treasurer Jim Chalmers says it will be “incredibly difficult” to continue the fuel tax indefinitely amid growing government debt and economic challenges such as high inflation and falling real wages.
“(People) should assume the petrol price cut will start in September,” he told a Guardian Australia podcast.
“Obviously we take into account the circumstances as they evolve, and the budget and everything else.
“But nothing materially has changed to make me think we could continue that indefinitely, or even significantly longer than September.”
The previous administration announced a fuel tax cut of 22.1 cal every six months in its March budget to help alleviate the sting from high gasoline prices caused by global oil restrictions.
In June, the national average price for unleaded gasoline reached the second highest level in history, not far from the record price recorded shortly before the federal budget.
Mr Chalmers said the inflation challenge, which reached an annual rate of 5.1 percent in the March quarter, was “incredibly serious”, but he did not believe Australia would return to a wage-price spiral in the style of wages. the seventies.
“If we can get through this difficult period – however long it takes, six or 12 months, or whatever it may be – I think our opportunities after that are still greater than our challenges, but we have to get through this period first “, he said. said.
Mr Chalmers said Labor planned to fulfill its election obligations while restoring the budget by tackling wasteful government spending on contractors and consultants and raising more money in multinational taxes and out-of-pocket expenses from foreign investors.
“We’re not here to mess around or take up space, we’re here to make people aware of the challenges and also the opportunities, and see if we can chart a course together,” he said.