Don’t cut fuel taxes, motoring groups urge

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Australian Automobile Association (AAA) MD Michael Bradley says the federal government should resist growing pressure to reduce the fuel excise tax. He argues that although such a move would provide motorists with temporary relief from rising petrol prices, it would result in less funding to repair and upgrade Australia’s roads:

“We need to be investing more in transport, not less,” said Michael Bradley, managing director of the Australian Automobile Association. The AAA represents state motoring clubs such as the NRMA in NSW and RACV in Victoria…

More than $49 billion will be collected in fuel taxes between 2020 and 2024, according to budget estimates…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.