A. Income tax
B. Corporate tax
C. Fuel tax
D. GST (Goods and Services Tax)
The Australian government said that it will cut the gasoline excise (fuel tax) in half for three months in reaction to the 2026 worldwide energy crisis brought on by the conflict in West Asia and the effective blockade of the Strait of Hormuz.
On March 30, 2026, Prime Minister Anthony Albanese delivered the news after a meeting of the National Cabinet. Starting on April 1, 2026, and lasting until June 30, 2026, the 50% fuel excise decrease will lower the price of gasoline and diesel by 26.3 cents per litre.
Key Points about the Fuel Tax Cut in Australia:
- Tax Halved: The Australian government’s fuel excise, a flat sales tax on gasoline and diesel, was lowered from 53 cents a litre to roughly 26.3 cents.
- Duration: From April 1 to June 30, 2026, there will be a three-month temporary cut.
- Cost to Government: The Australian government is expected to lose A$2.55 billion in revenue as a result of the measure.
- Extra Relief: To help the trucking industry, the Heavy Vehicle Road User Charge, which is around 32 cents per liter of diesel, was also lowered to $0 for three months.
- Reason: Australians experiencing record-high fuel prices—the national average for normal unleaded touched A$2.53 per litre in the week ending March 29, 2026—were given cost-of-living respite by the tax decrease.