I move that this Bill be read a second time.
Today the Albanese Labor government is introducing the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026.
This Bill will extend fuel excise relief for another month to take some of the sting out of petrol prices and help Australians with the cost of living.
It does so in a considered and calibrated way – acknowledging support is still needed while tapering that support over time as we return to more normal settings.
We welcome the agreement last week between the United States and Iran, but we desperately need it to stick.
We need the Strait of Hormuz to be opened – and to stay open.
We cannot afford another false dawn or another false start.
From an economic point of view, the end of the war cannot come soon enough.
But even after the signing of that deal, even after the proper opening of the Strait of Hormuz, we’ll still be paying a hefty price for these hostilities long after they end.
Despite the welcome and substantial drop in fuel prices, we know people are still under pressure.
That’s why we are taking action to provide a bit more help to Australian motorists and businesses.
The Bill extends fuel excise relief for another month, making petrol and diesel 16 cents per litre cheaper compared with normal prices, saving Australians around $11 per tank.
It follows our three‑month cut to the fuel excise of 32 cents per litre we announced in March.
This additional support will commence on the 1st of July and run to the 2nd of August, in line with the scheduled fuel excise indexation date.
Following discussions at National Cabinet, the States and Territories have also indicated they are willing to contribute to this discount.
In addition to this Bill, we are also reducing the Heavy Vehicle Road User Charge by 16 cents per litre which will save truckies $64 on a 400‑litre tank of fuel.
This Bill to extend fuel excise relief is both responsive and responsible.
It is responsive to changing global circumstances and the pressures people are under.
Since the war in the Middle East broke out almost 4 months ago, we have seen higher fuel prices across the world.
We welcome that prices have moderated significantly from these peaks, providing Australians some much needed relief.
Since the end of March, petrol prices in most capital cities are around 90 cents per litre lower and diesel prices in most capital cities are more than $1 per litre lower.
Since the conflict started at the end of February, petrol prices are lower in almost all capital cities and diesel prices are on average around 20 cents per litre higher.
This Bill recognises that although fuel prices have moderated recently, people remain under cost‑of‑living pressure.
Australians didn’t choose this war, but they continue to face the costs and consequences of it.
That’s why a more modest but still meaningful discount is the appropriate way to continue this support for a bit longer.
This Bill delivers that cost‑of‑living relief in a responsible way because it is temporary and it is tapered.
We know that economic and fuel market recovery will take time, and this extra month will help Australian motorists and businesses as this support tapers off and we return to normal excise settings.
It is also a responsible way to help to manage demand at service stations across the country towards the end of this month.
This responsible cost‑of‑living relief is in addition to all the other action we are taking on fuel including:
- creating the $7.5 billion Fuel and Fertiliser Security Facility for additional supply and storage
- securing over 800 million litres of diesel and 150 million litres of jet fuel by Export Finance Australia
- providing $3.2 billion to establish the Australian Fuel Security Reserve and bring our total stocks of diesel and jet fuel to 50 days
- legislating new ACCC powers to enable faster, coordinated industry responses during exceptional circumstances
- supplying a $1 billion Economic Resilience Program for loans to eligible businesses, including heavy vehicle operators
- releasing $1.1 billion in support for domestic production of low carbon liquid fuels
- providing over $80 million to roll out more kerbside and regional EV chargers and electrify Australia Post’s delivery fleet.
This all helps to take pressure off – for the farmers who grow our food, the truckies who get goods to where they’re needed, and the businesses that sell our everyday essentials.
It also builds on the other ways we are providing responsible cost‑of‑living relief, including income tax cuts for every taxpayer, making medicines cheaper, helping more Australians into a home, and backing higher wages for workers.
From July 1, we’ll have more temporary cost‑of‑living help in an extension to the fuel tax cut, as well as more permanent cost‑of‑living help in another round of tax cuts for every taxpayer.
It comes after a Budget that is all about making it easier for people to buy their own home, more income tax cuts and better aligning the treatment of income from labour and assets.
All of these measures are about helping Australians with the cost of living and responding to the very real pressures they are facing, while shoring up our critical supply chains and navigating all this global uncertainty.
This extra fuel excise relief is just the latest, but still a very important, way we are continuing to help Australian families and businesses.
I commend this Bill to the House.
