NO.092

On 1 July 2000, as part of the introduction of the New Tax System, tax on diesel fuel

for heavy transport fell by 24 cents per litre.

Transport vehicles over 20 tonnes (and vehicles over 4.5 to 20 tonnes outside

metropolitan areas) are eligible under the Diesel and Alternative Fuels Grants Scheme

(DAFGS) for a grant which reduced the impact of excise from 44 c/litre to 20c/litre.

(Transport businesses also get full input tax credits for GST on any purchases, including

fuel). This means that owner-drivers of heavy transport vehicles started paying 24 cents a

litre less tax on their fuel from 1 July.

Unlike Europe, blockading owner-drivers in Australia have already received a dramatic

cut in tax on fuel.

If Labor had had its way, tax on diesel would be at least 24 cents a litre higher

today.

The blockade action therefore is not related to tax on fuel. It relates to contractual

or industrial demands by the owner-drivers.

Owner-drivers should not attempt to hold the public to ransom on contractual or

industrial demands.

SYDNEY

26 September 2000