NO.004

The Labor Party’s claim

that petrol tax in February 1996 was only 34 and 36 cents per litre is entirely false.

This is incompetence or deliberate deception.

The Commonwealth budgeted for its own revenue 34 and 36 cents per litre but the States

levied an amount of up to 8 cents per litre in addition to that.

This was collected directly by the States in 1996 but for constitutional reasons was

collected by the Commonwealth and passed to the States from August 1997.

Enclosed is the charging instrument of February 2000 showing the excise charge before

tax reform was 46 and 44 cents.

The Budget Paper shows, however, that only 38 and 36 cents was budgeted to the

Commonwealth because the 8 cents, although always collected, was never treated as

Commonwealth revenue but as State revenue.

Upon tax reform the charging instrument shows the rate reduced to 40 and 38 cents per

litre (post August 2000 indexation). Out of this the Commonwealth still guarantees 8 cents

per litre to each State.

Only in Queensland is that returned to motorists – the reason for lower taxes on

petrol in that State.

Labor’s attempt to claim the amount budgeted to the Commonwealth was the same as

the amount levied is deliberately false and is a deceptive attempt to understate actual

taxation by 8 cents a litre.

MELBOURNE

1 February 2001

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