Petrol prices are poised to rise in two weeks as the government raises tariffs.
Instead of increasing the fuel excise charge, the government is instead proposing to raise tariffs, allowing the Australian Taxation Office and the Australian Customs and Border Protection Service to collect the adjusted rate of fuel duty.
Labor, the Greens and the Palmer United Party are opposed to the tax increase, claiming the government did not introduce the tariffs into the Senate amid fears it would be knocked back.
The policy changes will take effect from 10 November.
The rate of fuel duty will increase from 38.143 cents per litre to 38.6 cents per litre.
Minister for Finance Mathias Cormann says the impact on households will be “modest” but the impact on the economy would be “significant”.
A typical household will pay around 40 cents per week more as a result of the changes, which equates to about $20 extra per year.
“It will raise an additional $2.2 billion in revenue over the next decade,” Cormann said, adding “The revenue raised from the fuel excise increase will be going toward job creation.”
Opposition leader Bill Shorten labelled the tariffs as “sneaky” saying “every motorist… every time they get out at the petrol pump and put it into the car is paying a new Tony Abbott petrol tax”.
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