The Greens Have Scuttled The Australian Government's $2.2 Billion Fuel Excise Increase

Getty/Cole Bennetts

The Coalition’s proposed $2.2 billion budget measure to reintroduce indexation on the fuel levy – which would have led to a steady rise in the cost of filling up the family car – has been scuttled by the Greens.

The Greens were believed to be initially supportive of the measure, which is ostensibly environmentally friendly as it increases the cost of car use.

However Greens leader Christine Milne said today that the party wanted to see at least some of the revenue raised being spent on public transport. The Coalition proposes to spend all the money on roads infrastructure.

The Greens are also opposed to rebates to mining companies.

“It is a difficult issue for us because we want to see people using less polluting fuels,” Milne said, according to The Guardian. “But if we facilitate this we will see more and more money going into roads with more cars on them.”

Milne added: “Why would we want to put more money into the Abbott government’s pockets to roll out more freeways and tollways that people don’t want.”

With the measure opposed by Clive Palmer’s PUP and Labor, the measure now faces defeat in the Senate.

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