Each fuel tank to be a gold coin tax donation

THE average motorist will be paying $68 extra annually just in fuel taxes within four years.

That's even without taking fuel prices rises into account.

If prices continue to rise at the rate seen last year, unleaded fuel will cost north of $1.70 a litre by 2018. A 60-litre tank will be about $100.

More than 40 cents a litre will soon be paid on fuel.

"This will be like a gold coin donation to the Federal Government every time you fill up your car," Australian Automobile Association (AAA) chief executive Andrew McKellar said.

That news was part of the hard-line budget delivered by Treasurer Joe Hockey this week.

Fuel excise is 38.1 cents a litre, but as part of the new budget will rise in line with inflation twice a year.

The excise has been locked at that figure since the Coalition dumped indexation in 2001.

Forecasts are for the excise to rise about one cent per litre each year.

The trade-off is the Federal Government has maintained strong roads infrastructure plans.

But the RACQ's executive manager public policy Michael Roth said this tax was a blatant cash grab.

"The increase in the fuel excise will take about $40 million from Queenslanders in 2014-15, and will rise by a further $70 million each year," Mr Roth said.

"The fuel excise raises more than $15 billion dollars annually and despite the government's commitment to roads it still siphons much of this to consolidated revenue. Motorists shouldn't be slugged again while the trucking and mining industries continue to receive subsidies."

The AAA plans for fight for a better deal for motorists, believing this is not fair value for money.

"While there is a significant investment in roads and infrastructure in this budget, and the government has opened the door to having a direct link between motoring taxes and road funding, it falls well short of what motorists want," Mr McKellar said.

"It is totally inadequate at that out of the 38 cents per litre that motorists currently pay in tax the government has only committed that one cent will be guaranteed to go to future road funding."


The average price of unleaded across Queensland in 2013 was 154.3cpl, 4.2cpl higher than 2012.

The average price of diesel across Queensland in 2013 was 156.5cpl, 3.3cpl higher than 2012.

Last year, the Sunshine Coast was the cheapest place to buy unleaded (145.7cpl) in Queensland and Gympie was the cheapest region for diesel (152.0cpl).

(courtesy RACQ)