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Action for Public Transport (N.S.W.) Inc.

Roads lobby claims a win

posted Wednesday 1 January 2003
A major motoring lobby group has proudly claimed credit for the federal government's back-down on petrol excise. In its 2002 Annual Report, the retiring President of the Australian Automobile Association (AAA), Max Lay says-

"Looking back over the past two years, I have found myself involved in a number of very significant public policy issues.

Perhaps the most significant, as far as outcomes are concerned, was the GST petrol campaign which involved all Clubs and was coordinated by AAA. During that campaign we sought to have the Federal Government return 1.5 cents per litre lost by motorists in the change over to the GST, remove automatic indexation from petrol and hold an inquiry into the fuel tax system. The Government eventually gave ground on all three issues.

The direct outcome for motorists is that today, because of the end of indexation and the return of the 1.5 cents, they are paying around five cents per litre less than they would otherwise have been. That equates to an annual revenue collection of $1.5 billion dollars (sic).

The Government also agreed to review the fuel tax system through an inquiry. While the eventual recommendations from the inquiry were disappointing, the work carried out provides a strong intellectual base to continue arguing for much needed fuel tax reform.

It was pleasing to meet personally with the Prime Minister at the end of the GST petrol campaign At that meeting the Prime Minister gave a clear undertaking that indexation would not be re-introduced."

Meanwhile, public transport users continue to pay ten per cent GST.



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