How Albo’s government is going to get more of your money as taxes are hiked on petrol, beer and spirits in line with automatic indexation

The government will get much more money from taxes on gasoline, beer and spirits Automatic indexing to keep pace with inflation comes into effect this week.

The biennial increase in fuel and alcohol taxes came into effect on Monday, causing the price of both to rise in line with the consumer price index, regardless of which party is in government.

The tax on petrol will rise from 48.8 cents per liter to 49.6 cents per liter before GST is applied, meaning drivers filling up the country’s most common small car, the Toyota Corolla, will pay $25 in fuel duty alone must pay.

Those looking to shake off their budget blues with a tipple are faring no better as the alcohol duty hike pushes the price of a pint of beer up by 90p, again before GST is applied, according to the Brewer’s Association.

According to the Brewers Association of Australia, Australia is the third country in the world with the highest taxes on alcohol, after Norway and Finland. According to the Brewers Association of Australia, about 42 percent of beer costs are taxes.

The tax on a $50 pack of beer is about $20, while the tax on a 700ml bottle of gin retailing for $70 is about $30.

Australians pay $20 in taxes alone for a $50 case of beer or $30 for a $70 700ml bottle of rum

In 2021-2022, the government received about $2.6 billion in excise and customs duties on beer, while the windfall from the harder drink was double that at about $5 billion.

According to the 2021-2022 federal budget, gasoline is dwarfed, with fuel taxes responsible for 3.2 percent of total government revenues, at $18.2 billion.

Most of that money should go to road infrastructure projects, as much as 91 percent, but in the 2021-2022 budget only 68 percent was used for that purpose.

Electric car owners and wine drinkers will escape the tax increase because cars that run without gasoline, such as a Tesla, do not incur fuel taxes and wine is exempt because it is taxed on its wholesale value rather than its alcohol content.

The Australian Automobile Association said in a submission to the 2024-25 budget process that fuel duty is expected to generate $3 billion more than last financial year, despite more electric vehicles on the road.

“While the number of people paying fuel taxes decreases, their collective tax bill increases,” the AAA said.

“In general, people on lower incomes and regional Australians will pay more than people on higher incomes and in capital cities.”

Registration data noted by AAA shows that electric vehicle ownership is concentrated in the CBD and inner-city areas.

The city of Brisbane has the highest number of electric vehicles in the country, followed by the ACT and Gold Coast.

In NSW, the council areas of Sydney, Northern Beaches and Ku-ring-gai were where people owned the most electric cars.

Petrol prices at the pump will also rise from this week, with Australians paying $25 in fuel duty alone when filling up a small car with a 50-litre tank

Finance Minister Katy Gallagher last Thursday defended the price rise as a regular occurrence.

“In relation to the indexation schemes around alcohol, this is something that happens,” she says.

“This is happening… as normal for governments of both persuasions, these are the tax arrangements that remain in place.”

However, Ms Gallagher has not ruled out changing duty rates to combat the current cost of living crisis.

“We look at these things with every budget, we look at what is possible, what is affordable,” she said.

But Independent MP for Fowler in Western Sydney, Dai Le, called on the government to freeze petrol duties

“With the cost of living, the people of Fowler are struggling… They are under stress and paying more for everything,” Ms. Le said.

Fuel duty was temporarily halved for six months in 2022 by the Morrison government to ease pressure on pockets at the petrol pump, but Treasurer Jim Chalmers has given no indication that Labor is considering a similar move.

“I listen respectfully to the suggestions made to us by industry colleagues and industry groups, but my job is to keep the budget flowing while we otherwise roll out billions of dollars in cost-of-living relief,” he said. he.

“This includes electricity bill relief, cheaper childcare and medicines, rental assistance and bigger tax cuts for more people in Fowler and across Australia.”