Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026

Mr REBELLO (McPherson) (12:43): The minister who's walking out now was absolutely right: this bill, the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026, is about the extended reduction of the fuel excise. But it also goes to a few other points as well, and I hope to clarify my view in relation to those points. It goes to responsible government.

The bill supports a 16c reduction per litre, and this follows, obviously, the situation that we've had with conflict in the Middle East. When that conflict began, the coalition called out quite loudly for some time, asking for the government to reduce, to halve, the fuel excise. Eventually, the government came to the table on that, and we supported that measure.

What we're seeing now and being asked to vote on is for a continuation of that extension. However, instead of it being halved, it will be further halved to 16c. So it's a 16c reduction, as opposed to the 32c reduction it was before.

That's going to provide a little bit of relief to Australians, and Australians are doing it tough at the moment. On the Gold Coast, which is the area that I represent, we saw fuel rise quite significantly at the beginning of the Middle East conflict. While this will result in a slight increase, based on what we've seen over the last couple of weeks, it is no doubt a form of cost-of-living relief that Australians truly need at this time.

The coalition is going to support this bill. We are going to vote in favour of the bill. But let's be clear, the coalition voting in favour of the legislation is neither an endorsement of Labor's economic management nor an endorsement of Labor's broader economic plan, or lack thereof, because what we've seen from the Middle East conflict is that it's actually exposed Labor's incompetence.

While the government may try to hide behind the conflict in the Middle East as a shield for its own poor economic management, when we actually unpack the facts, what do we see? We see a situation where 13 out of the 15 interest rate rises that have occurred were before the conflict. So it's disingenuous for the Treasurer to come into this place and make comments insinuating that the reason Australia is in a difficult economic situation and that Australians are hurting and suffering under a cost-of-living crisis is solely to do with what is happening in the Middle East.

We also see a situation where government expenditure has been totally out of control. In fact, we've seen government expenditure outpacing economic growth in Australia at a rate of four to one. It is the highest level of government spending in around 40 years, outside a recession.

Australians are happy to pay taxes if they can see their tax money being well spent. At the moment, most Australians that I speak to and I think most Australians listening would agree with me when I say that they have very little confidence in the way this government is using their taxpayer dollars. It goes to leadership.

The government can come in here and say, 'We're going to provide cost-of-living relief to the Australian people in the form of a continued cut to the fuel excise,' but the coalition has asked for the government's plan to pay for that. We've asked for inflationary offsets, and that's really important, because it's not a small cost. The previous legislation for a cut to the fuel excise cost us $2.9 billion, and this one's going to cost the taxpayers around $400 million.

So it's a substantial cost, but not $1 of that cost has been offset. No member of the government has come in here and said how they're going to pay for it. No-one's come and given us an alternative plan.

I say that as a member of the coalition but one who happens to be the youngest member of the coalition. Because, at the end of the day, it is our future generations who are going to have to pay for every measure that this government implements. Whilst we do support the legislation and the intention of the legislation, all we're doing is putting a bandaid on a wound that we're not focused on healing, because Australians down the track are going to have to deal with this in addition to all the other forms of expenditure that this government has overseen.

I do remind the chamber that when the coalition was in government, we offset spending against savings, and the consequence of not doing that means, as I said, that the next generation is going to be worse off. There's nothing in this that is going to meaningfully attack and address inflation. We've seen this government be in power for the last 4½ years, and there is still no credible plan for how they're going to address inflation in a way that is meaningful and that is effective.

The other part of this legislation goes to the heavy vehicle road user charge, which ultimately goes to transport in this country—our ability to get things around—and to small businesses. The coalition has always stood with small businesses, but they need more support than what we're seeing now. Despite the rhetoric that has come through over the last couple of weeks, especially following the budget, small businesses are really struggling.

They're not feeling that government is helping them or even understanding what their issues are. I think that goes to the ideological difference between those on this side of the chamber and those in government—those on this side of the chamber have experiences directly and firsthand with small business—and it goes to our values. I joined the Liberal Party because I believed in the value of personal responsibility—if you drop something you pick it up, and if you want something you work for it.

But it also means you live within your means. I think those opposite and those in government would do well from adopting a similar approach—from adopting an approach of living within our means as a country and taking some responsibility for our actions, because that's ultimately where this is going. We're here supporting the bill.

We're not going to block cheaper fuel for working Australians, but we do have to ask why Australians are in this position in the first place. It's followed a government that has spent three years adding fuel to the inflation fire through their reckless spending, through record deficits and through no structural reform that's going to actually reduce cost pressures.

I do note that, when the Treasurer presented this bill, in his second reading speech on the legislation, he said: This comes after a budget that is all about making it easier for people to buy their own home. It's got more income tax cuts and is better aligning the treatment of income from labour and assets. Then he went on to say this: … extra fuel excise relief is just the latest … So we've got a treasurer who's linking this bill, this cut to the fuel excise, to the CGT and negative gearing changes that were put through in the recent budget.

He refers to a better alignment of the treatment of income from labour and assets. I don't know which world he's in, but you can't use emergency fuel relief as cover for a permanent tax increase that will push up rents and hurt aspirational homeowners. We all know in this place—or we should know—that cheaper petrol for five weeks doesn't offset a permanent tax on housing investment.

They're completely different things. One's a temporary response to an external shock, and the other is a deliberate choice to tax the aspiration of Australians who want to get ahead. The other component to this legislation is making sure that Australians actually benefit from the cost-of-living relief that is intended.

The coalition, those on this side of the chamber, have asked the government to report to the parliament on what proportion of the relief has reached Australians, not just what was legislated. I'd say that that should be the case going forward in relation to the next month of extension as well, because, at the end of the day, if the savings are not passed on to Australians when they're filling up their tanks, the beneficiaries are not the Australians who are doing it tough right now.

They're fuel retailers and not Australian families. The coalition is going to support this bill, but we do so considering the broader context in which it is being presented, and that is an Australian economy that is being mismanaged and that is resulting in Australians doing it tough. The people that I speak to on the southern Gold Coast—and I have had a number of chats, especially at some listening posts at the markets at Burleigh Heads straight after the initial conflict broke out in the Middle East and the government announced, or followed our lead in announcing, the cut to the fuel excise.

I had a lot of conversations and people said, 'Yes, this is great; it's going to help.' But it's not enough. It's a small part of addressing what is a very large problem. Make no mistake.

It's a problem that is created here at home. When you compare Australia's inflation rates—and we're seeing 4.2 per cent now, well above our target band as a country—with those of like-minded countries around the world, ours is far above them. So it is home-grown inflation.

It's a situation that is created by this government. The scary part is that we're not seeing any meaningful discussion about solutions. So while we do support this bill and we won't stand in the way of cheaper fuel for Australians, we support it knowing well and truly that this is only one small part of a very large problem.

The government must come to the table if we are going to have meaningful cost-of-living relief for Australians at a time when they actually need it more than perhaps they have ever needed it in their lifetimes.