Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026

Current status

This bill became law on Apr 1st, 2026.

Policy area

Budget, tax & economy

What does this bill do?

The government gets a short-term funding safety net to respond to fuel price spikes and supply shortages before 30 June 2026.

Why was it introduced?

Possible fuel price spikes and supply shortages before 30 June 2026 left the government needing a rapid funding safety net. The bill lets the Finance Minister approve fuel security spending from the Consolidated Revenue Fund as a non-ordinary annual services advance, alongside the No. 1 bill.

Broader context

Australia already relied on just-in-time fuel supply chains and existing budget appropriations, but the Iran war disrupted global fuel supplies, pushed high oil prices to the bowser and created localised diesel shortages in regional, rural and remote areas. The government responded with fuel security appropriation bills to give the Finance Minister a $2 billion emergency funding capacity until 30 June 2026, Parliament passed the No. 2 bill on 1 April, and temporary fuel excise relief took effect the next day.

Key criticism

The main criticism was that the bill was a temporary emergency funding patch that did not fix Australia’s deeper fuel security problem, including limited domestic reserves, storage and production capacity. Coalition speakers supported passage but said the government had acted too late and should go further, while a Jacqui Lambie Network Senate amendment sought a funded 90-day in-country fuel reserve.

Who supported it?

The government introduced this bill. It passed on the voices.

Introduced in House 30 Mar 2026

Passed House 30 Mar 2026

Passed Senate 01 Apr 2026

Became law 01 Apr 2026

Did it become law?

Yes

Became law 01 Apr 2026

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

2 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

The government gets a short-term funding safety net to respond to fuel price spikes and supply shortages before 30 June 2026.
This Act does not give departments an upfront program budget; it creates an emergency advance for fuel security spending if needed.
The Finance Minister can approve up to $1.2 billion under this Act, as part of a $2 billion fuel security reserve across two Acts.
Any use of the advance must be for fuel security, and unspent money stops being available after 30 June 2026.
Each advance allocation must be publicly registered, reported to Parliament, and reviewed each year by the national audit office.

Show source excerpts

The Fuel Security Appropriation Bills propose annual appropriations for fuel security response measures and related purposes that need funding in the remaining three months of the current financial year up to 30 June 2026, at which time the 2026‑27 Budget Appropriation Acts are expected to be in place. These Bills are necessary due to the potential need for the Government to respond to the impact of elevated fuel prices and supply constraints on particular sectors of the Australian economy. These Bills are in addition to the:
Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026 explanatory memorandum
The Bill provides for the appropriation of an Advance to the Finance Minister (AFM) for urgent and unforeseen expenditure relating to fuel security response measures and related purposes. There are no additional appropriations for 2025-26 contained in Schedule 2 to the Bill.
Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026 explanatory memorandum
A $2 billion quantum is set across the Fuel Security Appropriation Bills for future unforeseen and unavoidable fuel security response and related expenditures. The AFM is split in the usual 40:60 proportions between the two Bills ($800 million in Bill No. 1 and $1,200 million in Bill No. 2). The AFM under the Bill does not limit and is in addition to the AFM provision for the current financial year which is included in the 2025-26 Appropriation Acts ($400 million in Act No. 1 and $600 million in Act No. 2).
Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026 explanatory memorandum
If the amount allocated from the AFM is not fully spent by 30 June 2026, any remaining balance will cease to be available to an entity on 1 July 2026.
Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026 explanatory memorandum
Allocations from the AFM under the Bill will be subject to the same strong accountability and transparency arrangements that applied to the emergency AFM allocations during the COVID-19 pandemic, including:
Appropriation (Fuel Security Response) Bill (No. 2) 2025-2026 explanatory memorandum

Context

Broader context for this bill

13 Mar 2026

Fuel supply pressure becomes a public crisis

Australian Financial Review reporting linked the fuel reserve debate to fuel security worries, Middle East disruption and domestic supply pressure.
Australian Financial Review ↗
30 Mar 2026

Iran war drives high fuel prices and localised shortages

The second reading speech said the Iran war was disrupting global fuel supply chains, with high oil prices reaching bowsers and localised shortages especially in regional, rural and remote areas.
Second reading speech ↗
30 Mar 2026

Government introduces fuel security appropriation bills

The government introduced paired bills to create a $2 billion Advance to the Finance Minister for urgent, unforeseen fuel security response spending not covered by existing funding.
Second reading speech ↗
01 Apr 2026

Parliament passes the bill

Both houses passed the No. 2 bill in the same form, completing parliamentary passage for the non-ordinary annual services part of the fuel security funding package.
Parliamentary timeline ↗
02 Apr 2026

Fuel excise relief takes effect

Official implementation material said temporary relief cut fuel excise from 52.6 to 20.6 cents a litre and reduced the heavy vehicle road user charge to zero.
Department of Infrastructure ↗

Legislative route

How did it move through Parliament?

Introduced 30 Mar 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 30 Mar 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 30 Mar 2026

The bill reached this recorded parliamentary step.

House second reading agreed 30 Mar 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 30 Mar 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 01 Apr 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 01 Apr 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 01 Apr 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 01 Apr 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 01 Apr 2026

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 01 Apr 2026

The Governor-General gave Royal Assent, turning the bill into an Act.

Key criticism

The main case against this bill

No party represented in the debate opposed the bill, but several treated it as incomplete crisis management.

Only a short-term patch

Critics warned the bill could help secure urgent imports but would not by itself build the domestic fuel storage, production or resilience needed for future shocks.

Raised by Darren Chester, Angus Taylor, Dan Tehan and Michelle Landry for the Coalition Source ↗

Government acted too late

Opposition speakers argued the need for emergency import support showed poor preparation and delayed action on fuel supply and prices during the crisis.

Raised by Angus Taylor, Dan Tehan, Darren Chester and Michelle Landry for the Coalition Source ↗

Push for a 90-day fuel reserve

A defeated Senate amendment would have called for Defence to spend $500 million a year from its existing budget on domestic fuel storage until Australia reached a minimum 90-day in-country reserve.

Raised by Jacqui Lambie Network Source ↗

Further sources

parlinfo.aph.gov.au ↗ openaustralia.org.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

30 Mar 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

01 Apr 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.

Senate

Defeated

90-day domestic fuel reserve amendment defeated

The amendment would have called on the government to direct the Department of Defence to spend $500 million per year of its existing budget, in the absence of an additional appropriation, to develop and maintain domestic fuel storage infrastructure until Australia achieves a minimum 90 day in-country fuel reserve.

Defeated on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Hansard record ↗

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Jim Chalmers

Australian Labor Party • MP 30 Mar 2026

Chalmers supports the bill and says it should pass because it gives the government urgent temporary funding flexibility to respond to fuel supply disruptions and shortages caused by the war in the Middle East.

Read in Hansard ↗

Darren Chester

National Party • MP 30 Mar 2026

Chester says the coalition will support this fuel security bill because it is a practical crisis measure to help keep fuel and fertiliser supply chains moving, though he argues it is only a limited response and strongly criticises the government for mishandling the fuel crisis.

Read in Hansard ↗

Basem Abdo

Australian Labor Party • MP 30 Mar 2026

Basem Abdo supports the bill and wants it passed, arguing it gives the government practical, targeted powers to keep fuel flowing, steady prices and protect households, businesses and regional communities during a global fuel disruption.

Read in Hansard ↗

Angus Taylor

Liberal Party • MP 30 Mar 2026

Taylor says the opposition will support the bill's fuel security measures, arguing they are a useful emergency step to get fuel onshore.

Read in Hansard ↗

All speeches by bloc

Basem Abdo ★ Basem Abdo supports the bill and wants it passed, arguing it gives the government practical, targeted powers to keep fuel flowing, steady prices and protect households, businesses and regional communities during a global fuel disruption.

“In communities like mine, where people rely on transport to work, where businesses depend on supply chains and where logistics underpins local jobs, this bill matters. It is practical reform, it is forward looking and it is exactly what this moment demands. We cannot wait for crisis to arrive before we act. We must be ready, we must be resilient and we must strengthen Australia's sovereign capability in the things and areas that matter most. I commend the bill to the House.”
Australian Labor Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗
Madeleine King Madeleine King supports the bill and wants it passed because it strengthens Australia's fuel security and critical minerals reserve, which she says will improve economic resilience, national security and supply chain reliability.

“I support all aspects of the strategic reserve within this bill. It ensures our fuel security as well as security of other strategic materials and will ensure our security of strategic critical minerals and rare earths. Australia, under the leadership of this government, is stepping up to take responsibility to lead globally on critical minerals and rare earth elements, and I commend the bill to the House.”
Australian Labor Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗
Jim Chalmers ★ Chalmers supports the bill and says it should pass because it gives the government urgent temporary funding flexibility to respond to fuel supply disruptions and shortages caused by the war in the Middle East.

“These bills are an important part of that.”
Australian Labor Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗

Darren Chester ★ Chester says the coalition will support this fuel security bill because it is a practical crisis measure to help keep fuel and fertiliser supply chains moving, though he argues it is only a limited response and strongly criticises the government for mishandling the fuel crisis.

“When fuel costs rise, that flows straight through to our groceries, to our freight, to our farmers and to our small businesses. At a time when Australian living standards are going backwards, this is applying enormous pressure on families as they try to manage their household budgets. The coalition will always support practical, targeted action that helps secure supply and stabilises critical supply chains. This bill is designed to do that. It allows Export Finance Australia to step in during extraordinary disruptions, supporting the financing, insurance and logistics needed to secure essential imports like fuel and fertiliser. We believe it's a sensible objective. In a crisis, the government should be prepared to act quickly to keep supply chains moving and to ensure essential goods can reach Australians quickly. That is why we have supported the bill. The member for Wannon will be moving amendments to it at a later time in the House today.”
National Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗
Angus Taylor ★ Taylor says the opposition will support the bill's fuel security measures, arguing they are a useful emergency step to get fuel onshore.

“We need to dig and drill in this country. That's how we will make sure Australians are able to get what they need. It is also how we will make sure we have a strong economy. You dig, you drill and you can pay down the bills that way, and that is exactly what we need to see as soon as possible. We do commend the changes being made in this bill, but we do think they should go further. We do think the government should, having made progress on one of the four focuses that I've laid out, get on with the other three.”
Liberal Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗
Dan Tehan Tehan says the opposition will support the bill because it finally takes steps to secure fuel supply during the crisis, but he argues the government acted too late and mishandled both supply and prices.

“The fact that we're here today with this rushed legislation coming through, which the opposition have been happy to support because we were given a briefing at seven o'clock last night, shows that the government is literally chasing its tail in trying to deal with this national fuel crisis. I'll give you the most classic example as to why they're doing that. We're making changes to the Export Finance and Insurance Corporation Act so that they can deal with getting oil here to Australia. Guess what they did last year? They sent a message to EFA, a statement of expectations, saying: 'You're not to touch oil. You're not to touch gas. You're not to touch coal.' And, yet, here we are today, and they've finally realised that oil's important. They had no idea that diesel powers 50 per cent of our energy in this nation—50 per cent! Fishing, farming and mining are all dependent on diesel. They had no idea about the importance of diesel and no idea about the importance of coal and gas to our nation, especially when you have something like a war taking place. The government had to be led kicking and screaming to admit there was a national crisis going on. Now, finally, they seem to be taking some measures to deal with supply. I hope they're successful, and that's why we're happy to support it.”
Liberal Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗
Michelle Landry Landry says the coalition will support the bill because it gives Export Finance Australia a practical way to secure essential fuel and fertiliser imports during the crisis.

“In that context, we are debating this bill. Let me be clear, the coalition will support it, because this bill does something practical. It allows Export Finance Australia to step in during extraordinary disruptions to help secure essential imports like fuel and fertiliser. That is a sensible measure. In a crisis, governments should be able to act quickly to support supply chains to ensure that essential goods can reach Australia. We will always support practical steps that help keep the country moving, but we also need to be honest about what this bill is and what it is not. This bill is not a silver bullet. It does not get fuel to empty service stations today. It does not bring down prices at the bowsers tomorrow. And it does not fix the underlying problem that left Australia exposed in the first place.”
National Party • MP • 30 Mar 2026
Read the full speech in Hansard ↗

Record

Full record

The final law

Key dates and decisions

All parliamentary events