Too little for long-term fuel security
Critics argued the bill could help buy urgent fuel cargoes but would not build the domestic production, storage and supply-chain resilience needed to reduce future exposure to overseas shocks.
Appropriation (Fuel Security Response) Bill (No. 1) 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 high fuel prices and supply constraints before 30 June 2026.
Why was it introduced?
Elevated fuel prices and supply constraints created a potential need for urgent support to particular sectors before 30 June 2026. The bill lets the Finance MinisterThe minister who can approve spending under this bill, within the set limit and purpose. approve fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. response funding for ordinary annual government services until the 2026-27 Budget Appropriation Acts are expected to be in place.
Broader context
Australia already relied on annual appropriations and existing fuel arrangements when the Iran war disrupted global fuel supply chains, pushing up petrol and diesel prices and causing localised shortages, especially in regional, rural and remote areas. The government responded with paired fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. appropriationLegal authority for the government to spend public money for a stated purpose. bills that created a three-month, $2 billion emergency funding reserve to support urgent fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. measures until 30 June 2026, and Parliament passed this bill on 1 April 2026.
Key criticism
The main criticism was that the bill was only a short-term emergency patch and did not fix Australia’s deeper exposure to imported fuel, weak domestic production and limited storage. Coalition speakers supported the bill while arguing the government had acted too late, and the Jacqui Lambie Network unsuccessfully sought a stronger domestic fuel-reserve commitment.
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
Meaning
What does this bill do?
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The government gets a short-term funding safety net to respond to high fuel prices and supply constraints before 30 June 2026.
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This Act does not give departments set new amounts upfront; it creates a way to approve urgent fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. spending if needed.
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The Finance MinisterThe minister who can approve spending under this bill, within the set limit and purpose. can approve up to $800 million under this Act, as part of a $2 billion fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. reserve across two Acts.
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Any approved money must be for fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes., and unused amounts stop being available after 30 June 2026.
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Spending approvals must be publicly registered and reported to Parliament, with annual audit office assurance of the report.
Show source excerpts
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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. 1) 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 1 to the Bill.
Appropriation (Fuel Security Response) Bill (No. 1) 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. 1) 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. 1) 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. 1) 2025-2026 explanatory memorandum
Context
Broader context for this bill
Australia already relied on annual appropriations and existing fuel arrangements when the Iran war disrupted global fuel supply chains, pushing up petrol and diesel prices and causing localised shortages, especially in regional, rural and remote areas. The government responded with paired fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. appropriationLegal authority for the government to spend public money for a stated purpose. bills that created a three-month, $2 billion emergency funding reserve to support urgent fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. measures until 30 June 2026, and Parliament passed this bill on 1 April 2026.
- 13 Mar 2026
Fuel supply pressure becomes a public crisis
Australian Financial Review reporting linked the fuel reserve debate to worries about fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes., Middle East disruption and pressure on domestic supply.
Australian Financial Review ↗ - 28 Mar 2026
Government says it will help secure fuel imports
The Prime Minister announced new powers to underwrite fuel purchases as the government sought to secure shiploads of fuel during the supply squeeze.
Australian Financial Review ↗ - 30 Mar 2026
Iran war disruption reaches Australian fuel users
The second reading speech said the Iran war was disrupting global fuel supply chains, with high oil prices flowing through to the bowser and localised shortages in regional, rural and remote areas.
Second reading speech ↗ - 30 Mar 2026
Government introduces the fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. funding safety net
The government introduced paired appropriationLegal authority for the government to spend public money for a stated purpose. bills to create a $2 billion Advance to the Finance MinisterA mechanism that lets the Finance Minister approve urgent spending when normal funding is not enough or was not expected. for urgent, unforeseen fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. spending until the end of the financial year.
Second reading speech ↗ - 01 Apr 2026
Parliament passes the bill
Both houses passed the bill in the same form, completing parliamentary approval for the No. 1 part of the fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. reserve.
Parliamentary timeline ↗ - 21 Apr 2026
Diesel and fertiliser supply concerns continue
Australian Financial Review reporting said the government was racing to secure fertiliser and diesel ahead of a supply crunch after the bill had passed.
Australian Financial Review ↗
Legislative route
How did it move through Parliament?
House Senate
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
The main criticism was that the bill was only a short-term emergency patch and did not fix Australia’s deeper exposure to imported fuel, weak domestic production and limited storage. Coalition speakers supported the bill while arguing the government had acted too late, and the Jacqui Lambie Network unsuccessfully sought a stronger domestic fuel-reserve commitment.
No party represented in the debate opposed the bill, but several argued it did not go far enough.
Government response said to be late
Opposition speakers said the bill was necessary because the government had left Australia unprepared for the fuel crisis and moved too slowly to secure supply and manage price pressures.
Push for a 90-day domestic reserve
A Senate amendment sought to require 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, implying the bill’s temporary funding reserve was not enough.
Further sources
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.
Passed
House passed the bill
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.
Passed
Senate passed the bill
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 appropriationLegal authority for the government to spend public money for a stated purpose., to develop and maintain domestic fuel storage infrastructure until Australia achieves a minimum 90 day in-country fuel reserve.
Defeated
90-day domestic fuel reserve amendment defeated
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Jim Chalmers
Chalmers supports the bill and wants it passed because it gives the government fast access to emergency funding to respond to fuel supply disruptions and shortages caused by the war in the Middle East.
Read in Hansard ↗ Lead supporting voice Supports
Darren Chester
Chester says the coalition will support the fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. bill because it is a practical crisis measure to keep fuel and fertiliser supply chains moving, though he argues it is only a stopgap and strongly criticises the government for mishandling the crisis and failing to back domestic production and wider cost-of-living relief.
Read in Hansard ↗ Lead voice Supports
Basem Abdo
Abdo supports the bill and says it should pass because it gives the government practical, targeted powers to secure fuel supplies early, stabilise prices and protect communities and businesses during a global fuel disruption.
Read in Hansard ↗ Lead voice Supports
Angus Taylor
Taylor says the opposition will support the bill because it helps bring fuel into Australia during the crisis, but he argues the government acted too slowly and should go further to strengthen fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes..
Read in Hansard ↗All speeches by bloc
Labor
3 speakers · 3 support
Labor
3 speakers · 3 support
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Basem Abdo ★ Abdo supports the bill and says it should pass because it gives the government practical, targeted powers to secure fuel supplies early, stabilise prices and protect communities and businesses 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.”
Read the full speech in Hansard ↗ -
Madeleine King Madeleine King supports the bill and wants it passed because it strengthens Australia’s fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. and creates a strategic reserve for critical minerals and other vital supplies.
“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.”
Read the full speech in Hansard ↗ -
Jim Chalmers ★ Chalmers supports the bill and wants it passed because it gives the government fast access to emergency funding to respond to fuel supply disruptions and shortages caused by the war in the Middle East.
“The bills I am introducing today are about giving government the flexibility to continue addressing these challenges in a timely way over the coming months.”
Read the full speech in Hansard ↗
Coalition
4 speakers · 4 support
Coalition
4 speakers · 4 support
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Darren Chester ★ Chester says the coalition will support the fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. bill because it is a practical crisis measure to keep fuel and fertiliser supply chains moving, though he argues it is only a stopgap and strongly criticises the government for mishandling the crisis and failing to back domestic production and wider cost-of-living relief.
“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.”
Read the full speech in Hansard ↗ -
Angus Taylor ★ Taylor says the opposition will support the bill because it helps bring fuel into Australia during the crisis, but he argues the government acted too slowly and should go further to strengthen fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes..
“There's a second part of moving the fuel, which is to make sure fuel from offshore gets to our country. This bill is playing a role in supporting that. We do support that part of what this bill is doing. I think this is an important initiative, and we will absolutely support that, but it has taken too long. They were moving the fuel. They were moving all of the petrol, from one of our two remaining refineries, offshore. They were exporting it. They needed to move that fuel not off to Asia or wherever it was going but to regional communities and those 600 servos that didn't have fuel.”
Read the full speech in Hansard ↗ -
Dan Tehan Tehan says the opposition will support the fuel securityThe ability to keep fuel available and affordable enough for Australia, especially during supply problems or price spikes. bill because it finally takes steps to secure supply during the fuel crisis, but he argues the government acted far too late and mishandled both fuel 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.”
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 fuel and fertiliser imports during the crisis, though she argues it is only a short-term measure and criticises Labor for leaving Australia unprepared and too reliant on overseas supply.
“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.”
Read the full speech in Hansard ↗
Record
Full record
- Act title
- Appropriation (Fuel Security Response) Act (No. 1) 2025-2026
- Act number
- Act No. 23, 2026
- Became law
- 01 Apr 2026
- Takes effect
- The whole of this Act 01 Apr 2026
- Registered
- 02 Apr 2026
- Administered by
- Department of Finance
- Final law metadata was collected from the APH progress table; commencement rows were parsed from the bill text.
- Status
- Act -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 30 Mar 2026
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 30 Mar 2026
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 30 Mar 2026
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 30 Mar 2026
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 30 Mar 2026
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 01 Apr 2026
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 01 Apr 2026
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 01 Apr 2026
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 01 Apr 2026
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 01 Apr 2026
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
- 01 Apr 2026
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.