Short-term relief, not a plan
Several supportive speakers warned the one-month extension was a stopgap that would not fix underlying affordability, fuel security or transport pressures once the discount ended.
This bill became law on Jun 30th, 2026.
Budget, tax & economy
Petrol, diesel and similar fuels have lower exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. and import-equivalent dutiesA matching Commonwealth charge on imported fuel, set so imported petrol and diesel face a similar tax to fuel made in Australia. from 1 July 2026 until the day before the August 2026 indexation dayThe day in August 2026 when the temporary fuel duty cut ends and rates return to what they would have been after inflation indexation..
Recent fuel price increases from the conflict in the Middle East exposed households and businesses to higher petrol and diesel costs. The bill extends a temporary fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. cut from 1 July 2026, reducing exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. and import-equivalent dutiesA matching Commonwealth charge on imported fuel, set so imported petrol and diesel face a similar tax to fuel made in Australia. by 30.4% of the full rate until the August 2026 indexation dayThe day in August 2026 when the temporary fuel duty cut ends and rates return to what they would have been after inflation indexation..
Fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. was already on a temporary 60.9 per cent cut from 1 April to 30 June 2026, but fuel price rises linked to the Middle East conflict and uncertainty around the Strait of Hormuz kept pressure on household and business transport costs. The government responded by tapering rather than ending the relief, with the Act applying a smaller 30.4 per cent cut from 1 July 2026 before fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. rates were to return at the August 2026 indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026. point.
The main criticism was that the bill gives only brief, partial relief while leaving bigger fuel-price, fuel-security and transport-cost problems unresolved. Concerns came from supportive Coalition and crossbench speakers, while Greens-aligned amendments focused on fossil fuel tax creditsCredits that can reduce or refund fuel tax for eligible business fuel use, which some speakers wanted capped or removed for large fossil fuel businesses. and One Nation sought a longer suspension of fuel excise indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026..
The government introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 30 June 2026
Final passage
Passed without a counted vote
4 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
8 days
From introduction to the latest recorded parliamentary step
Meaning
Petrol, diesel and similar fuels have lower exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. and import-equivalent dutiesA matching Commonwealth charge on imported fuel, set so imported petrol and diesel face a similar tax to fuel made in Australia. from 1 July 2026 until the day before the August 2026 indexation dayThe day in August 2026 when the temporary fuel duty cut ends and rates return to what they would have been after inflation indexation..
The temporary cut sets covered fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. rates at 69.6% of the full rate, which is about 16 cents per litre less for petrol and diesel.
Fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. rates automatically return on the August 2026 adjustment dayThe day in August 2026 when the temporary fuel duty cut ends and rates return to what they would have been after inflation indexation. to the rates that would have applied, including CPI indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026., without the temporary cut.
The fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. cut and related heavy vehicle road user chargeA charge paid through fuel arrangements by operators of heavy vehicles, which was also reduced alongside the fuel excise relief. reduction are expected to cost the budget about $400 million over the forward estimatesThe budget period covering the current financial year and the next few years, used here to estimate the measure's cost at about $400 million..
The Bill amends the Excise Tariff Act and the Customs Tariff Act to continue for a limited period the temporary reduction in the excise duty rates and excise-equivalent customs duty rates for fuels, including petrol and diesel and similar petroleum-based products.Treasury Laws Amendment (Fuel Excise Relief No. 2) explanatory memorandum
(1) Despite any other provision of this Act, a fuel duty rate on a day in a rate reduction period is a rate equal to 69.6% of the fuel duty rate that would have applied on that day apart from this section (including because of the operation of section 19).Treasury Laws Amendment (Fuel Excise Relief No. 2) as-passed bill text
(3A) This Act has effect as if, on the August adjustment day, each fuel duty rate is a rate equal to the fuel duty rate that would have applied on that day apart from subsection (1) (including because of the operation of section 19).Treasury Laws Amendment (Fuel Excise Relief No. 2) as-passed bill text
The Bill, combined with an equivalent reduction in the heavy vehicle road user charge of 16 cents per litre, is estimated to decrease the underlying cash balance by approximately $400 million over the forward estimates period.Treasury Laws Amendment (Fuel Excise Relief No. 2) explanatory memorandum
Context
Fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. was already on a temporary 60.9 per cent cut from 1 April to 30 June 2026, but fuel price rises linked to the Middle East conflict and uncertainty around the Strait of Hormuz kept pressure on household and business transport costs. The government responded by tapering rather than ending the relief, with the Act applying a smaller 30.4 per cent cut from 1 July 2026 before fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. rates were to return at the August 2026 indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026. point.
Fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. is cut for three months
Existing fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. and excise-equivalent customs dutyA matching Commonwealth charge on imported fuel, set so imported petrol and diesel face a similar tax to fuel made in Australia. rates for petrol, diesel and similar fuels were reduced by 60.9 per cent until 30 June 2026.
Treasury Laws Amendment (Fuel Excise Relief No. 2) explanatory memorandum ↗Middle East conflict keeps fuel prices under pressure
The second reading speech linked the extension to higher petrol prices, the Middle East war, and the need for the Strait of Hormuz to stay open after a United States-Iran agreement the previous week.
Hansard ↗Government says the fuel discount will shrink, not end
ABC News reported that the 32 cents per litre fuel discount was set to fall to 16 cents per litre for another month, while the heavy vehicle road user chargeA charge paid through fuel arrangements by operators of heavy vehicles, which was also reduced alongside the fuel excise relief. would rise from zero to 16 cents per litre.
ABC News ↗The government introduces the bill
The government introduced the bill to extend fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. relief for another month while tapering the level of support.
Hansard ↗Royal AssentThe final formal approval that turns a bill passed by Parliament into an Act of Parliament. makes the fuel relief extension law
Royal AssentThe final formal approval that turns a bill passed by Parliament into an Act of Parliament. allowed the temporary settings to take effect immediately after the earlier three-month fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. cut expired.
Parliamentary timeline ↗Smaller fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. cut starts
From 1 July, petrol and diesel duty rates were reduced by 30.4 per cent to $0.366 per litre, about 16 cents per litre below the full rate.
Treasury Laws Amendment (Fuel Excise Relief No. 2) explanatory memorandum ↗Fuel dutyA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. rates are expected to return to indexed levelsThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026.
The explanatory memorandumThe official document that explains what the bill does, when it starts and its expected financial impact. said the August adjustment dayThe day in August 2026 when the temporary fuel duty cut ends and rates return to what they would have been after inflation indexation. would be 3 August 2026 if the June quarter CPIThe inflation measure used to adjust fuel duty rates in February and August each year. was published as scheduled, after which rates would return to the amounts that would otherwise have applied with CPI indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026..
Treasury Laws Amendment (Fuel Excise Relief No. 2) explanatory memorandum ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
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
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
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
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final formal approval that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill gives only brief, partial relief while leaving bigger fuel-price, fuel-security and transport-cost problems unresolved. Concerns came from supportive Coalition and crossbench speakers, while Greens-aligned amendments focused on fossil fuel tax creditsCredits that can reduce or refund fuel tax for eligible business fuel use, which some speakers wanted capped or removed for large fossil fuel businesses. and One Nation sought a longer suspension of fuel excise indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026..
No party represented in the debate opposed the bill, but several sought wider or longer-term changes.
Short-term relief, not a plan
Several supportive speakers warned the one-month extension was a stopgap that would not fix underlying affordability, fuel security or transport pressures once the discount ended.
Relief may not fully reach consumers
A reservation was that the government should show clearer evidence that the exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. cut was actually passed through into lower prices for motorists, freight operators and businesses.
Fuel tax credits left untouched
Critics argued fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. relief was unfair or environmentally inconsistent while large fossil fuel extraction businesses could still receive major fuel tax creditsCredits that can reduce or refund fuel tax for eligible business fuel use, which some speakers wanted capped or removed for large fossil fuel businesses.; proposed amendments to exclude or cap those credits were defeated.
Indexation should stay suspended longer
One Nation argued the bill should not allow the effective 16 cents per litre increase and sought to permanently suspend fuel excise indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026. until a 2028 review, but the amendment was defeated.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
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 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.
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 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.
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
House
Defeated 11 to 74. Support came from Greens, One Nation, and minor parties and independents. Opposition came from Labor, Liberal, Nationals, and minor parties and independents.
The House rejected the proposed second-reading statement and then agreed to the bill's second reading, so the bill advanced without that call for a cap on large-company fuel tax creditsCredits that can reduce or refund fuel tax for eligible business fuel use, which some speakers wanted capped or removed for large fossil fuel businesses..
Senate
Defeated 5 to 38. Support came from One Nation and UAP. Opposition came from Labor, Greens, Liberal, and minor parties and independents.
The Senate rejected the proposed second-reading statement, so the bill continued without any added call to stop the scheduled increase or freeze future indexationThe automatic twice-yearly increase in fuel duty rates to keep them in line with inflation; this bill lets rates return to indexed levels in August 2026..
Defeated 11 to 31. Support came from Greens and minor parties and independents. Opposition came from Labor, Liberal, One Nation, and UAP.
The Senate rejected the proposed second-reading statement, so the bill proceeded without any Senate endorsement of removing fuel tax creditsCredits that can reduce or refund fuel tax for eligible business fuel use, which some speakers wanted capped or removed for large fossil fuel businesses. from fossil fuel extraction companies.
Defeated 11 to 32. Support came from Greens and minor parties and independents. Opposition came from Labor, Liberal, One Nation, and UAP.
The Senate rejected the amendment, so the bill was not changed to impose a statutory annual cap on fuel tax credit claims.
This list includes amendment votes, procedural votes and votes on the bill itself.
Parliamentary debate
Start here — lead voices
Jim Chalmers says Labor wants the bill passed to extend fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. relief for one more month, arguing motorists and small businesses still need cost-of-living help even though fuel prices have eased.
Read in Hansard ↗Tim Wilson says the coalition will support the bill to give motorists, freight operators and small businesses short-term fuel-cost relief, but argues it is only a temporary fix for a wider cost-of-living problem caused by the Albanese government.
Read in Hansard ↗Dai Le says she will support the bill because her community needs immediate fuel-price relief, but she argues it is only a short-term bandaid and urges the government to deliver a longer-term plan on fuel security and transport in Western Sydney.
Read in Hansard ↗Tim Ayres supports the bill and says it should pass because it extends fuel exciseA Commonwealth tax on petrol, diesel and similar fuels made in Australia; this bill temporarily lowers that tax for about one month. relief for one month to ease petrol and diesel costs while tapering support in a temporary, responsible way as prices stabilise.
Read in Hansard ↗All speeches by bloc
4 speakers · 4 support
“This Bill to extend fuel excise relief is both responsive and responsible.”Read the full speech in Hansard ↗
“This bill tells those beautiful Aussies, 'We understand the pressure, and we're taking practical action to help.' This bill extends fuel excise relief from 1 July to 2 August 2026. It means petrol and diesel excise will remain at 16c per litre, lower than it otherwise would have been during that period. Without this legislation, the original temporary fuel excise reduction would expire on 30 June and motorists would have to face the full increase immediately. Instead, this bill provides a much smoother transition into that. It tapers the support rather than ending it overnight.”Read the full speech in Hansard ↗
“This bill recognises that, although fuel prices have moderated, people are still under cost-of-living pressure. Australians didn't choose this war, but they continue to face the costs and consequences of it. That's why a more modest but still meaningful discount is the appropriate way to continue this support for a bit longer. This bill delivers that cost-of-living relief in a responsible way. It is temporary, and it is tapered. We know that economic and fuel market recovery will take time, and this extra month will help Australian motorists and businesses as this support tapers off and we return to those normal excise settings. It's also a responsible way to help manage demand at service stations across the country towards the end of this month.”Read the full speech in Hansard ↗
“We welcome the agreement between the United States and Iran to de-escalate the conflict. We are desperate for that to hold—I know the whole world is desperate for that to hold. While we're hopeful, obviously we know that it is going to take quite a while for this to bear down and for global fuel movements to recover. That's why it is critical that this legislation pass urgently. It will provide that continued certainty and support for those who need it. Extending the fuel excise by another month will make petrol and diesel around 16c per litre cheaper than normal July prices and will save Australians around $11 per tank.”Read the full speech in Hansard ↗
5 speakers · 6 contributions · 5 support
“While we're passing this legislation through the parliament to enable Australians to be able to get some relief at the petrol bowser—and, if they're involved in shipping or freight, to be able to remove some of the cost pressures—this bill doesn't relieve the much bigger problem that sits at the heart of the Albanese government. At the heart of this Albanese government is a direct assault on the aspiration and dreams of Australians, particularly those who want to back themselves to get ahead, to build a small business and to be part of building their Australian dream.”Read the full speech in Hansard ↗
“We're not going to oppose this, because we want to see relief at the bowser. We do. But the other things that Labor are doing are only going to push the price of groceries up. We want to see our trucks being able to go up and down the busy byways and freeways and little country roads, that last mile to the farm gate. We want to see people paying less at the cash register in the grocery store. That just makes for good economics. It also makes quality of life much better. At the moment, there's way too much homelessness. There are way too many people suffering because of the cost-of-living crisis brought about because of the poor economics of this Labor government.”Read the full speech in Hansard ↗
“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.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Alison Penfold on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Alison Penfold says the coalition will support the bill so Australians keep getting temporary fuel price relief, especially families, farmers and small businesses under heavy cost-of-living pressure. She argues the measure is only short-term help, not a real solution, and blames the government for broader inflation and fuel security failures that have left people unable to absorb higher prices.
“I support the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026 and will not stand in the way of Australians receiving relief at the bowser. Families, farmers, truck drivers, tradies, commuters and small businesses across Australia need the assistance. But support for this bill should not be mistaken for support for the circumstances that made it necessary, because the question before us today is not simply on why fuel prices have risen. The real question is about why Australians are finding it so difficult to absorb yet another increase in the cost of living. Why are families living week to week? Why are small businesses struggling to stay afloat? Why are farmers, transport operators, businesses and community organisations being forced to make increasingly difficult decisions? Why do so many Australians feel that, despite working harder than ever, they are somehow falling behind? Across Lyne, I hear the same message repeatedly. People are hurting and they are hurting badly. I've never seen Australians under this level of sustained economic pressure.”Read this contribution in Hansard ↗
Second reading speech
Alison Penfold says the coalition will support the bill because it gives people temporary fuel-price relief, but she argues it is only a short-term fix and that Australia needs a broader long-term fuel security and affordable energy strategy.
“The people I represent are not asking for special treatment; they are asking for common sense. They are asking for honesty. They are asking for governments that understand the pressures they face every day. They are asking for governments that plan for the future. They are asking for governments that reward aspiration. And they are asking for governments that remember regional Australia matters. This bill provides some temporary relief, and the coalition supports that, but Australians deserve more. They deserve lower inflation. They deserve stronger fuel security. They deserve affordable energy. They deserve a stronger economy. And they deserve governments willing to make the long-term decisions necessary to secure Australia's future.”Read this contribution in Hansard ↗
“We are supporting the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026 mainly because the idea of giving fuel excise relief was the coalition's. We went out, we announced it and we made sure that we put pressure on the government, and the government followed. It goes to show that, when the government follows the opposition, when the government follows the coalition, the government actually gets it right. They should do it more often because, whenever they follow their own noses on things, they get it so terribly wrong.”Read the full speech in Hansard ↗
3 speakers · 3 support
“Let me finish where I started, with my community. For too long, my community was treated as a seat that could be taken for granted. We were promised the buses, the trains and the investment. It went somewhere else. So let me be clear about what the people of Fowler want. They want the same fair go that the rest of New South Wales already enjoys, to get to work without going broke, to care for their families without counting every kilometre and to know that the country they helped build is planning for their future, not just patching over their present. I will vote for this bill and support it because my community needs the relief and I will never stand in its way, but I will keep asking the question it sent me here to ask: where is the long-term plan? The people of Fowler have fought hard for every cent of help they have ever received. They have earned more than another bandaid. They need a government that will build them something lasting, a future that is more secure, more affordable and more connected. So I will not stop pushing until my community gets it, and I will keep fighting for that longer term plan.”Read the full speech in Hansard ↗
“The lesson from recent months is clear. Temporary fuel excise relief may help households, and it might help businesses weather an energy crisis, and for this reason I do support the measured tapering the government has proposed in this bill. But long-term energy resilience will not come from emergency excise cuts. It will come from building a transport system that is less dependent on imported fuels, that is electrified, that is energy efficient and that is insulated from global geopolitical shocks. That is the broader challenge before us: not simply how we choose to respond to the current fuel price crisis but how we prepare Australia for the next one.”Read the full speech in Hansard ↗
“I support this bill because cost-of-living relief for Aussies is important, but I want the record to show this parliament has a choice about who pays fuel tax, and right now it's choosing to ask the least of those who can afford to pay the most. I urge the government to cap the fuel tax credit scheme with the same urgency it has shown in introducing this bill today.”Read the full speech in Hansard ↗
1 speaker · 1 support
“That this bill be now read a second time.”Read the full speech in Hansard ↗
Record
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.
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.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
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.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
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.
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.
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.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
AssentThe final formal approval that turns a bill passed by Parliament into an Act of Parliament.
The Governor-General gave Royal AssentThe final formal approval that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.