Drivers to wait until after budget for fuel relief call

Any decision to halve fuel duty will come after the upcoming federal budget as Labor leaves the door open to changes to investment properties and family trusts.

The three-month fuel tax cut took effect in early April and caused gasoline and diesel prices to fall by 26.3 cents per litre, as the federal government responded to rising prices caused by the US-led war against Iran.

Deputy Finance Daniel Mulino said he expects to be called on any extensions after the May 12 budget is distributed.

“We really need to see how overseas conflicts develop, how oil prices develop,” he told Sky News on Sunday.

“It does what it’s intended to do. It’s not a magic bullet, but it provides financial support to people.”

Chancellor of the Exchequer Jim Chalmers is expected to introduce changes to capital gains tax relief and negative adjustments to the budget as the government positions itself to tackle intergenerational equality and growing support for far-right political parties.

Dr Mulino did not rule out other accusations when asked about tax reform in the budget.

“I won’t reveal specific things that may or may not be in the budget, but I think the Australian public will hope that we will look at tax in the context of these broader themes of intergenerational fairness and productivity,” he said.

Coalition MPs have largely opposed changes to capital gains tax, arguing the change could reduce the supply of new homes.

National leader Matt Canavan said he wanted to see details of Labor’s policies but did not support “extra tax increases”.

Opposition finance spokeswoman Claire Chandler also voiced her opposition to any changes that would lead to higher taxes.

“My default reaction as a Liberal is to say that we shouldn’t be supporting more taxes for something we want to see more of, and that we do indeed want to see more housing,” he told Sky News.