New relief for households being considered as Albanese government warns of ‘long tail’ from Iran war | Australian politics
As peace talks continue amid a fragile ceasefire between the United States and Iran, the Albanian government is considering more aid for struggling households and businesses in next month’s federal budget.
Infrastructure minister Catherine King said the success of these talks was the “best chance” of reducing fuel prices. But he warned that the crisis would create a “long tail” even if the Strait of Hormuz, still closed by Iran and choking global oil supplies, was reopened soon.
King said Australia’s fuel excise duty had been halved until the end of June and heavy vehicle road user charges had been suspended, but the government was looking at how events developed in the coming weeks to see whether more aid could be included in the May budget.
“Whether additional measures are needed for homes and businesses, those are all things we’re considering as part of the budget process,” King told ABC’s Insiders on Sunday. he said.
“We are very hopeful about a ceasefire, but we are also realistic about it. This is a complex geopolitical area and it is not an easy area at all.” [a] for a quick and easy solution.
“So we have to be prepared for this and be understanding. [of] What does this mean for businesses and our farming communities? Ensuring we continue to transport goods and services and provide services to people in communities far and wide.”
Finance Minister Jim Chalmers told a pub event in the election campaign in Queensland that the global energy shock and its flow on effects were on the government’s agenda ahead of the budget.
“The pressure on people will not disappear as soon as a ceasefire is reached or the Strait of Hormuz is fully opened,” he said.
“Even after the drones stop, it will take some time to get the global economic show back on track, and that’s very important for us as we put together a budget.”
Chalmers said the May 12 package will focus on fuel security, supply chain resilience and economic reform.
He said the budget would balance “the pressures of the here and now with our intergenerational obligations to real people in real communities.”
It comes as the government prepares to launch a new TV, digital and billboard campaign on Monday to encourage people to minimize fuel use.
The “Every little bit helps” campaign is pitched as “a practical guide to managing fuel supply chain pressures caused by conflict in the Middle East.”
But shadow defense secretary James Paterson criticized the campaign, which will reportedly cost around $20 million, as “political propaganda”.
“Frankly, I don’t think Australians want to be lectured through taxpayer-funded political propaganda about driving less,” Paterson told Sky News on Sunday.
“This is very clearly about their political interests, not about solving the problem.”
Focus on increasing renewable options
A successful ceasefire between the United States and Iran could result in Iran and Oman charging up to US$2 million ($2.8 million) for a ship to pass through the strait; King said the move would be “very challenging” for economies.
Although Australia has little control over what happens in the negotiating rooms in Islamabad, King said the government would focus on increasing renewable fuels and electrification pathways, and harshly criticized National Party leader Matt Canavan for proposing more fossil fuel use that “the world has given up on”.
“We have an incredible resource in this country that many other countries do not have. We are a safe, stable democracy.” [with] “This country has the capacity to produce renewable energy,” he said.
“It’s crazy that we basically grow canola here, then ship it overseas, turn it into sustainable aviation fuel, and then buy it back. To us, we should actually have that low-carbon liquid…renewable diesel, we should be able to produce it here.”
“We can’t rely on the rest of the world for our energy security. We need to be able to produce energy here and then use it here. Electrification is a great way to go, too.”
Global events have put further pressure on the government’s upcoming budget as Treasurer Jim Chalmers juggles the country’s rising inflation, stagnant productivity and pressure on the cost of living.
There is debate about whether tax breaks for electric vehicle (EV) owners should continue; The plan is estimated to increase by 10 times the original four-year budget estimates to $5.1 billion. Reported by the Australian Financial Review.
King said the tax break had done a “good job” of increasing the affordability of electric vehicles, but he wouldn’t rule out whether it would be rolled back.
EV users do not pay fuel consumption tax, and governments are considering introducing road user charges to make up for missed revenue as their market share increases. King said his department was modeling the effects but there was currently “no clear path” for it to pass parliament.
“We’re trying to encourage electric vehicle use as much as possible – we don’t want to discourage it in any way. So there’s obviously a balance to be struck here with both the fringe benefit tax and the potential for charging road users, but we’re trying to get through that,” he said.
