1 July, 2012

Queensland’s peak motoring body has reminded Queensland motorists that fuel for private cars is exempt from the carbon tax that comes into effect today.

RACQ spokesman Michael Roth said extensive lobbying by the RACQ and other motoring clubs around Australia meant drivers nationwide would be spared the carbon price on fuel.

“There has been some speculation recently that the carbon price will hit motorists from today but the exemption, announced last year, means families, tradies and small business won’t be hit with a fuel price increase,” Mr Roth said.

“The exemption covers all types of fuel for motorists, including petrol, diesel and LPG. Heavy vehicle fuel use will also be exempt for two years.

“Motorists already pay 38 cents per litre excise and GST to the Federal Government on every litre of fuel we buy. Until the Federal Government increases road funding to match the revenue they already get from motorists, we see no rationale for them to impose or increase any other motoring taxes.”

Without the exemption, the carbon price would have added about six cents a litre to the cost of unleaded petrol.

“This exemption will save the average Queensland motorist about $100 every year,” Mr Roth said.

“Major off-road fuel users such as mining companies will have to pay the carbon price on their fuel. This is appropriate because they are exempt from the 38cpl fuel excise that motorists pay. A carbon price will also be applied to rail transport.”

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