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Drivers will pay $10 more to fill a 65-litre tank of fuel when tax relief designed to combat surging fuel prices begins to wind back.
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The move comes after a volley of dire warnings grocery and transport costs would spike and holiday-makers would stay home if the discounted fuel excise returned in full.
The tax will begin to creep back onto prices at the servo from July 1.
On the same date, truckers will also have to fork out 16 cents per litre on top of the returning excise when the heavy vehicle road user charge makes a partial return.
That translates to $64 more for a 400-litre fuel tank.
Truckers will have to pay more when the heavy vehicle road user charge makes a partial return. (James Ross/AAP PHOTOS)Previously set to expire at the end of June, the tax breaks are now being wiped away in increments as part of a plan hatched by the federal government and endorsed by state premiers at a national cabinet meeting on Monday.
The 32 cents per litre discount kicked in on April 1 after the war in Iran and closure of the Strait of Hormuz sent fuel prices soaring.
Petrol prices in capital cities are about $1 a litre lower than they were after the war began on February 28, with diesel now costing about 20c more per litre than when missiles started firing over the Gulf.
Bringing the excise back piecemeal would extend cost-of-living relief and avoid a run on fuel supply, the federal government said on Sunday.
Treasurer Jim Chalmers has brought in legislation to extend the fuel excise cut. (Lukas Coch/AAP PHOTOS)“Australians didn’t choose this war, but they continue to face the costs and consequences of it”, Treasurer Jim Chalmers said on Monday as he introduced the legislation to extend the excise cut.
“This cost-of-living relief … is temporary and it is tapered.”
States will keep reaching into their GST pockets for 5.7 cents of the now-16 cents a litre discount – also agreed to at Monday’s national cabinet meeting.
It comes as farmers and miners push back against calls to cap or scrap the fuel tax credit, which refunds the fuel excise for businesses operating heavy vehicles.
The states have agreed to keep subsiding the excise cuts to help make fuel cheaper. (Flavio Brancaleone/AAP PHOTOS)The groups argue they should keep receiving the refund because they don’t drive on roads funded by revenue from the fuel excise.
But resources magnate Andrew Forrest called the scheme “a longstanding joke” and said the rebate should be capped at $50 million per business per year.
Fuel tax credits are projected to cost $10.7 billion in the 12 months to July 2027, according to budget papers.
“They represent their own views as a company”, Minerals Council of Australia chief executive Tania Constable said on Monday, referring to Mr Forrest’s company Fortescue.
“We’re in a race for minerals across the world, everybody is hot on our heels.”
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Lionel Messi and World Cup holders Argentina face Austria in Dallas on Monday with the Argentine great needing one more goal to rewrite the record books.
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Messi, who turns 39 on Wednesday, equalled Miroslav Klose’s all-time mark of 16 World Cup goals when scoring a hat-trick in the 3-0 opening win over Algeria.
The Argentina captain was tearful after his first goal, and it later emerged that his father is recovering from an unspecified health issue.
Despite his personal travails and a troubled build-up because of a hamstring injury, Messi’s mere presence appears to inspire his teammates.
“If anyone thought this group was better off without Leo, today it became clear that Leo is the most important of them all,” said midfielder Alexis Mac Allister after the win against Algeria.
Argentina can qualify for the next round with a victory and would be assured of finishing top of Group J if Jordan fail to beat Algeria later on Monday.
Another player chasing the all-time World Cup scoring record, Kylian Mbappe, will play his 100th game for France when they meet Iraq in Philadelphia.
“There is nothing bigger — one hundred is a historic figure, and to have the chance to reach that tally here at a World Cup means it will be a special match for me,” Mbappe told reporters on Sunday.
Mbappe, 27, is tied with West Germany legend Gerd Mueller on 14 goals after he netted twice in France’s opening 3-1 win against Senegal in Group I.
France, who were beaten by Argentina on penalties in the last final in 2022, will expect to brush aside the Iraqis to guarantee a ticket to the knockout phase.
Norway and their marksman Erling Haaland, who scored twice against Iraq in a 4-1 opening win, will also be guaranteed of going through from Group I if they beat Senegal in New Jersey and France defeat Iraq.
In Sunday’s action, Spain got their campaign back on track with a 4-0 thrashing of Saudi Arabia and debutants Cape Verde conjured another memorable performance to snatch a 2-2 draw with Uruguay.
European champions Spain were frustrated in a 0-0 draw with World cup debutants Cape Verde in their opening game, sparking criticism at home.
But against the Saudis, Barcelona starlet Lamine Yamal opened the scoring as he made his first start in two months since recovering from a hamstring problem.
Mikel Oyarzabal added two more, before a Hassan al-Tambakti own goal.
Spain coach Luis De la Fuente said his squad had been fuelled by the criticism of their opening performance.
“When someone questions your work, it is only human that anyone with courage and pride reacts to prove people wrong,” said De la Fuente.
The win put Spain top of Group H with four points after two matches.
Cape Verde grabbed another point in an entertaining draw with Uruguay in Miami.
Their coach Bubista said his team were now dreaming of a place in the knockout rounds — a scenario that would have been unthinkable before the tournament.
“We want to show the entire world that we are in the condition to fight for qualification, and I think that that’s what we showed today in today’s match,” Bubista said.
Belgium are still looking for their first win after being held to a 0-0 draw by Iran in Group G.
The Red Devils, who also drew with Egypt in their opening game, finished the game in Los Angeles with 10 men and struggled to break down a resolute Iranian side.
The Egyptians moved to the top of the group on Sunday after coming from behind to claim the first World Cup victory in the country’s history, 3-1 win over New Zealand.
Mohamed Salah, Mostafa Zico and Trezeguet scored Egypt’s goals after Finn Surman had given New Zealand the lead.
“It’s incredible, I don’t know how to express it in words,” former Liverpool star Salah said of the historic first win.
“It’s a great achievement for all the players and the subs, and hopefully we can make history and qualify first.”