AAA calls for review of fuel excise slug

The Australian Automotive Association (AAA) has called for the Federal Government to inform motorists of the excise they're paying every time they fill up at the bowser.

According to the AAA, a report by toll-road operator Transurban has highlighted the fact many motorists are unaware of the common costs associated with owning and running a vehicle – including the fuel excise levy.

AAA Chief Executive Michael Bradley said "The Transurban study again demonstrates that the majority of Australian motorists are unaware they pay around 40 cents in excise on every litre of fuel. That's why the AAA is calling for the Australian Government to disclose the amount of excise paid on fuel dockets in the same way GST is currently displayed."

The report emphasises that very little of what motorists pay in excise actually goes towards transport infrastructure. Furthermore, as vehicles become more economical, funds available to the government will decrease significantly.

"We already have a massive shortfall in transport infrastructure funding and this will only worsen as the amount of fuel excise collected drops, due to improved vehicle efficiency and the increased use of electric vehicles," Bradley said.

Between 2013 and 2014, road related taxes and charges reached approximately $28 billion. However, over the last couple of decades, as little as 47 per cent of excise funds from motorists filling up has found its way into the federal land transport infrastructure budget. Worse still, by 2020 this figure is set to be as low as 27 per cent.

Representing the interests of motorists around the nation, the AAA is on the warpath currently, just last month having denounced any costs imposed on motorists for reducing CO2 emissions.

Bradley added: "The AAA's Transport Affordability Index shows the average Australian household is already paying around $17,000 a year for transport. It's important therefore that governments find new and fairer ways to ensure we can fund the transport systems Australia will need for the 21st century. A great place to start is by ensuring Australians understand exactly how much they already pay in fuel excise."

The AAA is also suggesting that a two-stage reform on the funding made available to the federal government needs to happen soon. There should be a fixed amount of funds solely assigned to land transport projects and there needs to be an examination, development and implementation of options for land transport market reform, the AAA states.