Treasurer Jim Chalmers has warned fuel retailers they face penalties of up to $100 million if they use the end of the federal government’s temporary fuel excise relief to impose unjustified price increases, as motorists begin paying the full fuel excise again from Monday.
The government has asked the Australian Competition and Consumer Commission to step up monitoring of petrol prices after the temporary discounts to the fuel excise and heavy vehicle road user charge expired at the end of July.
Speaking on ABC Radio National on Monday morning, Dr Chalmers said fuel companies could not use the return to normal excise settings as “cover for treating motorists as mugs”.
“We’ve substantially increased the penalties for servos or suppliers who are caught, you know, behaving in a false or misleading fashion or engaging in anti-competitive practices,” he said. “The ACCC has the powers that they need to fine servos and suppliers up to $100 million per offence.”
He said fuel retailers were “on notice”, adding that the regulator would be “watching them like a hawk”.
The Treasurer defended the government’s decision not to extend the excise relief beyond July despite recent increases in fuel prices linked to renewed uncertainty in the Middle East.
He said petrol prices in Sydney, Melbourne and Brisbane remained well below the levels recorded when the temporary measure was introduced at the end of March.
Treasurer Jim Chalmers has defended the federal government’s five per cent deposit scheme after reports that a couple earning a combined $674,000 had used it to buy a home. He said even Australians on relatively high incomes were struggling to enter the property market in some parts of the country, arguing the scheme helps more people “get a toehold in the market”
“Petrol prices were in the 250s at the end of March in those major markets, now in the 190s,” he said. “Prices have come up a bit, but they are substantially lower than when we first introduced this excise relief.”
Dr Chalmers said the measure had eased cost-of-living pressures but was always intended to be temporary.
“It was never intended to be permanent. We extended it and tapered it for another month, and we made it very clear that it was coming off,” he said. “It’s done a really important job, but we can’t afford to continue it forever.”
Asked whether the government would consider restoring the discount if fuel prices rose further, Dr Chalmers said there were no plans to do so.
“We keep all of our policies under review, particularly when there’s this much uncertainty in the world, but it’s not our intention to bring it back,” he said, adding that an end to the conflict in the Middle East “can’t come soon enough” from both an economic perspective and for Australian motorists.
The Treasurer also defended ending the discount on the heavy vehicle road user charge, despite concerns higher transport costs could flow through to grocery prices.
“We’ve seen that relief that we’ve provided over the last four months as going hand in hand with the relief that’s been provided in the petrol market as well,” he said. “Petrol and diesel, we did both of those things together for cars and for heavy vehicles together. And they’ve come off together for good reason.”
Turning to housing, Dr Chalmers said recent falls in national dwelling prices were consistent with the government’s expectation that price growth would moderate over coming years.
Property data released by Cotality showed national house prices fell 0.7 per cent in July, with declines recorded in Brisbane and Adelaide after strong growth in those markets.
Dr Chalmers said several factors were influencing the market, including earlier interest rate movements, higher fuel costs, reduced consumer confidence linked to the conflict in the Middle East and changes announced in the federal budget.
He noted that housing markets had experienced periods of falling prices several times over the past two decades, including during the 2022 interest rate hiking cycle and between 2017 and 2019.
“Housing is a long-term investment,” he said. “People don’t make investments in housing from day to day or week to week, month to month.”
Questioned about reports that a couple earning a combined $674,000 had accessed the federal government’s five per cent deposit scheme, Dr Chalmers said he had not read the report but defended the policy.
“There are some markets around the country, where people, even on relatively good incomes, have found it difficult to get a toehold in the market,” he said.
He said the deposit guarantee scheme formed part of a wider housing strategy that included increasing supply and tax reforms designed to make home ownership more accessible.
Dr Chalmers declined to comment on assault charges against Labor MP Luke Gosling, saying only that “there’s a legal process underway and there are good reasons not to comment on it any further.”
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