Excise on petrol, and excise equivalent customs duty, is budgeted to raise $6.2 billion in 2018-19, and $26.5 billion over the forward estimates. It is our seventh largest tax.
Petrol excise represents 1.3% of all Commonwealth revenue in 2018-19, and 0.3% of GDP.
Petrol excise is currently (August 2018) levied at the rate of 41.2 cents per litre for standard fuels, and 39.05 cents per litre for blended fuels containing ethanol. An equivalent customs duty is levied on imports. The excise is indexed twice yearly in line with movements in the consumer price index. GST of 10% is applied on top of the fuel excise. The ethanol component of the fuel is subject to an additional indexation factor which is designed to bring ethanol to a more comparable, but still preferential rate compared to unblended petrol.
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The model accounts for the share of petrol sold as an ethanol blend, based on current market share.
The model takes account of the impact of changes to Petrol Excise on GST collections, but assumes fuel volumes remain unchanged. Other second round effects, such as differing excise rates between different fuel types, or changes in the popularity of different fuel types (petrol, diesel, electric, etc) are not modelled.