Good evening.
It’s a fact of life for those who live in rural and regional areas that petrol prices are generally higher for them than they are for those who live in the city.
One of the important decisions we announced in the budget was a new grant scheme to help keep the price of petrol down in the country.
From next month, the Government will pay country service station owners a special grant for their fuel sales with a higher grant for sales in remote areas. We’ll also ensure that the benefit of this scheme worth five hundred million dollars will be passed on to customers.
The introduction of this scheme delivers upon an undertaking we make to country Australia. But under the new system the pump price of petrol and diesel need not rise as a result of the GST.
One of the great benefits of the new tax system is lower transport costs to regional areas. The cost of diesel excise for heavy country transport will fall by twenty-four cents a litre and this will help reduce the cost of transporting goods to and from the country. In addition the cost of petrol and diesel used in farming and other businesses will be cut by about seven cents a litre and excise will be removed altogether from the rail sector. You can expect that these transport savings will be passed on in lower prices for every day goods and will enable our exports to be more competitive. It’s in Australia’s interest that we have reduced fuel prices for regional areas, another reason why the new tax system is good for the nation.
Good night.