Media Release

KAP Leader and Federal Member for Kennedy Bob Katter today spoke in Parliament about the Excise Tariff Amendment (Fuel Indexation) Bill 2014 which will reinstate the indexation of fuel with CPI twice a year; and with the proceeds from the revenue to be spent on roads.

Mr Katter believes the Government is ‘double dipping’ and it is unfair for the taxpayer to be taxed twice to fill up the tank.

“The Government is currently getting taxed 38.1 cents a litre, as well as the ten per cent GST imposed on the $1.54 a litre that the taxpayers are currently paying at the bowser.

"To increase this with the CPI twice a year will see the taxpayer pay upwards of $3 a litre for fuel in less than five years,” Mr Katter said.

Mr Katter has pointed out the negative consequences the reintroduction of the indexation of the fuel excise will have on non-metropolitan Australia.

“The cost of living for people who do not live in metropolitan areas is very dependent on petrol.

"If you are a haul-out operator, like a sugar mill, your income depends on the cost of petrol. If you are a semi-driver, a cane harvester, a roo shooter, a stockman or a railway worker who has to drive great distances to get to your job, they all rely on the cost of oil.”

Mr Katter pointed out the long distances people in remote and rural areas have to travel to access basic health services such as a GP, a dentist or access to fresh produce.

“People in Gordonvale and Richmond are pulling out their own teeth because they cannot afford to, firstly, go to a dentist and secondly, afford the petrol to drive 700klms to the nearest health provider,” Mr Katter said.

Mr Katter believes there is an alternative solution and that is ethanol production in Australia.

“The answer to this lies with ethanol. Every country on earth has moved to ethanol.

"The current price of fuel in the US is 87 cents a litre; in Brazil, it is 95 cents a litre; and in Australia it is $1.54 a litre,” Mr Katter said.

“Let us not worry about hitting the poor people of rural Australia for another 50 per cent increase in the price of their fuel – let’s talk about mandating ethanol and creating fuel security, industry, real jobs and a solution for our struggling rural communities.”

Mr Katter will be introducing legislation into the Parliament which repeals the indexation on fuel and distributes the money generated from fuel excise taxes to road funding - with a minimum two thirds of the funding going to rural and remote areas.