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Government's fuel excise being halved

On Monday 30 March 2026, the Federal Government announced two major changes aimed at providing temporary relief to Australians from the fuel price spike caused by the war in the Middle East. For the period from 1 April to 30 June 2026:

  • The Fuel Excise will be halved from 52.6cpl to 26.3cpl, providing ALL motorists with a 26.3cpl reduction at the point of purchase regardless of whether the fuel is used for business or personal purposes; AND
  • The heavy vehicle Road User Charge (RUC) will be set to zero, providing additional relief to transport businesses by increasing their Fuel Tax Credits (FTC) entitlement for heavy vehicles travelling on public roads from 20.2cpl to 26.3cpl.

The Government also announced that it will defer the next scheduled increase in the RUC by 6 months, providing certainty that the FTC rates will revert to their current levels (20.2cpl for fuel used in heavy vehicles travelling on public roads, and 52.6cpl for “off-road” business uses) for the period from July to December 2026.
 
The announced changes are not yet law, although legislation is expected to be passed imminently.