VACC urges PM to drop “Tax on the Tax”
27 May, 2008
39 Comments 
It was only earlier this year we reported (with some anger) that petrol prices were nearing $1.5 mark, but now petrol prices getting closer and closer to the $2 mark! At last, there is some good news.
The Victorian Automobile Chamber of Commerce (VACC) has launched yet another attack on the government urging the PM to drop the ‘tax on the tax’ – that part of the GST that sits on the excise component of the pump price of petrol.
It’s estimated that dropping the additional tax will bring the price of petrol down by at least 3.8 cents a litre, not exactly pocket change when you consider that it will save families on average around $150 a year.
“We have been saying it for eight years: placing GST on the excise component of petrol is indefensible and counter to the Howard and Costello Government’s pledge when it introduced the 10% ‘Goods and Services Tax’ in 2000,” VACC Executive Director, David Purchase, said.
Mr Purchase has welcomed Kevin Rudd’s government for considering dropping the additional tax.
“VACC urges Mr Rudd to act, to secure the agreement of the States who benefit from the GST, and to axe this tax forthwith. Putting a tax on a tax has never made sense, could easily have been rectified at the outset, and was always an unfair impost on motorists and business.” Mr Purchase said.
So far VACC has urged the previous government seven times to drop the additional tax. Do you think the new government will listen?
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May 27th, 2008 at 12:34 pm
$150 a year? How poor are people that they can’t afford an extra $150 a year. Thats less than I make in a day. Get over fuel prices you whingers.
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May 27th, 2008 at 12:54 pm
I have to agree with KC. Theres next to nothing that we can do to lower them, not substancially anyway, so why don’t people just get over it and learn to live with it, because it’s not going away.
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May 27th, 2008 at 12:58 pm
4c/l isn’t going to make much of a difference at all. Make it worthwhile or forget about it. The next fuel increase will swallow that 3.8c/l in a flash. Why bother?
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May 27th, 2008 at 1:00 pm
KC - so you are saying it is perfectly acceptable to have a scenario where you are paying a ‘Goods and Services Tax’ (i.e. GST) on a Tax (the excise). Pray tell, which goods or service have you received when you pay for the excise?
It is blase` attitudes like that which allow our governments (all levels) to have example of this same sort of thing everywhere where we are charged a tax and then a GST component on top of that which includes the cost of the original goods and a levy. excise, duty etc on top of that.
Thats OK. Just kick back and have another VB mate. And avoid thinking at all costs…
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May 27th, 2008 at 1:37 pm
Yayyyy CA finally use an Aussie servo pic! :)
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May 27th, 2008 at 2:07 pm
The thing is, if the tax is dropped and the prices are lowered by 3.8c, the petrol companies will just raise prices again to cover it.
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May 27th, 2008 at 2:38 pm
Mike but the petrol companies don’t make the money from the current tax, the government does, so it would be, I guess, anti-competitive to raise prices.
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May 27th, 2008 at 2:47 pm
Yeah I know, but they could raise prices and then if people complain, they could just say ‘but oh, it would have been 3.8c HIGHER STILL if the govt had kept the tax’. At least that’s what I would do if i was a petrol company with a monopoly/duopoly.
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May 27th, 2008 at 3:07 pm
How quickly people forget that the excise was reduced when the GST was introduced to “compensate” for the tax on a tax effect. Prior to the GST the excise and customs duty was approx 44c per litre. The GST on this amount would have been 4.4c. The excise was subsequently reduced by 6.6c on 1 July 2000 and a further 1.5c the next year. One of the reasons this happened is because it makes the accounting much easier for business and government to calculate. If you want to reduce the taxing of fuel, reduce the excise first, not the way the GST is applied.
Didn’t someone suggest this recently? 5c per litre i think.
5 cents less excise equals 5.5c at the pump. Better than 3.8c.
But Kevin 07 is already out of ideas and he’s only been here 6 months. He can’t even bring himself to admit that a reduction in the excise would have more effect than a summit to discuss removing the GST on the excise.(which was effectively done in july 2000).
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May 27th, 2008 at 3:34 pm
^^^^
Fantastic reply.
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May 27th, 2008 at 4:33 pm
So, DLR1, you are saying that Howard, the master of new taxes, voluntarily gave up 6c per litre of fuel to the states upon the introduction of GST??? HO HO HO, Howard was many things, but a Santa he wasn’t.
Alborz, you raised a nice word - anti-competitive. But I don’t see how you can use the word in the same sentence, in the context that Oil Companies wouldn’t do that. :) Perchance to dream, but the reality is that gouging is alive and well in virtually every industry in Australia that supplies consumers. The supermarket chains do it, oil companies do it, local governments do it, state governments do it, utilities suppliers do it, federal governments do it.
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May 27th, 2008 at 5:57 pm
TO ALL YOU ALP VOTERS……time to cringe as not only given up ghost to help with petrol prices and cost of living as 6months in to ALP Federal Government and nothing else to do to assist! LOL SO MUCH AT THIS CAT!
Prime Minister Kevin Rudd is refusing to guarantee petrol prices will not be higher under his FuelWatch scheme.
A leaked Cabinet submission has exposed a rift within Federal Government ranks over the scheme, which will force petrol retailers to give 24 hours’ notice of their prices.
In the submission, Resources Minister Martin Ferguson warned the policy would leave families worse off, but he has since fallen into line.
Came outta the blocks hard since being elected….seems as if more concerned with his ego and whirl wind tour like some old hack rocker. JOKE OF A LEADER! YOU WANTED HIM… SO YOU GOT HIM!
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May 27th, 2008 at 6:41 pm
Reckless. Just because the facts don’t support your political tastes doesn’t change them.
The last two years of a fed Liberal govt also saw the annual CPI indexing of skipped because of “high” fuel prices. Now that their even higher and KRudd promised to put downward pressure on prices, does he skip the CPI indexing of the excise NOOOOOO WAAAAAAAY.
Nice one Kevvy.
Pertol UP
Groceries UP
Interest rates UP
Unemployment UP
Health insurance UP
Medicare levy UP?
Whats next???
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May 27th, 2008 at 7:09 pm
Were are the latte or chardonnay ALP lovers? Oblivious? Ignorant? Or should we just ignore the UP, UP, UP, UP, UP that has firmly entwined ALP before when in power that Bret mentioned earlier on this thread.
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May 27th, 2008 at 7:15 pm
Hands up all the Liberal voters who really believe that the price of petrol would be any different today if Howard was still in dictatorship.
If you believe that, you probably also think it’s OK for Liberal leaders to sniff seats, which I’m told some do with their party support.
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May 27th, 2008 at 7:20 pm
ALP-voting latte sippers? Right here, Naughtyius Maximus!
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May 27th, 2008 at 7:30 pm
1. Net Government Debt $95.8 billion (95/96)….ZERO (07/08)
2. Interest on Net Government Debt $8.4 billion (96/97)….
ZERO (07/08)
3. Average Mortgage Rates 12.75%….7.20%
4. RealWages Growth -1.8% (Mar 83 - Mar 96)….19.8%
(Mar 96 - Dec 06)
5. Average Small Business Lending Rates 14.25%….8.90%
6. Unemployment Rate 8.2%(Mar 96)….4.2% (May 07)
7. Long Term Unemployed 197,800(Mar 96)….76,000(Mar 07)
WOW that is double>>>>5.2%….2.5%
8. New Private Business Investment $63.7 billion(95/96)….
$147.0 billion (05/06)
9. Tax Burden 22.3% of GDP(95/96)….20.7% of GDP (07/08)
10.Middle Tax Bracket 34% - up to $38,000….30% - up to $80,000 from 1 July 2008
11.Top Tax Bracket 47% - $50,001…+ 45% - $180,001 +
from 1 July 2008
12.Australians in Work 8.3 million (Mar 96)….10.4 million
(Apr 07)
13.Real Net HouseholdWealth $2,123 billion(Mar 96)….$5,356 billion (Dec 06)
14.Total Exports $99 billion (95/96)….$196 billion (05/06)
15.Waterfront Crane Rates (per hour) 15.9 (Dec 95)….27.0
(Jun 06)
16.Industrial Disputes (days lost per 1,000 employees, per year) 193 (Avg 83 - 95)….59 (Avg 96 - 06)
17.Credit Rating Downgraded twice: AA….Upgraded twice:
AAA
18.Funding for Science and Innovation $3.8 billion (95/96)
….$6.5 billion (07/08)
19.Funding for Medical Research $127 million (95/96)….$951 million (06/07)
20.Direct Funding for the Environment $379 million (95/96)….$1,699 million (07/08)
21.Funding for climate change $15.9 million (96/97)….$499.4 million (07/08)
22.Labor Coalition Defence Force Funding $10.6 billion
(95/96)….$22.0 billion (07/08)
23.ADF Personnel who are “Combat Ready” 45.2% (Jun 96)….66.6% (Jun 06)
24.Australian Federal Police Funding $192 million (95/96)….$976 million (07/08)
25.Funding for Indigenous Programmes $1.7 billion (95/96)….$3.5 billion (07/08)
26.Total Spending on Health $17.9 billion (95/96)….$51.8 billion (07/08)
27.Health as Percentage of Australian Government Spending
13.6% (95/96)….22.3% (07/08)
28.Australians with Private Health Insurance 34% (1996)….43.4% (Dec 06)
29.Immunisation Rates 52% (0 - 6 year olds as at 1995)….91% (12 -15 month olds as at Mar 07)
30.Health Care for Veterans $1.6 billion (95/96)….$4.7 billion (07/08)
31.Apprentices in Training 152,700 (Mar 96)…404,200 (Sep 06)
32.Funding for Roads $1.6 billion (95/96)….$3.4 billion
(07/08)
33.Mandatory Literacy Testing for Children NONE Yrs 3,5,7,9
Federal funding for Government Schools $0.9 billion
(95/96)….$1.9 billion (07/08)
34.Work for the Dole Participants NONE 555,489 (since 1997)
Funding for Child Care $1.0 billion (95/96)….$3.0 billion
(07/08)
35.Total Number of Aged Care Places 141,292 (Jun 96)….208,698 (Dec 06)
36.National Respite for Carers Programme $19 million (96/97)….$175 million (07/08)
37.Funding for Overseas Aid $1.6 billion (96/97)….$3.2 billion (07/08)
38.Black Spot Road Safety Programme SCRAPPED SAVING LIVES
Federal Police Drug Seizures (excluding cannabis) 162 kgs
(95/96)….1,114 kgs (05/06)
In comparing levels of funding and numbers of places, it should be noted between March 1996 and May 2007 Australia’s population increased around 14% and CPI increased just 30.8%. Figures at 10th May 2007!
Obviously tired one Dud Rudd has given up giving any more relief with petrol and cost of living…..and the stupid ones who voted for this guy have the hide to say Howard was tired. Look at Rudd as he has put hand up AWOL 6months in……………..now that is dam too funny!
Too all who carry out deluded. Facts speak more then you r emotions and Rudd speaks more on giving up on petrol prices and cost of living = to defend ALP means I cant take you serious one bit!
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May 27th, 2008 at 7:33 pm
typo….Too all who carry on deluded. Oh I swing vote to and voted for Rudd as why vote last time for Howard as he will be replaced around 1yr in. That was a bad call!
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May 27th, 2008 at 7:35 pm
The further Rudd goes means the real ALP and Unions will be coming back to surface and the wheel will turn!
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May 27th, 2008 at 7:41 pm
I would forget seats and look at L.A.W law taxcuts as legislated (lie); this is recession we had to have; banana republic, arse end of world, interest rates high and go up, credit rating on down twice in 13yrs, no child will live in poverty by 1990, unemployment on rise.
Obviously you must be sitting on something on seat and appears to be not nice!
I will leave it to you guys to make a fool out of yourselves as I lit fuse! Like I said…..Rudd cant do anymore. NOW THAT IS RIOTIOUSLY FUNNY AS!
Ciao!
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May 27th, 2008 at 7:41 pm
Isn’t Chairman Crud convening another committee on this matter?
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May 27th, 2008 at 7:43 pm
4 cents off a litre why bother. Govt will slog it on somewhere else anyway and the petrol companies won’t even pass it on. Who knows what the true price of petrol is anyway?
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May 27th, 2008 at 7:44 pm
Refer ALP giving up ghost and division as per Naughtyius Maximus Says: May 27th, 2008 at 5:57 pm. This was sourced today as commented from ALP to media!
MAN DUD RUDD AND UNION CHRONIES IN SAND PIT….6months in and giving up!
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May 27th, 2008 at 7:48 pm
Forgot about the Seat Sniffer.LOL.
I thought these devos only craved bcycle seats? LOL.
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May 27th, 2008 at 7:48 pm
Maestro Mandarin Dud Rudd might go on another World Tour and go and push comments about Tibet to a huge population. A PM with 21 million going to China and commenting (albeit truth) to a giant population is insulting. Leave it to another huge populated countries leader like Bush to comment. This has nil to do with truth and more so respect as a minnow should not stick nose into a sea of people like China!
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May 27th, 2008 at 7:49 pm
Diesel a buck 80 in Sydney today!
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May 27th, 2008 at 7:51 pm
Hey Realcars….if it means anything, the seat sniffer should be stood down as odd and bad for public representative to do! I LMAO when this dweb tried to defend himself and believed his own lies and reality sunk in mid sentence and then he realised…..CANT DEFEND BEING THE IDIOT I WAS!
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May 27th, 2008 at 7:52 pm
Chairman Crudd has upped immigration to 300,000 a year.
Should keep the average wage earner in check.
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May 27th, 2008 at 7:53 pm
Iam sorta oblivious to filling up BF ite as LPG. I luv it and with hydrgoen generator got on it I get 750ish per $52 tank full………………….HOORAY!
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May 27th, 2008 at 7:54 pm
750kms-ish
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May 27th, 2008 at 7:56 pm
Chairman Crudd is making it up as he goes.
His answer is to convene a committee. His team hasn’t got a clue. Form a committee and implement the outcome and if we stuff up blame the committee. He is certainly sly even trying to get the Libs in on the committees for everything!
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May 27th, 2008 at 7:58 pm
Where can I get one to put on my AU EGAS UTE?
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May 27th, 2008 at 10:20 pm
Wow NMs critique of international relations is very incisive…ahem
Australia has the 4th lowest levels of tax on petrol in the OECD.
Taxes are your money that is spent on hospitals, schools (public and private), roads, rail, baby bonuses, farm subsidies (if these werent here food would be even more expensive), the military and police, subsidising the corporate sector and on and on and on.
Both Rudd and Nelson are taking this issue waaaaay out of the realms of reality. Now it is easy to sit on this forum and yell and whine it would be better if you actually had a go and got involved in the process. Dont like a governments policies? Join a political party and change it, if you could be bothered.
So get over it, we have it very good.
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May 27th, 2008 at 11:01 pm
Chairman Crudd is way out of the realms of reality on a lot of issues.
A computer for every child in every class room WTF?
National Broadband FTTN plan to blow the proceeds of the Telstra sale and then some which will achieve very little in the way of speed for the majority of customers at an exorbitant cost.
20/20 summit that established that we need to be a Republic again and little else.
Lets bring another million in each year. That should ease the housing shortage and decongest our cities.
Why not make it an over crowded shithole like everywhere else?
Got it good but not for long!
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May 27th, 2008 at 11:18 pm
Nopre it won’t make alot of difference, fuel prices will continue to rise for the next year. December 2008 petrol will be £1.80, diesel will be $2.00. Currently max diesel price in the UK is $3.17 avg $3.05, Petrol about £2.67. SO you lot have nothing to mon about. Our taxation part of fuel is currently $1.48/litre going to the greedy government coffers.
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May 27th, 2008 at 11:18 pm
sorry petrol $1.80 not our lovely pounds
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May 28th, 2008 at 6:01 pm
I have had approaches to stand as a candidate Peter Michaels….perhaps I see writing on wall as lots of wannabes who think its as good as it gets (like you leaving in your bubble) and I dont take fools to lightly as you cannot change the mechanics that is Canberra.
Maybe self proclaimed armchair critics such as you need to understand that politicians only manage taxpayers funding and no more. I dont want to see perks for all of them when there time is up, and I most certainly would expect you to understand that Mandrake Mandarin Dud Rudd should “not” comment the truth to China about Tibet as they are a massive population and control lots of relations with our economy - so for Rudd to comment is a slap towards that result and places a negative spin on it. Obviously you are oblivious to that!
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May 30th, 2008 at 10:31 am
That tax isn’t the problem, at all. It may help, if someone is struggling (which in this country, at this time, is pretty common) but; fuel prices have risen 400% since the beginning of the Iraq war. Coincidence, anyone?
If the American’s just shut.the.f**k.up and kept to themselves for once, we might all be okay. And you know what, they’ve asked the Middle Eastern businesses who have control over the oil fields to INCREASE PRODUCTION JUST FOR AMERICANS, because the fat morons are using all of theirs.
Getting rid of a small tax, isn’t going to change anything. Nobodies looking at the big picture here.
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June 12th, 2008 at 9:07 am
look at it this way
NO matter what happens fuel will go up if the government lower taxes and gst on fuel the demand will be so much higher and then the fuel companies will have no choice but to raise the price and the only way for it to go down is if countries like china and india calm down with their fuel consumpsion as they are the ones with the most demand. im not sticking up for anyone because i cant afford it but crying about it and feeling sorry for youself wont make it any worse the companies and PM rudd need to pull their fingers out and work out a way to help
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