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Keating government spends more tax payer dollars spreading lies: 'animals' lying about 'Fightback!'

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, T im Fischer mp Federal Member for Farrer

Leader of the National Party of Australia

Shadow Minister for Energy and Resources


The Keating Government's National Media Liaison Service (Animals) is working in top gear to spread lies around countiy Australia about the Coalition's Fuel Tax Policy and Road Funding.

Federal Leader of the National Party, Tim Fischer today described the Animal’s campaign as scurrilous and an utter waste of taxpayer's money.

"This National Media Liaison Service is paid for by Taxpayers, it's purpose is to explain and promote Government decisions and initiatives. It is not there to be a party political instrument.

"Despite this, the Service is deliberately spreading the outright lie that the Coalition, having abolished all excise on fuel will claw back the revenue lost through road user charges.

"Nothing could be further from the truth. The total abolition of the fuel excise is 'Fightback!' policy. Road user charges are being addressed as a seperate matter entirely and are not related to tax changes on fuel.

ABOLISH KEATING'S FUEL TAX SLUG - "Firstly the Coalition will totally abolish all Federal excise on fuel. This will mean a saving of 19 cents a litre to all users. In addition for business users, the GST portion on the cost of fuel will be fully refunded, giving total savings to business users of as much as 26 cents a litre.

"On average, every motorist will save $11.40 each time they fill their vehicle's fuel tank.

FAIRNESS - NOT SUBTERFUGE - "The Coalition has not and will not link the revenue gained from road user charges with the revenue lost through abolishing excise. It is the Government that is presently looking at road user charges. The Coalition's fuel revenue reduction is funded from Consolidated Revenue which draws the necessary funding from the wider GST Tax net," Mr Fischer added.

M r Fischer said the high taxing Keating Government that gave us the recession we did not need extracts $9.5 billion from consumers each year in Wholesale Sales Tax. It also milks the motorist to pay for its own high spending programs including the Governments dis-information service the National M edia Liaison Service which should be immediately abolished.

For further information phone 06 277 4058 Attached is an extract from the relevant section re. road funding from the Tightback* policy Package


ENDS 10 March 1992


5.6J National Road Funding P olicy

For too many years road users in Australia h are been slugged by Aid excises. State franchise fees, registration chargee, sales taxes and stamp duties.

Data is patchy but the latest available figures (1987/88) indicate that revenue collected by government· from road users by these various taxes exceeded government expenditure on roads by $2.6 billion.

Our tax reform measures ensure th a t road users are not treated as a source of general revenue raising. The abolition of the excise and its funding by the Goods and Services Tax ensures th a t fuel · the most pervasive of all business inputs · is not subject to an input tax. In addition, the sales tax on transport equipment also will be abolished. In a large transport dependent country like Australia, the abolition of these taxes means th a t business can make its production and distribution decisions purely on the basis of resource costs, undistorted by taxation considerations, including by the Goods and Services Tax since businesses will receive a rebate on Goods and Services Tax paid on

their use of fuel.

Under the new Coalition Government road users will no longer be treated as a milch cow to fund government expenditures in areas outside roads. ~ "

At the present time the Federal Government and the States are in this process of negotiating a new approach to road funding. These negotiations are however hampered by the Commonwealth reliance on fuel excises as a source of general revenue and by the increased reliance of the States on fuel-related franchise

fees as a milch cow for general revenue.

At the time of developing this proposal the final nature and design of the new arrangements is unknown. The Coalition therefore is not now in a position to assess the adequacy or otherwise of the new road user charges th at are expected to be implemented next year or beyond.

The incoming Coalition Government, therefore, will request the newly ... established National Road Transport Commission to review a national system of road user charges to apply following the implementation of our tax reform package. The Commission would be guided by the need for the system of road user charges to be equitable, efficient and simple to administer. The Commission would be free to recommend th a t charges take any form or combination of forms.

These changes to the arrangements for road funding will ensure that all revenue raised by user chargee wfll be spent on road maintenance and construction. The overall level of road user chargee and road expenditures wfll be the responsibility of the National Road T ransport Commission. Charges and taxes on road users and the level of expenditure on roads will no longer be subject Is the vagaries of the political or budget processes which have produced wild fluctuations in rates of charge and levels of expenditure in past years.




Possible new tax on all motorists

Petroleum Products Fuel Excise Tax

Private users ' Business users (GST fully refunded)

42 0/L

Average price of petrol before . Commonwealth Government


42 0/L

Average price of petrol before , Commonwealth Government


42 0/L 4 2 * /L

Other road user charges, such as registration, are state and territory charges. These will not be affected by a Coalition Government but are currently being reviewed by the Federal Labor Government as part of their draconian road user charge proposal. The Coalition has given an unequivocal guarantee there will be no Commonwealth fuel based road user charges. (In time, there will be a road user charge for commercial vehicles, especially heavy vehicles, but this will NOT be a fuel based charge). The price reductions

will be safeguarded against attempts by state and territory governments or the Petroleum Industry to keep any of the gains due to motorists.

Note: Figures are rounded to nearest cent (based on ‘Fightback* 1991 figures). Labor is continuing the 20% sales tax on freight services. The Coalition will abolish this. Under the Coalition there would be 15% GST on freight services but this would be fully refunded to business users.

Authorised by: Tim Fischer MP, Shadow Minister for Energy and Resources {March 1992)