AUSTRALIA 
Mixed reaction to budget reply
Friday, 16 May, 2008
Brendan Nelson
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There's been a mixed reaction to Brendan Nelson's Budget reply speech, in which he vowed a Coalition government would slash fuel excise and block some of the Government's budget measure when it gains control of the Senate.
• Cut petrol excise by 5 cents a litre
• Block Labor's proposed alcopop tax increase
• Block increase to Medicare surcharge income threshold
• Lower capital gains exemption to 5 years for small businesses
• Lift entry requirements for teacher training
• Increase carers benefits
In his budget reply speech last night Opposition Leader Brendan Nelson called on the government to cut petrol excise by five cents, something the Coalition never offered while in power under John Howard.
Visit our Budget 2008 special minisite
The government has questioned the opposition's timing and has accused it of selling out its economic credibility.
It says the Coalition is making an about-face on petrol taxes after refusing to cut petrol excise during its 11 years in office.
Assistant Treasurer Chris Bowen poured scorn on the Coalition's alternative plan, accusing Mr Nelson of throwing money around like confetti at a wedding.
Mr Bowen said the government's Fuelwatch scheme to bring down petrol prices will cost $20 million, while the Coalition's proposal would cost millions of dollars more.
He also said the review of taxation by Treasury Secretary Ken Henry is expected to examine fuel excise.
Trucking group rejects fuel tax cut
The Australian Trucking Association (ATA) doesn't support Mr Nelson's proposal for a cut in the fuel excise.
Motorists currently pay 38.14 cents per litre in fuel tax while trucking companies pay an effective tax rate of 19.63 cents per litre.
ATA communications manager Bill McKinley says the opposition's plan will reduce their effective fuel tax to just 14.633 cents per litre and wouldn't be enough to pay for safer roads, more rest areas and better regulations.
And the Climate Institute says dropping the petrol excise will encourage pollution.
"It was an extremely disappointing speech," institute chief executive John Connor said.
"We think the doctor's lost the script."
Dr Nelson had emphasised prosperity over tackling climate change in his speech, Mr Connor said.
Source: SBS, AAP
• Cut petrol excise by 5 cents a litre
• Block Labor's proposed alcopop tax increase
• Block increase to Medicare surcharge income threshold
• Lower capital gains exemption to 5 years for small businesses
• Lift entry requirements for teacher training
• Increase carers benefits
In his budget reply speech last night Opposition Leader Brendan Nelson called on the government to cut petrol excise by five cents, something the Coalition never offered while in power under John Howard.
Visit our Budget 2008 special minisite
The government has questioned the opposition's timing and has accused it of selling out its economic credibility.
It says the Coalition is making an about-face on petrol taxes after refusing to cut petrol excise during its 11 years in office.
Assistant Treasurer Chris Bowen poured scorn on the Coalition's alternative plan, accusing Mr Nelson of throwing money around like confetti at a wedding.
Mr Bowen said the government's Fuelwatch scheme to bring down petrol prices will cost $20 million, while the Coalition's proposal would cost millions of dollars more.
He also said the review of taxation by Treasury Secretary Ken Henry is expected to examine fuel excise.
Trucking group rejects fuel tax cut
The Australian Trucking Association (ATA) doesn't support Mr Nelson's proposal for a cut in the fuel excise.
Motorists currently pay 38.14 cents per litre in fuel tax while trucking companies pay an effective tax rate of 19.63 cents per litre.
ATA communications manager Bill McKinley says the opposition's plan will reduce their effective fuel tax to just 14.633 cents per litre and wouldn't be enough to pay for safer roads, more rest areas and better regulations.
And the Climate Institute says dropping the petrol excise will encourage pollution.
"It was an extremely disappointing speech," institute chief executive John Connor said.
"We think the doctor's lost the script."
Dr Nelson had emphasised prosperity over tackling climate change in his speech, Mr Connor said.
Source: SBS, AAP
