Treasury Laws Amendment (Fuel Excise Relief) Bill 2026

# Treasury Laws Amendment (Fuel Excise Relief) Bill 2026 ## What it does This bill reduces the fuel excise (tax) that's added to petrol and diesel prices. It creates two separate reduction periods where the government will lower how much tax is charged per litre of fuel you buy at the pump. ## Why it matters Lower fuel excise means cheaper petrol and diesel for drivers, which flows through to lower transport costs for businesses and potentially cheaper goods in shops. However, the bill also reduces fuel tax credits that some businesses (like farmers and mining companies) claim back, so the savings won't benefit everyone equally. ## Key details - **First reduction**: Runs from 1 April 2026 to 30 June 2026, cutting fuel duty to 50% of the normal rate - **Second reduction**: A further cut may apply if the Treasurer decides to lower the percentage even more during the same period - **Fuel tax credits affected**: Schedule 3 changes how businesses that use fuel off-road (tractors, generators, etc.) claim tax credits back, meaning some will get less benefit than before - **Commencement**: Takes effect immediately upon Royal Assent, except Schedule 3 which starts the day after

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