TRANSPORT FUELS

CDP acknowledges that the cost of transport is an important part of any household budget.

The recent significant increase in fuel prices has affected many families and strategies need to be implemented to provide a long term solution to what is now a critical issue for many people.

There has been some debate about reducing the excise charged on transport fuels. However, a reduction of 5 cents or 10 cents per litre will do little to reduce the cost of fuel at the pump. On the other hand, removing the entire excise, currently set at 38 cents per litre would be economically irresponsible as this would cost $14 billion per annum in foregone revenue.

Removing or reducing the GST on motor vehicle fuel is far more achievable.

CDP supports the removal of GST on motor vehicle fuel as fuel is no longer a discretionary expense in today’s average households in Australia.

CDP will therefore work to have a proposal put to the Commonwealth to remove GST from transport fuels in WA. The proposal will also seek to recoup the loss of revenue through the levy of a higher GST (above 10%) on some luxury products/discretionary expenditure.

CDP will seek to have more government sponsoring for alternatives to current petroleum products.

CDP will work to introduce a national cooperation agreement between the States and the Commonwealth to fund research into alternative fuels and to offer investment incentives for the establishment of comprehensive alternative fuel distribution networks and the import and manufacturing of natural gas vehicles.

CDP will seek to quarantine part of WA large gas production for domestic use.

CDP will work to achieve a gradual switch to compressed natural gas (CGS) as this is an abundant resource in WA which can represent a saving of up to 60% on what motorists are paying for petrol, diesel and LPG.

CDP will seek to obtain a minimum target for the conversion of a percentage of the diesel fleet to operate on natural gas, as this approach has been implemented successfully in the European Union.

CDP will lobby the Federal Government for the introduction of a tax rebate to fund approximately 50% of the conversion cost of a diesel vehicle to operate on gas.