PM says he has saved drivers money

[SmellyTofu]

Rather than clutter other parts of the forum, I'd start one here.

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PM says he has saved drivers money
From: AAP
August 25, 2005

PRIME Minister John Howard says petrol prices are beyond his control - but Australians would be paying more if it wasn't for the Government.

Petrol prices have increased to $1.30 a litre in some areas, but Mr Howard said they would be even higher if the Government had not abolished indexation on fuel excise.
He also said the Government's excise revenue had not risen because it was levied on volume of petrol sold, not price.

However, the GST take had increased, he said.

"I hate these high petrol prices but they are due to overseas forces beyond our control," Mr Howard said on ABC radio in Adelaide.

"Every country in the world is suffering from these high prices. We cut excise several years ago and another very important thing is we abolished the automatic indexation of excise.

"If we hadn't done that petrol now would be even higher and people would have every right to say, 'well not only do we have to pay these insufferably high prices, but each year your proportionate share of what we pay for petrol is rising'."

Mr Howard said the rise in petrol prices produced what economists called the substitution effect where people spent less on non-essential consumer goods.

"It is fair to say that as people have to pay more for petrol they can't afford to buy some other things or they can't afford to buy other things in such volume," he said.

"If GST is charged on those things that they purchase in lesser quantities, then the aggregate GST collections may not be going up so much."

Mr Howard said there was no evidence that people could not afford to buy food because of high petrol prices.

"There is this principle that if you have a given amount of money each week and you have to pay a bit more for a necessity such as petrol, and you continue to buy food, clothing and fees for children and so forth....you then cut back on things that aren't quite so essential," he said.

"Then those things have GST attached to them, then the total collection of GST revenue is not as great."

[bnefit]

to certain extent, the australian government is really doing something to make the petrol prices lower.

the prices in singapore are much more expensive than here. it's almost $1.70/litre

[SmellyTofu]

But everything to do with personal transport is expensive in SG.

I think GST on the fuel excise is a bit wrong. GST is calculated on the raw material price + excise.. rather than GST on just the raw material price.

But we are doing better than the rest of the world... I'm not complaining too much. Just keep fill up with 91 stuff.

[bagaichiban]

Personally i think "aggregate GST collections" doesn't justify household consumption though. It should include other sectors activities, such companies/government investment activities. We should look in detail about how much or the proportion each sector contribute to the aggregate GST. Therefore, even the aggregate GST increased, it doesn't necessarily mean that household consumption on GST goods are increased.

[nick]

huhuhu~~.. HK and Singapore's fuel are more expensive than AUS... Im from Malaysia.. so the petrol in AUS is pretty expensive to me..><~~

[SmellyTofu]

But fortunately for you Brisbane people, you don't have a state excise on it too... plus me NSW subsidises Qld a lot with GST redistribution. I paid the most I've ever for 91 stuff at 119.9 and this is the cheapest you can find in the weekly cycle. Jumped straight to 127.9 and hovering around 124.9 today.

[vividjazz]

The excise would be alright if they actually spent the money on the roads. The state government excise in NSW is the worst as the only new roads in Sydney are toll roads anyway.

[SmellyTofu]

Only thing is that our GST goes north... so in essentially NSW spending goes to fund Qld roads.

And the 3x3 scheme? Maybe no one remember that from the 80's... it's still there.. but it just goes into consolidated revenues. But yes, if we saw some improvements in our roads, then I don't mind paying the 3c per litre. I don't mind toll roads either but that's just what you have to do to get about.. not that I go on them often. Melbourne roads are also tolled and to be honest, their road system is quite good... except the stupid speed camera where I spend more time looking at my speedo than the road in front of me.

[ahcash]

The government tax can be reduced, however the revenue would need to come from somwheere ..

[vividjazz]

ahcash said:

The government tax can be reduced, however the revenue would need to come from somwheere ..

In NSW it can come from the 100,000 excess state public service jobs. Again these would be alright if these people actually made a contribution to the state rather than bleeding it dry. There are thousands of state public servants that have no position and get paid to do nothing. Not a bad way to earn a living if you can get away with it.

The feds are getting GST revenune on petrol that they didn't get before GST introduction + the excise. A tax on a tax. More revenue than ever. It was a promise to remove excise once GST was introduced the same as GST replaced Wholesale Sales Tax and other hidden taxes.

[SmellyTofu]

As nice as it is, who can stand doing nothing all day long even if you are getting paid for it? I'd go insane if I did that.. I've worked for a govt dept once.. never again!

[wickee]

we pay around 119-120 now as well

[nick]

so when would be the cheapest rate? today is Tuesday and the price is 128

[vividjazz]

If every Australian just didn't buy petrol for 1 whole day (on the same day) the stock pile resulting would cause major grief for all the oil companies but good luck getting such a protest organised.

91RON is 139.9 in Sydney now. They reckon it will hit 160 in a few weeks. You'll soon be able to pick up one of those 150l fuel tank big 4WDs real cheap. They'll be worth as much as a VW combi in VIC after that VICroads ad a few years back very graphically showing a combi ploughing into the side of a truck on the highway.