STEPHEN JOHNSON: Jim Chalmers cuts fuel excise after calling Liberals’ plan a ‘cost-of-living con job’

Treasurer Jim Chalmers plans to halve fuel excise for three months at cost of $2.55 billion — less than a year after calling a similar policy from former Opposition leader Peter Dutton a “cost-of-living con job”.

In Opposition and Government, Labor has steadfastly opposed Coalition plans to temporarily cut in half the tax on petrol and diesel.

During last year’s Federal election campaign, Dr Chalmers had nothing nice to say about the Liberal Party’s excise campaign promise.

“Peter Dutton’s petrol promise is a cost-of-living con job,’’ Mr Chalmers told News Corp journalist Samantha Maiden in April 2025.

At the time, the Liberal Party was touting the benefits of a $14-a-week saving from halving fuel excise to 25.4 cents a litre, aiming its message at the likes of families with a Toyota RAV4 filling up their SUV with a 55-litre tank.

Yes, those were more benign economic times when the Reserve Bank was about to embark on the second of three rate cuts for 2025.

In the aftermath of Russia’s invasion of Ukraine in April 2022, Dr Chalmers in Opposition made it clear a Labor government would not extend a six-month halving of the excise to 22.1 cents a litre when it was due to expire in September that year.

Back then, motorists were paying $2.20 a litre for fuel and Scott Morrison was weeks away from losing the election as Liberal prime minister.

Sanctions on Russian oil would go on to spark the worst inflationary crisis in 32 years and 13 interest rate rises from the Reserve Bank of Australia.

“Our starting point is that it ends. If there is an incredibly compelling reason to leave it in, we would consider that,” Dr Chalmers told the National Press Club in Canberra four years ago.

“But to be up-front with Australians, no matter who wins Government in May, it is likely that that petrol price relief will end.”

With motorists now paying an average of $2.50 a litre for unleaded and more than $3 a litre for diesel, Dr Chalmers is the new salesman for a policy ripped off from new Opposition Leader Angus Taylor.

Fuel excise is now being halved to 26.3 cents a litre for three months — down from the usual 52.6 cents, at a cost of $2.55 billion — in a bid to save motorists filling up a medium-sized SUV $14.50.

“The war in the Middle East is inflicting some serious damage on the global economy and Australians are paying a hefty price for that at the bowser and beyond,” Dr Chalmers told reporters in Canberra on Monday.

“From an economic point of view, the end of the war in the Middle East can’t come soon enough and in the interim, the Albanese Government is stepping in and stepping up to provide relief where we can do that in a responsible way.”

Labor has offered a 65-litre fuel tank as its benchmark, imagining drivers with an even bigger Toyota Kluger SUV, claiming that would save $19 filling up — even though the arithmetic would suggest $17.

More motorists drive the RAV4, with its smaller tank.

“The steps that we’re announcing today are all about taking some of the sting out of these higher petrol and diesel prices,” the Treasurer said.

“For people who are under pressure, this is timely, this is targeted, this is responsible cost-of-living relief to help people get through a difficult period.”

In a repeat of the Bondi massacre royal commission, Prime Minister Anthony Albanese has buckled to Opposition pressure.

In this case, the announcement in the courtyard outside the PM’s office occurring three days after his Liberal opponent — battling bad polling numbers — called for the excise to be halved for three months.

As recently as Friday, the PM was keeping his options open, but slammed the Opposition policy because it was based on diluting tax breaks for EV drivers.

The excise relief comes into effect on April Fool’s Day and anyone who thinks the cost to Commonwealth revenue will reduce the projected $36.8 billion deficit forecast for this financial year is simply a fool falling for a con job.