A dispute between Treasurer Jim Chalmers and shadow treasurer Tim Wilson has intensified over comments about fuel taxes and petrol prices.
Wilson had earlier said that when petrol prices increase, the government collects more revenue. However, Chalmers rejected Wilson’s claim about the fuel excise, saying the tax is charged per litre rather than based on the price of petrol.
Speaking to reporters, Wilson dismissed the criticism and accused the treasurer of mismanaging the economy.
He argued that fuel excise is indexed to the consumer price index twice each year and noted that the goods and services tax also applies to petrol prices.
Wilson said increases in petrol prices can therefore affect overall tax revenue through GST.
The shadow treasurer also criticised the government’s economic record, arguing Chalmers had not done enough to improve economic growth or address budget pressures.
The exchange reflects ongoing political debate about fuel prices and taxation as global tensions place pressure on energy markets.
