In his budget night speech, Treasurer Josh Frydenberg said the measure was part of a “temporary, targeted and responsible cost of living package”, designed to ease the pressure caused by higher fuel, food and shipping costs.
The fuel excise is currently 44.2 cents per litre. That will be cut to 22.1 cents per litre for a period of six months – taking it well beyond the looming election in May.
The cut cost about $5.6 billion in lost revenue, according to government estimates.
