Fuel deal would cost us $22.8b
MOTORISTS will be hit with an extra $22.8 billion in taxes over the next decade if the Federal Government can strike a deal with the Greens to pass laws to index fuel excise.
The figure is contained in a new Parliamentary Budget Office analysis that shows the Government faces a $102 billion black hole by 2025-26 if it cannot pass measures left over from its first Budget.
Prime Minister Tony Abbott has already received hints of help from Greens leader Richard Di Natale in exchange for spending on public transport. The Government introduced fuel excise rises by regulation last year but needs to pass legislation to keep the six-monthly increases in place.
The cost to motorists will be barely noticeable at first, raking in $105 million this year and $345 million next year.
But the tax rises will drive up the cost of petrol over time, raising $3.7 billion in 2024-25 and $4.2 billion in 2025-26.
Assuming there are no compromise deals, the Senate standoff will allow the Budget deficit to more than double by 2018-19, the last year of the forward estimates. If that happened, the Budget would end up then $14.9 billion in the red.