\n<\/p>\n
The Albanese government is contemplating further relief for struggling households and businesses in next month\u2019s federal budget, as peace talks continue between the US and Iran<\/a> amid a fragile ceasefire.<\/p>\n The infrastructure minister, Catherine King, said the success of those talks was the \u201cbest chance\u201d at bringing down fuel prices. But she warned there would be a \u201clong tail\u201d from the crisis even if the strait of Hormuz<\/a> \u2013 which was still being blocked by Iran and strangling global oil supplies \u2013 reopened imminently.<\/p>\n Australia\u2019s fuel excise has already been halved<\/a> until the end of June, and heavy vehicle road user charges have been suspended, but the government has been looking at how events unfold in the coming weeks to see whether more relief could be included in the May budget, King said.<\/p>\n \u201cWhether there\u2019s need for additional measures for household and businesses, they\u2019re all the things that we\u2019re contemplating as part of the budget process,\u201d King told ABC\u2019s Insiders on Sunday.<\/p>\n \u201cWe\u2019re very hopeful in terms of the ceasefire, but we\u2019re realistic about that as well. This is a complex geopolitical area that\u2019s not \u2026 an easy area [a] for quick and easy resolution.<\/p>\n \u201cSo we\u2019ve got to be prepared for that and understanding [of] what that means for businesses, for our farming communities, making sure we continue to transport goods and services and provide services for people in communities far and wide.\u201d<\/p>\n Treasurer Jim Chalmers told a politics in the pub event in his Queensland electorate the global energy shock and its flow on effects were front of mind for the government ahead of the budget.<\/p>\n \u201cThe pressures on people won\u2019t just disappear the moment the ceasefire sticks or the day the strait of Hormuz is properly opened,\u201d he said.<\/p>\n \u201cEven after the drones stop it will take some time to get the global economic show back on the road and that matters a lot for us as we put a budget together.\u201d<\/p>\n Chalmers said the 12 May package would focus on fuel security, supply chain resilience and economic reform.<\/p>\n He said the budget would balance \u201cthe pressures of the here and now with our intergenerational obligations to real people in real communities\u201d.<\/p>\n It came as the government prepared to launch a new TV, digital and billboard campaign on Monday to encourage people to minimise their fuel use.<\/p>\n The \u201cevery little bit helps\u201d campaign is pitched as \u201ca practical guide aimed at managing fuel supply chain pressures driven by the conflict in the Middle East\u201d.<\/p>\n But the shadow defence minister, James Paterson, criticised the campaign, which would reportedly cost around $20m, as \u201cpolitical propaganda\u201d.<\/p>\n \u201cFrankly, I don\u2019t think Australians want to be lectured by taxpayer-funded political propaganda about driving less,\u201d Paterson told Sky News on Sunday.<\/p>\n \u201cIt\u2019s very clearly about their political interest, not about fixing the problem.\u201d<\/p>\n A successful ceasefire between the US and Iran could result in Iran and Oman charging fees<\/a> of up to $US2m ($2.8m) a ship to pass through the strait \u2013 a move King said would be \u201cvery challenging\u201d for economies.<\/p>\n While Australia had little control over what happens in the negotiating rooms in Islamabad, King said the government would focus on ramping up avenues for renewable fuels and electrification, while taking a swipe at the Nationals leader, Matt Canavan, for proposing more fossil fuel use that \u201cthe world has moved on\u201d from.<\/p>\n \u201cWe\u2019ve got this incredible resource here in this country that lots of other countries don\u2019t have. We\u2019re a secure, stable democracy [with] the capacity to generate renewables here in this country,\u201d she said.<\/p>\n \u201cActually, the fact that we basically grow canola here, then we ship it overseas, turn it into sustainable aviation fuel and then buy it back, is nuts. In our view, we should actually be having that low-carbon liquid \u2026 renewable diesel, we should be able to generate that here.<\/p>\n \u201cWe cannot rely on the rest of the world for our energy security. We\u2019ve got to be able to generate it here and actually then use it here as well. And electrification is a great way.\u201d<\/p>\n Global events have put further strain on the government\u2019s upcoming budget as the treasurer, Jim Chalmers, balances the country\u2019s rising inflation, stagnant productivity and pressure on the cost of living.<\/p>\n There is debate over whether tax breaks for electric vehicle (EV) owners should continue, with the scheme forecast to blow out 10 times its original four-year budget forecasts to $5.1bn, as reported by the Australian Financial Review.<\/a><\/p>\n King said the tax break had done a \u201cgood job\u201d of increasing EV affordability, but she would not rule out whether it would be wound back.<\/p>\n EV users do not pay the fuel excise, and governments have been looking to introduce a road user charge to recoup missed revenue<\/a> as their market share increases. King indicated her department had done modelling of the impacts but said there wasn\u2019t a \u201cclear pathway\u201d for it to pass parliament at the moment.<\/p>\n \u201cWe\u2019re trying to encourage as much electric vehicle uptake as we possibly can \u2013 we don\u2019t want to disincentivise that at all. So there\u2019s a balance to be struck here, both obviously, with the fringe benefit tax and potential of road user charging, but we\u2019re making our way through that,\u201d she said.<\/p>\n<\/div>\nFocus on ramping up renewable options<\/h2>\n