W&D's solution to Australia's fiscal crisis
W&D has found a way for the government to raise more money. Crank up the price of petrol.
Australians speak mostly about the weather (especially if from Melbourne), the value of their home and complain about the price of petrol.
But, everything is relative. If one thinks about the price of anything in terms of the average wage, then petrol in Australia is relatively cheap.
The excise raises some $20 billion p.a. The price of petrol is now relatively low ($1.28 per litre). This is the lowest since 2005 (aside from the post-GFC price fall to to $1.20 in 2009). Inflation is virtually non-existent.
A 10% increase in the excise would, after the sticker shock wore off, be a fine idea.
Of course, the brilliance of W&D's idea is drowned in the steamy swamp of suicidal political ideas. A place in which Turnbull et al seem already to find themselves flailing.
Petrol excise was originally planned to pay for national road and infrastructure projects and repair. But never let fine principles stand between a Treasurer and a pile of cash (ref. superannuation). Some 75% of excise revenue goes into the black hole of general revenue.