Businesses to benefit from fuel excise cut, workers demand more support

The Health Services Union (HSU) has called on employers to provide more help for workers to deal with the financial pressures of the fuel crisis.

In light of the fuel crisis and the subsequent slashing of the fuel excise, health workers called for free parking, expedited motor vehicle allowance increases, rostering flexibility based on public transport availability, and urgent action to address the casual workforce shortages resulting from rising fuel costs.

HSU national secretary Lloyd Williams said: “When you’ve got casual workers weighing up whether it’s worth taking a shift, there’s a serious problem that could have terrible ramifications for some of the most vulnerable people in society.”

Along with the health sector, the construction industry also stands to miss out on the benefits of work-from-home (WFH) arrangements. In February, the Housing Industry Association spoke out against national reforms to allow for the legislated right to work from home under the Fair Work Amendment (Right to Work from Home) Bill 2025, proposed by the Federal Parliament on 5 November 2025.

Following a meeting of the national cabinet on Monday (30 March), the federal government announced a halving of the fuel excise and an additional 10.9 per cent cut for three months between 1 April and 30 June, reducing the cost of fuel by 26.3¢ per litre in line with its National Fuel Security Plan (released on Monday).

“We expect …. for the further cut in the excise under the proposal announced today [to also be passed on to customers], so that retail petrol and diesel prices should reduce initially by about 26.3¢ per litre and ultimately by 32¢ per litre, from what they would otherwise have been,” Australian Competition and Consumer Commission (ACCC) chair Gina Cass-Gottlieb said.

Williams said: “The federal government’s decision to halve the fuel excise was a welcome step, now it’s time for employers to act to relieve pressure on an essential workforce.”

“We need governments and employers to recognise that a generic response to this crisis is not enough for workers in this sector.”

HSU represents over 110,000 members who work in aged care, ambulance services, community health, disability, mental health, pathology, private practice, and public and private hospitals.

“Turning up is getting harder and more expensive by the day, and the people who depend on them can’t afford for that to become a reason workers don’t show up at all,” Williams said.

The Victorian government has free transport in place for a month, and the Tasmanian government is offering free public transport to Tasmanians until 1 July. Further, on Wednesday (1 April), the ACT government halved the maximum monthly cap on the number of paid trips on public transport.

National coordination

Australian Industry Group chief executive Innes Willox said: “A nationally coordinated approach, with support from the states to manage the consequences of disruption in fuel and industrial markets, is what is required as challenges change and grow in coming [sic] months.”

“The government has an unenviable task to deliver relief and support across the economy, which is already soft, without further fuelling inflation and forcing the Reserve Bank of Australia to increase interest rates, plus deal with a fiscal balance sheet that is already under strain.”

On Thursday (2 April), the federal government allocated $6.15 billion for concessional loans aimed at funding local manufacturing and supply chain businesses. Under its Economic Resilience Program (ERP), it will provide zero-interest loans for fuel, fertiliser and over critical supply chain businesses.

“If and when industries are seriously impacted by the crisis – whether for fuel, fertiliser, plastics or other products – there will be a role for government to step in and support continuity. [The] announcement on concessional loans is an important part of ensuring all tools are on the table,” Willox said.

“Targeted support to impacted industries, concessional loans and fuel reductions should help alleviate some of the acute supply chain pressures caused [by] the Middle East crisis.”

Council of Small Business Organisations Australia (COSBOA) chief executive Skye Cappuccio called the federal government’s move to cut the fuel excise practical and proportionate, lauding the temporary relief measures implemented by the Australian Taxation Office: payment flexibility, remission of penalties, and more tailored compliance.

“We’re clear on what matters – protecting small business cash flow, ensuring relief flows through, and being ready to act if pressures intensify,” Cappuccio said.

“Small businesses are not just critical to our economy – they are the social glue that holds communities together, supporting local jobs and local people every day.”