Australia’s travel and tourism sector is welcoming new fuel tax cuts as a timely boost for Easter travel, although transport leaders warn more aviation support is needed as jet fuel prices remain high.
The Australian Government will halve the fuel excise on petrol and diesel for three months from 1 April to 30 June 2026, reducing costs by 26.3 cents per litre.
For travellers, that translates to savings of nearly $19 on a 65-litre tank, a fuel tax cuts incentive expected to encourage more Aussies to proceed with road trips and regional holidays over the Easter and school holiday period.
The government will also reduce the heavy vehicle road user charge to zero for three months and delay its next increase by six months, easing supply chain pressures and supporting tourism operators.
These measures come amid broader cost-of-living pressures, with some states also introducing free public transport initiatives to offset rising fuel prices linked to the Middle East conflict.
Federal Transport Minister Catherine King encouraged Australians to consider public transport where possible to conserve fuel supplies, particularly for regional communities.
Domestic travel plans back on track
Fuel tax cuts are expected to provide an immediate confidence boost for travellers weighing up holiday plans, particularly those considering self-drive and regional itineraries.
Tourism & Transport Forum (TTF) Australia CEO Margy Osmond said the move would help ease financial pressure and support booking conversion.
“We’ve been hearing from operators across the country that rising fuel prices are causing Australians to rethink their travel plans or choose to stay closer to home,” she said.
“This announcement will help reduce prices, taking some of that pressure off household budgets and ensure more people take that family trip at Easter.”
Impacts on regional tourism
Osmond said the fuel tax cuts would be particularly important for regional tourism operators, who have been severely impacted by higher fuel costs.
“Regional communities have been on the front line of this fuel price surge with fewer visitors willing to make longer journeys or fear getting stuck in regional areas due to fuel shortages,” she said.
“Measures like this will go a long way to supporting the flow of fuel through the supply chain, drive visitation and support regional businesses that depend on tourism dollars.”
More support for the aviation sector
Osmond said further action was needed to address soaring aviation fuel costs, which continue to place significant pressure on airlines and rising airfares.
“While this is a very welcome step, it doesn’t fully address the challenges facing the aviation sector, where high jet fuel prices are continuing to drive up the cost of flying,” she said.
“If we want to see a full recovery in tourism and keep travel accessible for Australians, we also need to look at measures that support the aviation industry.”
KARRYON UNPACKS: Fuel tax cuts in Australia may unlock a short-term domestic travel surge, but rising airfare costs highlight the growing divide between self-drive holidays and flying, reshaping how travellers will choose to travel in 2026.
