Queensland Fuel Rebate

Queenslanders are about to lose their fuel rebate, and the spin is in full gear.  The most blatant spin I’ve seen is from this news article titled, “Fuel raiders force subsidy scrapping“.  It’s wrong on multiple levels.

Firstly, the scheme is not a subsidy but a rebate (since the levy is a federal tax, the rates cannot vary by state as they used to.)

Secondly, not only is Bligh no doubt overstating the number of “border-hoppers”, but the rebate is only eight cents a litre – which doesn’t even cover what they get back in GST.  In other words, the Queensland government makes profit for every NSW resident who hops the border to buy their petrol.  So, either the Bligh government is lying about their reasons, or they are seriously incompetent.

But then, we had this pearler (emphasis mine):

“But it will also save taxpayers more than $2.4 billion over four years as part of our strong plan to regain our Triple A credit rating and restore the budget surplus.”

Got that?  Making taxpayers fork over an extra $2.4b is saving them money!