AAA disappointed by federal budget

The Australian Automobile Association (AAA) has expressed annoyance with the results of the federal budget, released earlier this week (May 13).

In the announcement from Treasurer Joe Hockey, the government plans to reintroduce twice-yearly increases to the fuel excise in line with inflation from August 1.

The budget outlines how the excise rise will help to pay for improved road infrastructure, but AAA Chief Executive Andrew McKellar said it isn't fair.

"Motorists expected a fairer deal from this Budget, they are sick and tired of paying taxes and not seeing a fair return on their investment," he said.

"While there is significant investment in roads and infrastructure in this Budget, and the government has opened the door to having a direct link between motoring taxes and road funding, it falls well short of what motorists want".

The price hike is expected to collect $2.4 billion over the next four years and result in a one cent per litre rise to overall petrol prices for fleet services. The Sydney Morning Herald is reporting that the Greens have backed the proposal, which means it should pass the Senate and become law.

Mr Hockey, speaking at the Conservative Club in Brisbane's City Hall this week, confirmed all the money raised will go to roading projects and motorists will get better roads as compensation? for paying extra for petrol.

Since 2001, the indexation has been frozen at 38.1 cents per litre - something Mr McKellar thinks is enough.

"Motorists already pay a significant amount of tax and have not been getting fair value for their money," he said.

Fleet managers that are worried about how the fuel excise increase will impact their own budgets should consider investing in fleet management software.

The software can manage low-mileage vehicles and fuel consumption and make sure they are the first ones booked. This can dramatically reduce fleet prices with the changes announced.