Pot off the heel of the budget, Aussie drivers could save around seven hundred and fifty dollars on petrol under a new coalition pledge to half the fuel excise for twelve months. Peter Dutton will officially announce the plan in his Budget reply speech tonight. Expected to cost around six billion dollars. As well as helping Ossie save mister Dutton says the policy will have positive knock on effects throughout the economy as well. For more, we're joined by a founder of fort Lake Asset Management, doctor Christian Baylis Greatsavy with us. First off, what's your take on this policy? Will it work? Well?

Pot off the heel of the budget, Aussie drivers could save around seven hundred and fifty dollars on petrol under a new coalition pledge to half the fuel excise for twelve months. Peter Dutton will officially announce the plan in his Budget reply speech tonight. Expected to cost around six billion dollars. As well as helping Ossie save mister Dutton says the policy will have positive knock on effects throughout the economy as well. For more, we're joined by a founder of fort Lake Asset Management, doctor Christian Baylis Greatsavy with us. First off, what's your take on this policy? Will it work? Well?

Look, it will provide a sugar hit to the economy. It's immediate and I think when you're comparing it to the tax cuts, which is a little bit like comparing apples and oranges, one will hit the pockets of consumers straight away. A lot of people prefer that prefer the immediate relief as opposed to the tax cuts. They come in fifteen months at a much bigger cost to the budget seventeen billion over five years for the tax cuts, six billion for the excise relief. Ultimately, we do have a fiscal expenditure problem. I mean, fiscally, we've we've grown our expenditure by six percent. That's on part with some of the more dislocated economic periods that we've had as well, So that was a big surprise in the budget. We've got to get that under control. So ultimately, you know, we've got to think about fiscal restraint, but we've also got to think about providing cost of living real life.

Look, it will provide a sugar hit to the economy. It's immediate and I think when you're comparing it to the tax cuts, which is a little bit like comparing apples and oranges, one will hit the pockets of consumers straight away. A lot of people prefer that prefer the immediate relief as opposed to the tax cuts. They come in fifteen months at a much bigger cost to the budget seventeen billion over five years for the tax cuts, six billion for the excise relief. Ultimately, we do have a fiscal expenditure problem. I mean, fiscally, we've we've grown our expenditure by six percent. That's on part with some of the more dislocated economic periods that we've had as well, So that was a big surprise in the budget. We've got to get that under control. So ultimately, you know, we've got to think about fiscal restraint, but we've also got to think about providing cost of living real life.

Yeah, can we afford it? I mean, we heard Jim Chalmers talking about deficits for the next ten years. Let's talk about it being inflationary potentially, not while it's in place, but twelve months from now. We saw in twenty twenty two, the Coalition actually brought this in in March, just before the election. They didn't win that election. It increased inflation by point two five percent. However, things were trending up at that time.

Yeah, can we afford it? I mean, we heard Jim Chalmers talking about deficits for the next ten years. Let's talk about it being inflationary potentially, not while it's in place, but twelve months from now. We saw in twenty twenty two, the Coalition actually brought this in in March, just before the election. They didn't win that election. It increased inflation by point two five percent. However, things were trending up at that time.

Yeah, Well, like any subsidy, we've also seen that in the first home owners grant. Whenever you put a whenever you put relief onto something, it increases the amount of demand. And you've also always got a factor that in so it will reduce headline inflation because it will what we call administered inflation immediately. But then what you do is you get this hockey stick type profile in the price of of petrol and these sorts of things, because people ultimately will drive more and spend more on that type of commodity.

Yeah, Well, like any subsidy, we've also seen that in the first home owners grant. Whenever you put a whenever you put relief onto something, it increases the amount of demand. And you've also always got a factor that in so it will reduce headline inflation because it will what we call administered inflation immediately. But then what you do is you get this hockey stick type profile in the price of of petrol and these sorts of things, because people ultimately will drive more and spend more on that type of commodity.

Six billion dollars out of the national purse. Can we afford it?

Six billion dollars out of the national purse. Can we afford it?

Well, look, we really can't afford too much at the moment. We're running pretty large structural deficits. As we said, for the next ten years. We've ultimately got to get spending under control. We've got things like the NDIS, Medicare, all of these things which are becoming huge burdens on the budget. But ultimately we've got to provide. On the other hand, we've got to provide cost of living relief to people. So everyone's screaming out for more money and the government always says yes. At some point we have to say no. Look, we've we've got to restrain ourselves.

Well, look, we really can't afford too much at the moment. We're running pretty large structural deficits. As we said, for the next ten years. We've ultimately got to get spending under control. We've got things like the NDIS, Medicare, all of these things which are becoming huge burdens on the budget. But ultimately we've got to provide. On the other hand, we've got to provide cost of living relief to people. So everyone's screaming out for more money and the government always says yes. At some point we have to say no. Look, we've we've got to restrain ourselves.

And this one, particularly, the hits keep coming for Tesla owners. Thanks Christian, appreciate you. Is that

And this one, particularly, the hits keep coming for Tesla owners. Thanks Christian, appreciate you. Is that