The Council for the Australian Federation (CAF) met on 2 April 2026 and agreed to return the anticipated GST uplift on elevated fuel prices to Australians by supporting the Commonwealth to further reduce the fuel excise.

First Ministers recognised that Australians are struggling with the price of fuel. This impact is being felt heavily in critical industries that rely on fuel, like transport, agriculture, and mining, as well as by ordinary Australians, especially in the regions.

First Ministers agreed that state and territory governments should not benefit from the extra GST paid on higher fuel prices but should instead ensure that this amount is passed back to the community in a way that supports them at a challenging time. This reflects the commitment made by First Ministers at National Cabinet on 30 March 2026.

With the agreement of all First Ministers, the Chair of CAF, the Hon Roger Cook MLA, will today write to the Prime Minister to convey CAF’s support for a contribution of up to $400 million to a reduction in the fuel excise of 5.7 cents during the June quarter. This is in addition to the 26.3 cent reduction already announced by the Commonwealth Government.

First Ministers agreed that this was the most sensible and practical way of passing the anticipated GST uplift back to Australians as quickly as possible and provide additional relief to families, farmers and businesses.