The tourism industry is calling for the fuel excise cut to be extended until at least the end of the July school holiday period, with new polling showing higher fuel prices would force millions of
Australians to scale back their travel plans.
New research commissioned by the Tourism & Transport Forum (TTF) Australia reveals that if fuel prices rise significantly from 1 July 2026, when the fuel excise cut is due to expire, more than one-third (37%) of Australians will take fewer road trips.
The findings come as school holiday travel begins across Australia from 20 June, with holiday periods extending through to 26 July in some states and territories.
TTF CEO Margy Osmond said rising fuel prices could put the brakes on winter travel plans just as regional tourism operators enter one of their most important periods of the year.
“The winter school holidays are a crucial time for many regional tourism businesses, whether it’s families piling into the car for a trip to the snow or heading north to sunny Queensland, Western Australia and the Northern Territory in search of warmer weather and spectacular outdoor experiences,” she said.
“If fuel prices jump just as families are preparing to head away, many Australians will simply decide they can’t afford to travel as far or as often.
“Extending the fuel excise cut until the end of July would help maintain travel demand through the school holidays and help regional operators at a time when every visitor counts.”
The nationally representative survey of more than 1,000 Australians found that if fuel prices increase significantly from July, 28% would choose destinations closer to home, while 27% would delay their travel plans altogether.
More than one in five Australians (21%) said they would reduce spending on accommodation and dining, while 13% would switch to alternative forms of transport such as buses.
The research also found younger Australians are more likely than older Australians to adjust their travel plans in response to higher fuel prices from July, including by choosing destinations closer to home, reducing trip-related spending, and considering alternative transport options.
Ms Osmond said a nationally consistent fuel information platform would complement any extension of the fuel excise cut by helping travellers find the most affordable fuel options along
their journey.
“Making fuel price information easier to access is also critical to helping families manage travel costs and give them greater confidence to get on the road and visit regional Australia this winter,” she said.
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