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New fuel support package to ease petrol costs for struggling families

Struggling families get relief as the Government rolls out weekly fuel payments. But will it last long enough to offset soaring petrol prices?

The image shows a poster with text and images that outlines the American Rescue Plan, which...
The image shows a poster with text and images that outlines the American Rescue Plan, which provides assistance for those in need. The poster includes a blue background with white text and a white and blue graphic of a house with a red heart in the center. The text reads "American Rescue Plan" and "Help is Here" in bold, white lettering. The graphic also includes a picture of a person with their arms outstretched, symbolizing the need for assistance.

New fuel support package to ease petrol costs for struggling families

The Government has unveiled a new fuel support package to help families struggling with rising petrol costs. Announced on Tuesday, the scheme will provide weekly payments to eligible households starting from 7 April. Officials estimate the total cost could reach up to $373 million, funded from the Budget 2026 operating allowance.

Around 143,000 households will receive the full $50 weekly payment. To qualify, families must meet the in-work tax credit criteria, including working at least 30 hours a week as a couple or 20 hours as a single parent. They must also not be receiving a main benefit and earn below the income thresholds—$89,000 for one child, $112,000 for two, and $135,000 for three.

A further 14,000 households will get a reduced payment. The support will continue until the price of 91 petrol stays below $3 a litre for four straight weeks or for a full year, whichever happens first. Higher petrol prices may also bring the Government an extra $180 million in GST revenue. Meanwhile, the Child Poverty Action Group has called for an increase to the winter energy payment, arguing that more support is needed for low-income families.

The scheme targets working families who do not receive a main benefit but still face financial pressure from rising fuel costs. Payments will begin next month, with the duration depending on petrol price trends. The Government has allocated funding from the 2026 budget to cover the programme's expenses.

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