Fuel excise hike bills pass parliament

The government has legislated fuel excise indexation with the support of Labor.

The fuel excise will be indexed twice-yearly to inflation after government legislation cleared parliament with Labor backing.

The $3.6 billion revenue-raising measure will add about 40 cents initially to the weekly petrol bill of the average motorist.

Government senators Cory Bernardi and Ian Macdonald opposed the measure but were not required to cross the floor and vote with the Greens on Wednesday.