Govt to model impact of petrol tax

The Abbott government is facing internal questions about the return of regular petrol tax hikes. Source: AAP

THE federal government is to model the impact of fuel tax rises after concerns were raised in the coalition party room.

FUEL excise indexation is due to resume in August, following a decision made in the May federal budget.

Coalition MPs on Tuesday approved four pieces of legislation to allow it to go ahead.The laws will soon go to parliament for approval.Treasurer Joe Hockey was asked at Tuesday's meeting of the Nationals and Liberals in Canberra whether he could get his department to model what impact it would have on people in rural and regional areas.Another MP told the meeting it was important that the government clarify the main reason behind the tax change, which is to boost spending on roads.Mr Hockey said he would have the modelling done.Prime Minister Tony Abbott told the meeting that every measure in the budget was necessary, justifiable and important.He said the government's job was to be firm, stick together and stay the course.All the Labor opposition was offering was a "long despairing screech", he said.Facing criticism from the local government sector over budget cuts, Deputy Prime Minister Warren Truss told the meeting every level of government needed to bear its share of the burden.Foreign Minister Julie Bishop said the Labor Party had actively undermined the national interest by being critical of the prime minister's visit to North America.The Liberal Party will put forward Stephen Parry as its nominee to replace John Hogg as Senate president in July.Senator David Bushby will be chief Senate whip, while Senator Anne Ruston and Senator David Fawcett will be deputy whips.

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