Federal budget 2022: What fuel excise cuts mean for the Wimmera

The price of fuel was one of the biggest talking points from Tuesday night's budget, with the federal government pledging to cut the fuel excise in half, from 44c a litre to 22c.

The budget will also contain a one-off payment of $420 to low to middle income earners, and a $250 payment to pensioners, veterans and other concession card holders.

Uniting Vic.Tas chief executive Bronwyn Pike said temporary cuts would do little to ease the financial strain on household budgets.

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"A one-off payment to a select group of low-income earners won't address the ongoing financial hardship and poverty facing so many households," Ms Pike said.

"We were hoping the Budget would finally raise income support payments to a rate which affords people a basic standard of living.

"Wages are stagnant, but the cost of living is rising all the time, so we needed to see more than just band-aid solutions.

"Every day, families have to make impossible choices between paying the rent, paying the electricity or gas bill or putting food on the table. These are families living day to day, week to week."

The rising cost of fuel has also had an effect on community groups and sporting clubs, who often have to travel vast distances and bare the brunt of associated costs.

Nhill & District Sporting Club president Dom Colombera said the fuel relief would be a tremendous help when the football season gets underway.

"It's a bit of relief, if the excise is relieved it might encourage more numbers to come to away games," Mr Colombera said.

Being over 70km away from Horsham, Nhill teams have to make some of the longest journeys each weekend in the WFNL.

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"The cost of fuel is massive, because we all travel in our own time, in our own cars," Mr Colombera said.

"People carpool to make things a little bit better, but Ararat's 180km or so away from us.

"We have a bus, but the club still has to pay for fuel for the bus... it's incredibly difficult."

While the club sends a contingent to away games including players and committee members, Mr Colombera said cutting the fuel excise might encourage those club members who might not originally travel to make a trip.

"Obviously the players will be going regardless, but those parents or players who might choose not to watch might decide to," Mr Colombera said.

"And vice versa for clubs coming to Nhill."

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