Almost four out of five Australians say they are concerned about the Federal Government’s proposed tax on the cleaner, greener alternative fuel LPG - a tax that could send the cost of the green transition fuel sky rocketing, see taxi fares rise and cripple Australia’s fragile LPG industry.

The independent survey of more than 1000 voters, commissioned by peak industry group LPG Australia, also found that almost three quarters of consumers want their Federal MP to vote against the tax.

The survey covered the electorates of the key Independent MPs, select regional MPs and those in lower socio economic areas where cost of transport and living are hot button voter issues.

In electorates such as Lyne (Independent MP, Mr Rob Oakeshott) nearly one third of consumers said they drive an LPG-fuelled car. Almost two-thirds of Australians who have taken up the Government’s LPG conversion grants in the past four years live in outer metropolitan and regional/rural communities. Even those consumers who don’t use LPG directly were concerned (63% and 42% very concerned) about the proposed tax.

“Unlike the mining tax, which many people see as a penalty (rightly or wrongly) against big business, this tax is seen as an absolute punishment on fellow working families - families, who want and need the cheaper transport option, and who were encouraged to switch because it is a considerably greener fuel too, says the CEO of LPG Australia, Mr Michael Carmody.

Mr Carmody says if the Government goes ahead with its plans to tax LPG (due to come into effect in December 2011). It will drive the cost of LPG upwards and remove LPG as an affordable option for Australians to use as a greenhouse-friendly transitional fuel.”

LPG cars emit up to 13% less harmful carbon emissions than those run on petrol and diesel and importantly, for the 700,000 families and small businesses who rely on it, LPG costs up to 50% less at the bowser than petrol.

“LPG Australia is working with consumer organisations and the taxi, courier and public transport and the LPG manufacturing and retail sectors to demonstrate to the Government the unintended consequences of such an ill considered tax,” said Mr Carmody.

The survey follows “town hall”-style meetings in Tamworth and Hobart attended by representatives of consumer groups, small business, agricultural businesses, taxi fleet owners and the LPG industry. Out of these meetings, concerned community and business leaders signed a communiqué calling on the Government to rethink the tax before the damaging unintended consequences are realised.

“We believe the Government will realise that continuing incentives for LPG conversions and removing the threat of a tax will deliver a three way win for families, the economy and the environment,” said Mr Carmody.