Bills Digest no. 117 2005–06
Fuel Tax Bill 2006
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Contact Officer & Copyright Details
Date introduced: 29 March 2006
House: House of
Commencement: 1 July 2006
To implement a system of credits to offset partially or fully
the excise that some taxpayers pay on fuels, and to lay the
groundwork for extending the tax net to alternative fuels.
Most fuels are subject to both excise (when the fuel is produced
in Australia) or customs duty (when the fuel is imported) and to
the goods and services tax (GST). The Fuel Tax Bill 2006 the Bill
relates only to excise and customs duty. The relevant Acts for the
imposition of excise are the
Excise Act 1901 and the
Excise Tariff Act 1921 and, for customs duty, the
Customs Act 1901 and the
Customs Tariff Act 1995.
The Bill in large measure continues the Energy Grants
Credits Scheme (EGCS) whose legislative authority is the
Energy Grants (Credits) Scheme Act 2003. However, the Bill
extends the remit of the EGCS to include additional fuels and
business activities.(1) The EGCS which came into effect
on 1 July 2003 provides grants for business use of:
The grants allow users to recover, fully or partially, excise
(and customs duty) on fuels. The Australian Taxation Office, which
administers the EGCS, publishes the
grant rates on its website.(3)
The purpose of the off-road component seems primarily to be to
reduce costs for key sectors, notably agriculture and mining. The
purpose of the on-road component is:
to reduce transport costs, particularly for
regional and rural Australia where costs are more pronounced
The on-road component is thus a subsidy to regional areas. For
environmental reasons, the on-road use of diesel in vehicles under
20 tonnes wholly in urban areas is generally not eligible.
The EGCS replaced the Diesel Fuel Rebate Scheme (DFRS) and the
Diesel and Alternative Fuels Grants Scheme (DAFGS). With some
changes, the DFRS became the off-road component of the EGCS and the
DAFGS the on-road component. The DAFGS arose from the Government s
undertakings under its Measures
for a Better Environment program.(5)
The EGCS has several deficiencies.
First, it discriminates among activities. Agricultural
activities are particularly favoured. For example, all on-road
trips made as part of a primary production business are eligible.
No other industries benefit from this concession, which is an
implicit subsidy to primary production.
Second, the EGCS discriminates among fuels: there is one list of
eligible fuels for road transport activities and another for
other activities.(6) Further, the scheme discriminates
among fuels used in road transport; for example, the grant for the
on-road use of diesel is 18.51 cents per litre but there is no
grant for petrol. Alternative fuels are excise-exempt (for example,
liquefied petroleum gas) or are effectively excise-free (for
example, ethanol and biodiesel) and receive an on-road credit to
maintain pre-GST price relativities between petrol and diesel.
Finally, the EGCS is complicated, and this imposes compliance
and administration costs on business and the Australian Taxation
Office. For example, in the on-road scheme, eligibility depends on
the vehicle s gross vehicle mass (GVM) and the trips it undertakes.
All vehicles over 20 tonnes are eligible for a grant. In the case
of vehicles that are at least 4.5 tonnes but less than 20 tonnes
GVM, eligible trips are those from a point outside a metropolitan
area to another point outside a metropolitan area, or from a point
outside a metropolitan area to a point inside a metropolitan area
(or vice versa). Trips from one point inside a metropolitan area to
another point inside that metropolitan area are not eligible.
The Bill is a key element in proposed broader reforms to fuel
taxes. The reforms include establishing long-term excise (and
customs duty) rates on fuels, taxing currently untaxed fuels, and a
new system for credits for tax paid on fuels. The Bill implements
the fuel tax credits system. The Bill does not implement the
proposed excise (and customs duty) rates or the amounts of the fuel
The Bill s proposals include replacing, on
1 July 2006, all existing rebates and subsidies including
the EGCS with a single system of fuel tax credits. There are two
components to the existing system whereby the amount of excise or
customs duty is reduced. The EGCS is the main component; in 2005
06, spending on the EGCS is estimated to be more than $3.7
billion.(7) The other component is remissions, refunds
and rebates of excise (and customs duties), which the
Explanatory Memorandum describes as follows:
1.15 Section 78 of the Excise Act 1901
allows remissions, rebates and refunds of excise duty in prescribed
circumstances and subject to prescribed conditions and
restrictions. A similar provision is contained in the Customs
1.16 A remission is a mechanism that allows
holders of a remission certificate to obtain prescribed fuel
products fuel tax-free for use in prescribed circumstances.
Remission and refunds commonly relate to solvent and burner fuel
applications, kerosene for some specific fuel uses, and diesel and
petrol substitutes for non-fuel uses.(8)
The Government has made four announcements about the reform of
fuel excise rates and fuel tax credits:
- in the 2003 04 Budget, the Government outlined the
- on 16 December 2003, the Prime Minister elaborated on the
- in March 2004, the Government extended the transition path for
fuels becoming subject to excise (see below), and
- on 15 June 2004, the Government released the energy
white paper titled Securing
Australia s Energy Future and the accompanying Fuel Excise
The white paper proposed a credit scheme to replace the EGCS
from 1 July 2006. The
Fuel Tax Credit Reform Discussion Paper that Treasury
released on 27 May 2005 elaborated on this
In a separate but related development, Treasury issued the
Review of the Schedule to the Excise Tariff Act. Industry
discussion paper.(13) This proposed a
wide-ranging review of the Excise Tariff Act 1921
(discussed below). The Excise Tariff Act 1921 lists the
goods subject to excise (including fuels) and the applicable
Key features of the proposed reforms are:
- excise will fall into four bands
- the bands will be based on energy content, namely, high, medium
and low; the fourth band is for other fuels such as compressed
- alternative fuels that are now explicitly excise-exempt
(liquefied petroleum gas, compressed natural gas and liquefied
natural gas) or effectively so (biodiesel and ethanol) will be
subject to excise from 1 July 2011.(14)
- excise on alternative fuels will be phased in. Beginning 1 July
2011, credits will be paid that reduce effective rates below the
final rates, which will apply from 1 July 2015
- the final rates on alternative fuels will be half of what they
would be if rates were based on energy content (the so-called
discount for alternative fuels)
- grants will continue to apply to alternative fuels under the
EGCS until 2010. Beginning on 1 July 2006 and ending on 30 June
2010, the grants will be progressively reduced to zero
- from 1 July 2012, all off-road business use of all
fuels will be effectively excise-free
- this measure will be introduced in stages. A credit of half of
the fuel excise incurred in all currently ineligible off-road
activities will be available between 1 July 2008 and 30
June 2012; a full credit will be available from
1 July 2012. All fuels, that is, diesel and petrol used
in currently eligible activities will receive a full credit from 1
- from 1 July 2006, the credit paid to users of diesel in
on-road vehicles weighing over 4.5 tonnes GVM will be
extended to all excisable fuels
- the metropolitan boundaries governing eligibility for this
credit will be abolished making all journeys in these vehicles
eligible for the credit
- the partial excise paid on fuels used in heavy vehicles will be
declared an official, non-hypothecated road-user charge (see below)
from 1 July 2006, and the charge will be set consistent with future
determinations of the National Transport Commission
- all private and business use of all fuels used to generate
electricity will be effectively excise-free from 1 July 2006
- the excise currently levied on burner fuels such as heating oil
and kerosene will be effectively removed from 1 July 2006.
Under fuel tax reform the effective application of
fuel tax will be limited to:
- business use of fuel in on-road applications in motor vehicles
with a gross vehicle mass of 4.5 tonnes or less;
- business use on-road in motor vehicles with a gross vehicle
mass of more than 4.5 tonnes (with the exception of a carve-out
intending to preserve previous entitlements for eligible fuel use
in vehicles with a gross vehicle mass of 4.5 tonnes) but only to
the extent of the road-user charge;
- for private use on-road in motor vehicles and in certain
off-road applications; and
- aviation fuels (where tax is imposed for cost recovery
The proposed fuel tax credit system is summarised in Table 1.1
in the Explanatory Memorandum. This is reproduced as Table
Table 1: Application of fuel tax on 1
Use on roads
GVM ≤ 4.5 tonnes
Fuel tax payable
Full fuel tax payable
GVM > 4.5 tonnes
Fuel tax, payable up to
amount of road-user charge, the rest is offset by a fuel tax
Fuel tax fully offset by fuel tax credit
Fuel tax fully offset by a
fuel tax credit
Burner applications and
Effectively fuel tax-free
via a fuel tax credit to business suppliers
Full fuel tax payable
Source: Explanatory Memorandum, p. 11.
As noted, alternative fuels that are now explicitly
excise-exempt will be subject to excise from 1 July 2011.
The Bill seeks to establish the framework for implementing this
1.17 It is intended that from 1 July 2011, this
Bill will also provide the legislative basis for taxing certain
liquefied and compressed gaseous fuels, when fuel tax is levied on
liquefied petroleum gas, liquefied natural gas and compressed
natural gas for the first time.(16)
In the part of the Review of the Schedule to the Excise
Tariff Act that deals with fuels, it was noted:
The Government s decision in relation to fuel tax
reform includes replacing the system of administering excise
concessions for business with credits claimable via the Business
Activity Statement (BAS), commencing 1 July 2006. As set out by the
Treasurer on 15 June 2004, the new business credit system will
replace all existing rebates and subsidies. In this context,
subsidies include concessional and free rates of excise duty. It
should be noted that the principles adopted by the Government for
reform of fuel taxes apply to all products that are classified in
the fuels section of the excise tariff (items 11 and 12). This
therefore means that all fuels will be subjected to the full rate
of excise (other than aviation fuels and petroleum-based oils),
with concessions made available through fuel tax credits.
The Bill picks up the proposals relating to businesses claiming
through their Business Activity Statements.
The following are tables of the:
- proposed fuel excise rates
- fuel tax credit rates that will apply to alternative fuels,
- the effective excise rates that is, excise less credit on
Table 2: Fuel excise rates from 1 July
High-energy content fuels:
petrol, diesel, gas to liquids, diesel, biodiesel
Mid-energy content fuels:
liquefied petroleum gas, liquefied natural gas, ethanol, dimethyl
Between 20 and 30
Low-energy content fuels:
Other: compressed natural
Between 38 and 41
(megajoules per cubic metre)
38.0 (cents per cubic
19.0 (cents per cubic
Source: Australian Government, Securing
Australia's Energy Future, Canberra, 2004, p.
Table 3: Alternative fuels credit rates to apply
from 1 July 2006 to
1 July 2010 (cents per litre)
Liquefied petroleum gas
Liquefied natural gas
Compressed natural gas
(cents per cubic metre)
Source: Treasury, Fuel Tax Credit Reform Discussion
Paper, Canberra, 2005, p. 5, and Explanatory
Table 4: Effective excise rates on alternative fuels
from 1 July 2011 (cents per
Liquefied petroleum gas, liquefied natural gas, ethanol
Compressed natural gas
Source: Explanatory Memorandum, p. 15.
Note: Rates are cents per litre except compressed natural gas
which is cents per cubic metre.
The following summarises the reform timetable.
1 July 2006
Excise on burner fuels
will be removed.
A full credit will be
provided for all fuels used in power generation.
Excise on heavy vehicles
will be converted to a road user charge.
Excise relief will be
provided for petrol and all other taxable fuels used for business
purposes in heavy vehicles.
will be removed.
Spending under the Fuel
Sales Grants Scheme will be converted to road funding.
The Petroleum Products
Freight Subsidy Scheme will end.
Access to excise credits
for those claiming more than $3 million per year will be linked to
participation in the Greenhouse Challenge programme.
Access to on-road credits
for heavy diesel vehicles will be linked with meeting one of five
emissions performance criteria designed to ensure vehicles meet the
emission standard set under the Diesel National Environment
1 July 2008
A 50 per cent credit will
be introduced for the off-road business use of taxable fuels in
activities not previously eligible for credits.
1 July 2011
Effective excise will
apply to all fuels used in an internal combustion engine, including
concessional excise for biodiesel, ethanol, liquefied petroleum
gas, liquefied natural gas and compressed natural gas. The
effective excise rates will increase over five equal annual steps,
reaching their final rates on 1 July 2015.
1 July 2012
Full credit will be
extended to all business use of all taxable fuels in all off-road
1 July 2015
Final effective fuel
excise rates will apply to all taxable fuels, including a 50 per
cent discount for alternative fuels.
Source: Australian Government, Securing Australia s Energy
Future, Canberra 2004, p. 102.
As noted, the fuel tax credits scheme will provide only partial
credits in some circumstances. They relate to the cost-recovery
arrangements for the damage that heavy trucks cause to roads.
Infrastructure costs attributable to heavy vehicle use are
recovered through national heavy vehicle charges. The charges
(which the National Transport Commission determines) have two
- a notional component of the excise on diesel, and
- an annual registration charge (which varies by truck type) and
which state governments collect.
The notional charge is effected through the EGCS. Under the
EGCS, certain business use of diesel is eligible for a grant of
18.51 cents per litre of diesel used. The grant partly offsets
the excise. The notional component is the difference between the
excise and the grant. The excise on low sulphur diesel diesel
containing 50 or fewer parts per million of sulphur is 38.143 cents
per litre so the notional component is 19.633 cents per
There is currently no formal link between the net excise paid by
heavy vehicles and the road user charge. Under the fuel tax credit
scheme, the road user charge will be formally recognised, and the
credit will be the difference between the excise paid and the road
In October 2005, the National
Transport Commission issued a
Regulatory Impact Statement dealing with proposed changes to
charges. The main consequences would have been:
- registration fees would be effectively frozen for 53 per cent
of the vehicle fleet
- an increase of less than $40 in registration fees for 44 per
cent of trucks, plus a further $16 per axle for towed trailers
- an increase of less than $3,000 over two years for B-Doubles
and road-trains (three per cent of heavy vehicles)
- a B-Double charge subsidy of between $5,500 and $7,500 to
encourage safe and efficient fleet choices, and
- a 2.1 cents per litre increase in the road user (fuel) charge;
representing a 10.5 per cent increase over the last six
The Commission s proposal would have increased registration fees
for B-doubles and road trains by about one-third, and the notional
component of the excise from 19.633 cents per litre to 22.1 cents
On 17 March 2006, the Federal Minister for Transport and
Regional Services, the Hon. Warren Truss,
announced that the Australian Government would oppose the
determination at a meeting of the Australian Transport Council
which consists of Commonwealth, and state and territory transport
ministers on the grounds that the proposed charges would
over-recover costs.(19) The Australian Transport Council
subsequently rejected the National Transport Commission s proposed
changes.(20) An editorial in the Australian
Financial Review was critical of the Australian Transport
Council s decision:
It s a depressingly familiar story. A government
agency decides on an economically sensible pricing regime only to
have politicians, acting under heavy lobbying from vested
interests, reject it. But on this occasion the politicians
concerned - state and federal transport ministers - are not just
flying in the face of economic logic. They are defying their own
policies, and the desires of their masters - the Council of
Australian Governments - to achieve an efficient freight
The National Transport Commission believed it was
implementing agreed principles that all heavy vehicle classes
should pay their own way when it recently recommended a new
charging regime for very heavy trucks. The idea was to increase
registration and fuel charges for the long, so-called, B-double
prime movers. These road monsters are cross-subsidised 21 per cent
by smaller trucks in terms of charges. Cross-subsidisation, the NTC
says rightly, is not the way to promote optimal use of roads and
Australia needs a rational national road-charging
regime, perhaps based on transport corridors, and one that is
competitively neutral not only between the size of trucks but
between road and rail. Whether that is set by the NTC or not,
transport ministers have shown they need to be kicked off the
COAG at its meeting last month asked the
Productivity Commission to examine the whole issue of efficient
pricing for road and rail infrastructure via competitively neutral
pricing. The political interference of transport ministers already
is a bad omen for the outcome of that inquiry.(21)
As noted, for environmental reasons, the on-road use of diesel
in vehicles under 20 tonnes wholly in urban areas is generally not
eligible for grants under the EGCS. Further, alternative fuels now
effectively do not attract excise but are eligible to receive an
on-road credit under the EGCS. The Bill proposes two new
- the requirement for large fuel users to be a member of the
Challenge Plus Programme, and
- vehicles using diesel fuel in on-road applications must comply
with emissions performance criteria.(22)
The Greenhouse Challenge Plus Programme is designed to:
- reduce greenhouse gas emissions
- accelerate the uptake of energy efficiency
- integrate greenhouse issues into business decision-making,
- provide more consistent reporting of greenhouse gas emissions
The Bill proposes that:
Businesses claiming over $3 million each year in
fuel tax credits will need to be members of the Greenhouse
Challenge Plus Programme. Under this programme member businesses
must measure their greenhouse gas emissions, develop action plans
for greenhouse gas abatement and report to the Government on their
The Bill also proposes that operators of diesel vehicles with a
GVM of more than 4.5 tonnes be required to meet one of four
emissions performance criteria in order to be entitled to receive
fuel tax credits. The criteria are:
- the vehicle must have been manufactured after 1 January
- the vehicle must be part of an accredited audited maintenance
- the vehicle must meet the Australian Transport Council s
in-service emission standard (referred to in the National
Environment Protection (Diesel Vehicle Emissions)
- comply with a Government-endorsed maintenance schedule which
includes an emissions component.(26)
The following is background to the Fuel Sales Grants Scheme and
the Petroleum Products Freight Subsidy Scheme.
The fuel sales grants scheme is a grant to fuel retailers for
the sale of petrol and diesel to consumers in regional and remote
areas where fuel prices are generally higher than in urban areas.
The grant is paid to fuel retailers for sales to final consumers in
defined non-metropolitan zones. This includes sales by distributors
of bulk fuel to end users such as farms and mines where the sale
occurs in a defined non-metropolitan zone. Retailers must be
registered for the scheme before they can claim a grant. Eligible
fuels are leaded and unleaded petrol and diesel including light
fuel oil, two stroke and premium unleaded.
For the non-metropolitan zone, the grant is one cent per litre.
For the remote zone the grant is two cents per litre. If fuel has
been sold consistently in a remote area at not less than $1.20 per
litre, fuel retailers may, subject to certain conditions, receive
an additional one cent per litre of fuel sold. The non-metropolitan
and remote zones have been defined using the
accessibility/remoteness index of Australia.
Fuel retailers are expected to pass on the full effect of the
grant to consumers. The Australian Competition and Consumer
Commission (ACCC) monitors petrol and diesel prices to ensure the
grant is passed on to consumers. Fuel retailers may be required to
provide detailed pricing information to the ACCC as part of its
The estimated cost of the scheme is shown in the table ($
Source: Australian Taxation Office, Portfolio Budget Statements,
Taxation Inquiry examined the Scheme and was highly
critical.(27) The Inquiry recommended that the Scheme be
abolished. The following is the relevant excerpt from the Inquiry s
6.6 Fuel Sales Grants Scheme
The Fuels Sales Grants Scheme (FSGS) provides registered
retailers with grants of one cent per litre in non-metropolitan
zones and two cents per litre in so-called remote zones; there is
an additional grant of one cent per litre where the fuel price is
consistently over $1.21. The scheme was introduced on 1 July 2000
as part of A New Tax System.
6.6.1 Problems identified
The Inquiry received considerable criticism of the scheme and
comparatively little support of it. It appears that the best that
can be said of the scheme is that it has had little noticeable
For example, the National Farmers Federation submitted:
It is arguable whether this scheme has had the
intended outcome and, further, unless this grant is indexed, as the
price of fuel increases, the extent to which it offsets the GST is
diminished. The NFF believes that the funding for the Fuel Sales
Grants Scheme could be better channelled into providing more
tangible returns of taxes to business.
The Inquiry s attention was also drawn to a number of boundary
anomalies in the application of the scheme, including instances
where service stations on the fringes of capital cities were
eligible for the grant, giving them an advantage over competitors
in close proximity.
For example, the West Australian Small Business and Enterprise
Association Inc. referred to the recent report of a State
Parliamentary Committee that had pointed to problems with the
geographic boundaries for eligibility. The West Australian
Government confirmed problems with FSGS boundaries and was
concerned that they conflicted with the administration of the State
s petroleum pricing laws.
The Premier of South Australia also identified geographic
anomalies in his submission to the Inquiry.
The Premier of Queensland supported the scheme but was not
satisfied that it compensated for the impact of the GST in rural
and remote communities when crude oil prices and thus prices of
refined product were high. It also questioned the appropriateness
of the use of the Accessibility/Remoteness Index of Australia that
had been designed for service provision purposes, since it did not
necessarily direct fuel grants to the areas experiencing the
highest fuel prices.
Another problem with the FSGS involves the eligibility of bulk
end users such as mining companies located in non-metropolitan and
remote areas. These bulk end users receive the FSGS grant even
though they also receive input tax credits on their fuel purchases.
As Treasury submitted:
The grant is also paid to business (or bulk end
users) for purchases of petrol and diesel even though the purchase
price of petrol and diesel they face wasn t affected by the GST due
to the availability of GST input tax credits for businesses.
6.6.2 Assessment and recommendation
The Inquiry is concerned at the difficulty in identifying the
benefits of the scheme to consumers in rural and remote regions.
The Inquiry notes continuing debate about whether the scheme
results in lower prices to final consumers, but is also aware that
the ACCC has found no evidence to substantiate claims that the
grants have not been passed on to consumers. The ACCC announced the
results of its investigations into the FSGS on 1 June 2001,
including the following statements:
The ACCC received several inquiries from Caltex
franchisees alleging that Caltex had altered its price support
system following the introduction of the FSG in such a way that
they were unable to pass on the FSG without cutting their own
margin. The ACCC conducted an extensive investigation into these
allegations. As a result of this investigation the ACCC did not
establish a failure to pass on the FSG to customers.
The ACCC also investigated alleged breaches by
Shell, Mobil and BP in relation to their response to the
introduction of the FSG. While the material supplied by some of the
oil majors, and in particular by Shell, may have been open to an
interpretation that the oil companies may have cut margins to their
franchisees, and in effect appropriated the FSG, on the evidence
available this could not be established.
In any case, it is not clear that any benefits accruing to
regional Australians are proportional to the level of public
expenditure, estimated to be $210 million in 2001-02, nor that this
programme is the best use of the funding.
Some interested parties were of the view that it would be
preferable for the Commonwealth to address, directly, the causes of
city-country price differentials. One option suggested to the
Inquiry was the introduction of mandatory Terminal Gate Pricing
that would ensure that the ex-refinery price was the same for all
service stations and bulk purchasers. The Inquiry was aware that
Terminal Gate Pricing was an issue that had received attention in
the ACCC inquiry into Fuel Price Variability.
The Inquiry concludes that there are anomalies arising from the
geographic boundaries determining eligibility for the lower and
higher grant rates, and that these anomalies are likely to have an
adverse effect on resource allocation and competition.
The Inquiry faced a difficult choice between:
- recommending amendments to the design of the FSGS to address
identified problems such as boundary anomalies and bulk end users;
- recommending the dismantling of the scheme, and spending the
funds saved in other ways.
Recommendation 12: Fuel Sales Grants
The Fuel Sales Grants Scheme should be discontinued from 1 July
On 22 January 2004, the then Deputy Prime Minister, the Hon.
announced that the Scheme would be phased out from 1 July 2006,
and the funds transferred to road funding.(28)
Grants under the
Petroleum Products Freight Subsidy Scheme are paid under the
States Grants (Petroleum Products) Act 1965. The Fuel
Taxation Inquiry also examined this scheme. The following is the
relevant excerpt from the Inquiry s report.
The Petroleum Products Freight Subsidy Scheme was introduced in
1965 with the purpose of reducing the prices of petroleum products
in regional areas. The scheme was abolished in
1974, reintroduced in 1978 and amended in 1983 to target assistance
at remote communities.
The scheme reimburses fuel freight costs above a Customer Pays
Margin , presently 15.3 cents per litre. The margin increased over
time from 0.44 cents per litre in 1981‑82, increasingly
limiting the application of the subsidy to more remote areas.
Subsidies are paid to fuel distributors who are required to sign
undertakings that they will pass on the savings to their
Subsidies are delivered through State schemes, with programme
funding provided to the States by the Commonwealth. The scheme
presently costs the Commonwealth around $3.5 million per annum, a
fraction of its expenditure of $148 million in
The majority of eligible locations are in Queensland, Western
Australia and the Northern Territory; many are remote indigenous
communities. There are no eligible communities in Victoria,
Tasmania or the Australian Capital Territory and only one each in
New South Wales (Lord Howe Island) and South Australia (Amata).
The value of the subsidy varies by location. Generally speaking,
island communities receive substantial subsidies whereas remote
coastal or inland subsidies may be worth just a few cents per litre
or even less than one cent per litre. For example:
- the highest levels of subsidy are paid to Lord Howe Island
(26.5 cents per litre for petrol and 29.7 cents per litre for
avgas) and Badu Island in Queensland (up to 19.7 cents per litre
for petrol and up to 37.6 cents per litre for avgas sent by
- the lowest level of subsidy is paid to Arapunya in the Northern
Territory which receives 0.1 cents per litre on avtur only, while
Port Hedland in Western Australia receives 0.2 cents per litre
on aviation fuels only; and
- Cape York, the northern extremity of the continent, is eligible
for 4.7 cents per litre on petrol and diesel and 5.2
cents per litre on aviation fuels.
The Northern Territory and Queensland Governments supported
continuation of the scheme.
The Inquiry received no comments about the scheme in its
consultations around Australia.
Since the subsidy is paid to oil distribution companies, it is
not apparent that the ultimate beneficiaries remote communities are
necessarily aware of its existence. This may not hold true for some
remote island communities where the subsidy has a high value.
The design of the scheme is an inherent disincentive for the
adoption of more efficient and less expensive modes of fuel
transport to remote communities. Once freight rates exceed the
Customer Pays Margin, the Commonwealth meets all freight costs.
The freight subsidy does not offset other high costs involved in
supplying fuel to remote communities, such as reseller margins.
However, even if the subsidies are not well targeted, it is hard to
deny that they make remote fuel distribution cheaper than it would
In 1999, responsibility for administering the scheme was
transferred from Customs to AusIndustry. This coincided with the
transfer of responsibility for diesel rebates to the ATO. It is
unclear to the Inquiry why the programme is not being administered
by the ATO along with other fuel programmes.
- The programme is not primarily an industry assistance scheme,
though fuel‑using industries in remote areas may benefit
incidentally from the subsidy.
- AusIndustry does not have an auditing/enforcement capacity for
a remote communities programme, whereas there may be economies of
scale in administering the programme with other fuel programmes in
Until 1999, the petroleum products industry was regulated by the
Prices Surveillance Authority and its successor, the ACCC. It was
easy to obtain reliable data for calculating subsidies in this
environment. Oil companies provided information to the ACCC on the
freight costs of transporting eligible petroleum products from
refining ports and seaboard terminals to various points of sale
including remote locations.
Now that the ACCC s formal regulatory oversight has ceased,
there is no longer a mechanism for establishing the freight
differentials on which subsidy rates are based, and the scheme is
currently operating using outdated information.
The Inquiry is concerned that there has not been a recent
assessment of the effectiveness of the Petroleum Products Freight
In any case, the current justification for providing assistance
of this type is questionable. Remote communities face a range of
higher living costs, and the Inquiry cannot see why just one cost
fuel freight should be the subject of a specific subsidy scheme. If
Governments State or Commonwealth want to reduce the general costs
of living, there are much better and more transparent ways of doing
Subsidising residents of, or visitors to, places like Lord Howe
Island is even less justifiable. The data on which subsidies are
determined are now of questionable accuracy. The total cost of the
subsidy is small and its administrative costs are
Recommendation 13: Petroleum Products Freight Subsidy
The Petroleum Products Freight
Subsidy Scheme should be discontinued from 1 July 2004.
Payments under the scheme fell e.g. from $147.5 million in
1981-82 to only $3.8 million in 1993-94. The amount now allocated
to the Scheme is $3.5 million annually.
The Government decided to abolish the Petroleum Products Freight
Subsidy Scheme with effect from 1 July 2006.(29)
The Australian Chamber of Commerce and Industry (ACCI) in a
submission to Treasury s Fuel Tax Credit Reform Discussion
paper, said, among other things, that:
- the proposed changes will:
- remove or reduce taxes on business inputs
- reduce the tax level on many businesses
- reduce compliance and administration costs, and
- increase the tax neutrality between different activities and
- the ACCI was generally supportive of the proposals except for
the proposal to reduce excise exemptions
- the ACCI accepted, on balance, that the business compliance
costs under the new system will be lower than under the current
- the effect on cash flows will differ, depending on the current
arrangements that taxpayers use, and
- the government should explore ways of aligning and simplifying
the transitional period for some of the
The Australian Seafood Industry Council, in its response to
the Treasury Fuel Tax Credit Reform Discussion Paper:
- noted that some members would suffer a cash flow disadvantage,
- argued that the current system whereby claimants give
permission to a third party to make and/or receive grant claims on
their behalf be maintained.(31)
KPMG noted that:
- the road transport, construction industries and remote
communities are the likely winners
- the shift to claiming credits through the Business Activity
Statement may create some transitional problems for business
- the shift from a grant scheme to a tax credit system will cause
initial administrative problems since businesses will need to align
their fuel tax credits with their GST processes, and
- another challenge for businesses will be the need to comply
with new environmental requirements in order to claim fuel tax
credits. All businesses claiming fuel tax credits will need to
comply with some basic emission control standards and large
claimants will also have to join the Greenhouse Challenge Plus
program and this may mean more comprehensive fleet management
systems will be required.(32)
The Minerals Council of Australia in its
submission to the taskforce on Reducing the Regulatory Burden
on Business stated that:
the phasing in of reductions in taxation of fuels
used as business inputs is desirable. It is possible that aspects
of the current proposals could impose an unnecessary regulatory
burden on the Australian minerals industry. To reduce the potential
for this to occur, it is desirable to ensure:
. the range of activities
eligible for credits is not restricted during the transition to the
. compliance costs are minimised
by making the administration and compliance regime (under the
umbrella of the Taxation Administration Act 1953) that
underpins the reforms as efficient and effective as possible.
Aggregating fuel tax credit claims in the running balance accounts
will be problematic, so this might include, for instance,
addressing concerns with the Tax Office s administration of the GST
. businesses required to be
members of the Greenhouse Challenge Plus Program (as they
claim over $3 million per annum in fuel tax credits) and meet all
relevant requirements under existing and new schemes should
not be impacted by the transition;
de minimus and safe harbour requirements
are included in the legislation, to give effect to the intended
reduction in record-keeping required to substantiate entitlements
once the fuel tax credit system is fully implemented; and
e-grant claims for fuel tax credits are continued
instead of being made through the Business Activity Statement
(BAS), as currently proposed, because that would raise compliance
costs. Although the BAS arrangement would align the mechanism for
claiming fuel tax credits with that for claiming GST input tax
credits, it would remove a recently introduced arrangement that is
beginning to gain acceptance and generate benefits.
The National Farmers Federation in its
Submission in response to the Treasury Fuel Tax Credit Reform
Discussion Paper stated, among other things, that:
- 2008 is an unreasonable amount of time to wait for the off road
extension to begin at a 50 per cent rebate, and 2012 far too
distant for the full 100 per cent rebate
- the NFF opposes the proposal to scrap the e-Grant program that
allows farmers and others to purchase fuel at the pump effectively
excise free on the grounds that this will potentially create cash
- NFF considers that the requirement for those businesses with
turnover of under $50,000 be required to claim rebates on a
Business Activity Statement, despite not having to be registered
for GST purposes, as inconsistent with the spirit and intent
current tax law, and
- the paper needs to provide greater clarity regarding the policy
intention for vehicles less than 4.5 tonnes as many farm vehicles
used off road fall into this category.(33)
Failure to pass the Bill would result in the continuation of the
existing system of grants and remissions. The existing system is
arguably generally less efficient than the Bill proposes. For
example, the discrimination among business activities and fuels
that is a feature of the current system would remain. Failure to
pass the Bill would also mean that the framework for bringing
alternative fuels into the tax net would not be established.
The estimated revenue forgone from the proposals in the Bill is
set out in Table 5.
Table 5: Estimated revenue forgone ($
Source: Explanatory Memorandum, p. 5.
Clause 41-5 Fuel tax credit for fuel to be used in
carrying on your enterprise
Subclause 41-5(1) sets out the general terms
for entitlement to receive a fuel tax credit for fuel used in a
business. The effect of Note 2 to this subclause is that
entitlement includes the use of blended fuels. Subclause
41-5(2) provides that entitlement exists only if the
business is registered for GST or required to be registered for
GST. However, subclause 41-5(3) provides that the
requirements of subclause 41-5(2) do not apply to non-profit bodies
and emergency services.
The Explanatory Memorandum elaborates on the meaning of use in
1.40 The term use in section 41-5 is intended to
cover use of the fuel to make a blend that cannot be used as a fuel
in an internal combustion engine. In most instances it will be self
evident whether the blend can be used as a fuel, but to ensure
certainty in cases where it is not self evident, the Commissioner
is able to make a determination under section 95-5 that a blend of
a fuel and another product does not constitute a
Clause 41-20 No fuel tax credit for fuel to be used in
light vehicles on a public road
The Bill does not define a light vehicle . But Clause
41-20 effectively defines a light vehicle by providing
that entitlement to a fuel tax credit does not exist when fuel is
used in a vehicle with a gross vehicle mass of 4.5 tonnes or
The effect of this clause is that most trucks will not be
eligible for fuel tax credits because most trucks have a gross
vehicle mass equal to or less than 4.5 tonnes. These trucks will
therefore have to pay the full amount of excise.
The 4.5 tonnes gross vehicle mass was chosen because:
- it reflects an existing break-point in the fuel taxation
- additional licensing requirements must be met in all Australian
jurisdictions to drive a vehicle of this mass or greater, and
- it is more difficult to distinguish between private and
business use in small vehicles.(35)
Clause 41-25 No fuel tax credit for fuel to be
used in motor vehicles that do not meet environmental criteria
Clause 41-25 establishes the requirement that
motor vehicles must meet one of four environmental criteria for its
use to be eligible to receive a credit. The criteria which are set
out in subclause 41-25(1) are:
- the vehicle was manufactured on or after 1 January 1996
- the vehicle is registered in an audited maintenance program
that the Secretary of the Department of Transport and Regional
Services has accredited
- the vehicle meets Rule 147A of the Australian Vehicle Standards
Rules 1999, and
- the vehicle complies with a maintenance schedule that the
Secretary of the Department of Transport and Regional Services has
Subclause 41-25(2) exempts from these
environmental requirements vehicles used in carrying on a primary
production business and that are primarily used on an agricultural
Currently, a credit is available for the private use of fuel
used to generate electricity for domestic use. As noted, the Bill
will extend this entitlement to the business use of all fuels used
to generate electricity for domestic use; such use will be
effectively excise-free from 1 July 2006. Further, the excise
currently levied on burner fuels such as heating oil and kerosene
will be effectively removed from 1 July 2006.
Clause 42-5 Fuel tax credit for fuel to be used in
generating electricity for domestic use
Clause 42-5 establishes that non-business use
of fuels for generating electricity for domestic use is eligible
for a credit.
Clause 43-5 Working out your fuel tax
Division 43 (Working out your fuel tax
credit) deals with calculating the amount of fuel credit
to which the claimant is entitled. Subclause
43-5(1) defines the amount as the effective fuel tax .
Subclause 43-5(2) defines effective fuel tax as
the fuel tax amount less any subsidy received, that is, the net
amount. This is to prevent claimants from double dipping, once from
the subsidy and once from the fuel tax credit. However,
subclause 43-5(3) provides that certain items are
not considered to be subsidies. The items are:
- a grant under the Biofuels Capital Grants Program
- grants for on-road alternative fuel under the Energy Grants
(Credits) Scheme Act 2003 (alternative fuels are biodiesel,
ethanol, liquefied petroleum gas, liquefied natural gas and
compressed natural gas)
- grants under the
Energy Grants (Cleaner Fuels) Scheme Act 2004, and
- a benefit paid to waste oil recyclers and for eligible uses of
specific oils under the Product Stewardship (Oil) Act
The effect of subclause 43-5(3) is to not reduce the amount that
a claimant is entitled to receive. As the Explanatory Memorandum
grants are paid for reasons other than to offset
the fuel tax payable on a fuel and therefore do not reduce the
amount of the taxpayer s fuel tax credit.(36)
Clause 43-10 Reducing the amount of your fuel tax
Subclauses 43-10(3) to
43-10(5) deal with the mechanism whereby the road
user charge is implemented. Subclause 43-10(3) provides that the
amount of the fuel tax credit is reduced by the amount of the
Currently, the excise on low sulphur diesel is 38.143 cents per
litre and the road user charge is 19.633 cents per litre, so the
maximum that can be claimed as a credit is 18.51 cents per litre.
The 18.51 cents per litre is paid as a grant under the EGCS.
The Explanatory Memorandum explains how a fuel tax adjustment
2.94 Fuel tax adjustments can arise in a number of
ways. It may be that the activity in which a taxpayer actually uses
the fuel is different from that which was intended. For example if
fuel, or some of it, is used for a private purpose or the
consumption of the fuel results in a different fuel tax credit
amount being applicable to the actual use.(37)
Clause 44-5 Increasing and decreasing fuel tax
adjustments for change of circumstances
There are two types of adjustments: decreasing and increasing.
Subclause 44-5(3) defines decreasing adjustments
as when the taxpayer is entitled, in effect, to receive additional
credits, while subclause 44-5(4) defines
increasing adjustments as when the taxpayer has received too much
Clause 45-5 Certain entities to be members of the
Greenhouse Challenge Plus Programme
Subclause 45-5(1) provides that taxpayers are
not entitled to receive more than $3 million in net fuel tax
credits in a financial year unless they are members of the
Greenhouse Challenge Plus Programme [paragraph
45-5(1)(a)] or another programme that the Environment
Minister determines by legislative instrument [paragraph
Subclause 45-5(2) provides that where taxpayers
become members of the Greenhouse Challenge Plus Programme, they
will be entitled to claim fuel tax credits for fuel they bought or
used before they joined the Programme, by making a
decreasing fuel tax adjustment for the amount of fuel tax credit
that they were previously not entitled to take into account.
This provision applies to taxpayers who could not claim more
than $3 million in fuel tax credits because they were not members
of the Greenhouse Challenge Plus Programme, and so provides an
additional incentive to join the Programme.
Clause 46-5 Instalment taxpayers
Subclause 46-5(2) establishes that if taxpayers
pay GST quarterly, the periods for which they claim fuel tax
credits are the same as those for the GST. But under
subclause 46-5(3), taxpayers can opt not to submit
a return for the first three quarters. An exception to this option
is where the taxpayers have an increasing fuel tax adjustment .
Currently, GST instalment payers can choose whether or not to lodge
a return in any of the four quarters. But when taxpayers have an
increasing fuel tax adjustment, the taxpayer must lodge a return
for the last quarter while lodging a return in the preceding
quarters is optional.
There are two net fuel amounts: negative and positive. A
negative fuel amount is when the taxpayer is owed money for fuel
tax credits. A positive fuel amount is the opposite.
Clause 60-5 Working out your net fuel
Subclause 60-5(1) sets out how a taxpayer s net
amount is calculated. The net fuel amount in a period is the sum
of: total fuel tax less total fuel tax credits, plus increasing
adjustments less decreasing adjustments.
Clause 61-5 Entitlement to a refund
Taxpayers are entitled to a refund when the net fuel amount for
a period (or fuel tax period) is less than zero [subclause
61-5(1)]. Conversely, taxpayers must pay the Commissioner
of Taxation when the return is more than zero [subclause
Clause 65-1 states:
Fuel tax credits and fuel tax adjustments are
attributed to tax periods (or fuel tax return periods).
Generally, if you are a business taxpayer, your
fuel tax credit for taxable fuel is attributed to the same period
as your input tax credit for the fuel (to reduce compliance costs).
If you are a non-business taxpayer, your fuel tax credit for
taxable fuel is attributed to the fuel tax return period in which
you acquire, manufacture or import the fuel.
Clause 61-20 Fuel tax return periods defines
fuel tax return periods (referred to in clause 65-1) that are
applicable to non-business taxpayers. Subclause
61-20(1) provides that if the taxpayer is neither
registered for GST, nor required to be registered for GST, the fuel
tax return period is the period specified in the return. However,
subclause 61-20(2) provides that taxpayers must
end a fuel tax return period within 90 days (or any longer period
allowed by the Commissioner) if the taxpayers become aware of an
increasing fuel tax adjustment, that is, the taxpayers have
received more in credits that their entitlements.
Division 70 applies the rules relating to
entities with respect to GST to entities seeking fuel tax
2.140 The GST Act provides special rules that
tailor the operation of the GST to the way particular entities are
organised. If a special GST rule applies to the way a taxpayer s
business is organised, the same rule will generally apply to them
for fuel tax credits.(38)
The Explanatory Memorandum describes the
provisions of Division 70, including examples, in paragraphs 2.140
Part 4-4 contains anti-avoidance provisions,
which are based on the anti-avoidance provisions in the GST
Act.(39) Clause 75-5 When does
this Division operate? sets out the general circumstances
which constitute avoidance. They are:
- there must be a scheme from which the avoider obtains a fuel
tax benefit [paragraph 75-5(1)(a)]
- the benefit does not derive from the fuel tax or GST laws
- the main purpose of the scheme was to obtain a fuel tax benefit
- the main effect of the scheme was to obtain a fuel tax benefit
[sub-paragraph 75-5(1)(c)(ii)] and
- the avoider derives the benefit after 1 July 2006
The remaining clauses in Subdivision 75-A Application of
this division define and expand on these circumstances.
Paragraphs 2.161 to 2.183 of the Explanatory Memorandum explain
Subdivision 75-B provides the Commissioner of
Taxation with powers to deal with avoidance. Clause
75-40 Commissioner may negate avoider s fuel tax
benefits gives the Commissioner power to make a
declaration stating the avoider s net fuel amount. The declaration
can cover several periods (clause 75-60) and the
Commissioner can require the avoider to refund the benefit obtained
An issue in determining whether an item is subject to excise and
hence potentially subject to a fuel tax credit is whether the item
is a fuel and, in particular, whether it is a fuel that can be used
in an internal combustion engine. The Explanatory Memorandum
contains the following explanation of clause 95-5
Determination of blends that no longer constitute fuels:
2.202 An entity may produce blends of fuel
products with other products, for use other than as a fuel for
example, for use as a solvent. If the blend can be used as a fuel,
the end user will claim a fuel tax credit for that fuel under
section 41-5. Some of these blends incorporate the addition of
non-excisable products to fuels for example, a non-excisable
product such as methyl ethyl ketone is blended with toluene, a
fuel, to make thinners. At some point in time the non-excisable
product makes up a sufficient component of the blend, so that the
end product does not present a significant risk of substitution as
2.203 The Commissioner may determine by
legislative instrument that such a fuel blend does not constitute a
fuel [subsection 95-5(1)]. If the Commissioner has made such a
determination then the producer of the blend is considered to have
used the fuel, rather than the end user, and is entitled to a fuel
2.204 There are several factors that the
Commissioner must take into consideration when making the
determination [subsection 95-5(3)]. The factor that he must give
greatest weight to is the risk that the blend may be used as a fuel
and the resulting financial impact on the Commonwealth [paragraph
Overall, the fuel tax credits scheme is an improvement on the
Energy Grants (Credits) Scheme (EGCS) which is the main scheme the
Bill supersedes. The Bill retains the entitlements under the EGCS
and extends them to additional businesses and fuels.
The Bill should improve economic efficiency. The extension of
the credit to all off-road business use and to all fuels will
remove the distortions in the EGCS whereby only certain activities
and only certain fuels are eligible. The additional businesses
which will be able to claim credits for the first time will
experience a reduction in costs.
A consequence of extending eligibility to additional activities
and fuels will be to relieve some businesses from excise on fuel
used as business inputs. Taxing intermediate inputs such as fuel
used in businesses distorts the allocation of resources. Excise
increases the cost of petrol and diesel that businesses use as
intermediate inputs particularly in industries that use these fuels
relatively intensively. This increases the output prices of such
industries relative to the prices of other industries. This, in
turn, lowers demand for the output of the industries that use fuel
relatively intensively, causing resources to leave them. In short,
taxes on intermediate inputs distort both consumption and
An alternative to the fuel tax credits scheme, which would also
relieve businesses of the excise on fuel used as inputs, would be
to abolish the excises and replace them with GST. But to be
revenue-neutral, the GST rate(s) on petrol and diesel would have to
be higher than the standard GST rate of 10 per cent. This would
have several disadvantages. One is that the higher rate would
increase administration and compliance costs. Second, the higher
rate would require changes to Commonwealth state financial
arrangements whereby the Commonwealth now pays to the states all
GST revenue it raises. However, a multi-rate GST system is
possible: several countries have different rates of value added tax
(the GST is a value added tax by another name).
As noted, the Bill paves the way for alternative fuels to be
subjected to excise. The energy white paper acknowledges that the
excise-exempt status of some alternative fuels has harmed economic
efficiency.(41) The decision to bring exempt fuels into
the excise net should therefore improve economic efficiency. The
phasing of fuel tax credits will give the affected industries time
The fuel tax credit scheme should ease generally administrative
and compliance burdens. In particular, the abolition of the
metropolitan boundaries should reduce the need for record keeping.
The replacement of all concessions, refunds and remissions with
fuel tax credits should also simplify administration. Further, the
ability of businesses to claim credits through their Business
Activity Statements should ease the administrative burden on
business. On the other hand, as the Explanatory Memorandum
acknowledges, some measures, such as those relating to the
environment, will entail additional administrative costs for some
As noted, the Bill proposes two additional environmental
measures, which should benefit the environment. On the other hand,
the abolition of the metropolitan boundaries could adversely affect
the environment in urban areas. As noted, under the EGCS, the
on-road component generally does not apply to the use of diesel in
urban areas for environmental reasons. Under the new credit system,
vehicles with a GVM of more than 4.5 tonnes will be able to
claim a full credit to the extent that the amount of excise paid on
fuel used exceeds the road-user charge regardless of where the
vehicle is driven.
The Bill proposes that vehicles used in carrying out a primary
production business that are used primarily on an agricultural
property be exempt from compliance with the environmental
performance criteria on the grounds that these vehicles do not
generally contribute to urban air quality problems.(42)
Whilst the point about urban air quality is correct, the
proposal ignores the fact that such vehicles nonetheless contribute
to air pollution and greenhouse gases.
On the matter of cash flows, some businesses have complained
that by having to apply for credits through the quarterly Business
Activity Statement rather than monthly as is now the case under the
EGCS, the businesses will be forced to borrow to finance the cost
of buying fuel.(43) Such businesses are, in effect,
using the EGCS as a form of government-financed interest-free loan.
This is inequitable and discriminatory: the government does not
provide interest-free loans to other businesses.
- The following draws on Richard Webb, Excise taxation:
developments since the mid 1990s , Research Brief, no. 15,
Parliamentary Library, Canberra, 2005 06 at http://www.aph.gov.au/library/pubs/rb/2005-06/06rb15.pdf.
Web address accessed 18 April 2006.
- Eligible alternative fuels are liquefied petroleum gas,
compressed natural gas, liquefied natural gas, ethanol, biodiesel,
and blends of biodiesel and diesel that consist mainly of
- Australian Taxation Office, Rates for the energy grants
Web address accessed 27 March 2006.
- Explanatory Memorandum, paragraph 1.14, p. 9.
- Hon. John Howard, (Prime Minister), Changes to the goods
and services tax (GST), http://www.pm.gov.au/news/media_releases/1999/changes3105.htm.
Web address accessed 27 March 2006.
- Australian Taxation Office, Eligibility requirements,
Web address accessed 27 March 2006.
- Portfolio Budget Statements 2005-06, Treasury
portfolio, p. 221.
- Explanatory Memorandum, p. 10.
- Budget strategy and outlook 2003 04 , Budget Paper No.
1, 2003, Canberra, pp. 1 22 and
- Hon. J. Howard (Prime Minister), Fuel excise reforms,
media release, Canberra, 16 December 2003, http://www.pm.gov.au/news/media_releases/media_Release624.html.
Web address accessed on 27 March 2005.
- Australian Government, Securing Australia s Energy
Future, Canberra, 2004, p. 93, http://www.pmc.gov.au/publications/energy_future/docs/energy.pdf.
Web address accessed on 27 March 2006.
- Treasury, Fuel Tax Credit Reform Discussion Paper,
Web address accessed 27 March 2006.
- Treasury, Review of the Schedule to the Excise Tariff Act.
Industry discussion paper, Canberra, 2005, at
Web site accessed 28 April 2006.
- The exemption for liquefied petroleum gas (LPG) dates back to
28 June 1979 when the excise on LPG was removed to help reduce
reliance on imported oil and petroleum products. The Fuel Taxation
Inquiry was sceptical about the cost-effectiveness of using excise
exemption to increase fuel security and recommended that LPG be
brought into the excise net.
- Explanatory Memorandum, paragraph 1.3, p. 7 and
paragraph 2.3, pp. 23 24.
- Explanatory Memorandum, paragraph 1.17, p.10.
- On 1 January 2006, the sulphur standard for diesel was reduced
to 50 parts per million under the Fuel Quality Standards Act
- National Transport Commission, Charges reflect a cautious and
conservative approach , news release, 17 October 2005 at
Web address accessed 20 April 2006.
- Hon. Warren Truss (Minister for Transport and Regional
Services), Australian Transport Council vote on the National
Transport Commission s recommendation on heavy vehicle
charges, media release 034WT/2006 at
Web address accessed 20 April 2006.
- Truckies cheer $7000 rego win , Daily Telegraph, 25
- Ministers drive is a bad omen Australian Financial
Review, editorial, 23 March 2006, p. 62.
- Explanatory Memorandum, paragraph 1.46, p. 18.
- Department of the Environment and Heritage web site at http://www.greenhouse.gov.au/challenge/about/.
Web address accessed 19 April 2006.
- Explanatory Memorandum, paragraph 1.47, p. 19.
- Environment Protection and Heritage Council website at http://www.ephc.gov.au/nepms/diesel/diesel_intro.html.
Web address accessed 19 April 2006.
- Explanatory Memorandum, paragraph 1.48, p. 19.
- Fuel Taxation Inquiry Report, March 2002, at http://fueltaxinquiry.treasury.gov.au/content/report/default.asp.
Accessed 26 April 2006.
- Hon. John Anderson (Minister for Transport and Regional
Services) and Senator the Hon, Ian Campbell, Major downpayment
on Australia s Transport Future, joint media
statement APM4/2004, 22 January 2004.
- Australian Government , Securing Australia s Energy
Future, 2004, p. 101 at
Accessed 26 April 2006.
- Australian Chamber of Commerce and Industry, Fuel Excise
and Credit Reform. Submission to the Department of the
Treasury, July 2005 at
Web address accessed 20 April 2006.
- Australian Seafood Industry Council, 3 July 2005, at http://www.asic.org.au/policy/item.php?pid=554.
Web address accessed 20 April 2006.
- KPMG, Fuel tax changes some devil in the detail at
Web address accessed 20 April 2006.
- National Farmers Federation, Submission to the Treasury
Fuel Tax Credit Reform Discussion paper, 3 August 2005 at
Web address accessed 20 April 2006.
- Explanatory Memorandum, paragraph 1.40, p. 16.
- Australian Government, Securing Australia s Energy
Future, op. cit., p. 97.
- Explanatory Memorandum, paragraph 2.73, pp. 39
- Explanatory Memorandum, paragraph 2.94, p. 43.
- Explanatory Memorandum, paragraph 2.140, p. 53.
- Explanatory Memorandum, paragraph 2.152, p. 57.
- Explanatory Memorandum, paragraphs 2.202 to 2.204, p.
- Australian Government, Securing Australia s Energy
Future, op. cit., p. 96.
- Explanatory Memorandum, paragraph 1.50, p. 19.
- Elizabeth Kazi, Changes to scheme fuel rebate worries
Australian Financial Review, 4 April 2006.
Economics, Commerce and Industrial Relations Section
4 May 2006
Bills Digest Service
Information and Research Services
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