Please find below an overview of how the clean energy measures affect fuel tax credits and excise duty. It includes changes that took effect from 1 July 2013
Excise duty is a tax on certain types of goods that are made in Australia including alcohol, tobacco, petroleum, and alternative fuels.
Customs duty is imposed at an equal rate on imported alcohol, tobacco, and petroleum to ensure imported and local goods are treated consistently. These goods are referred to as Excise Equivalent Goods (EEGs). There are specific obligations to consider when dealing with excisable goods and EEGs.
Liquid fuels (that is, taxable liquid fuels) are petrol, diesel and other combustible fossil fuels, such as kerosene, mineral turpentine, white spirit, toluene, heating oil and some solvents. They can also include blends involving one or more of these goods with or without other substances. Liquid fuels do not include fuel ethanol and biodiesel which have no effective fuel tax and are not fossil fuels.
Gaseous fuels are liquefied natural gas (LNG), liquefied petroleum gas (LPG) and compressed natural gas (CNG) and can be either:
- Transport gaseous fuels are duty paid and include
- LPG or LNG intended for use in an internal combustion engine of a motor vehicle or vessel, either directly or by filling another tank connected to such an engine
- CNG that is imported or compressed for use as a fuel in a motor vehicle – excluding CNG that is compressed at a residential premises using equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour and not for further sale
- all gaseous fuels for mixed use (that is, both transport and non-transport use) or where the end use is unknown
- Non-transport gaseous fuels are not duty paid from 1 July 2013 and include
- LPG or LNG delivered only for use other than in an internal combustion engine of a motor vehicle or vessel (for example, residential heating or burner applications) or for use in forklifts
- CNG imported or compressed only for use in forklifts or not for use as a fuel in a motor vehicle. It also includes CNG compressed at a residential premises (including for use in a motor vehicle) using equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour and not for further sale.
Carbon charge is an amount equal to the price of carbon emissions from the use of liquid fuels or gaseous fuels. This charge varies for the different fuels depending on their carbon emissions. Carbon charge amounts will increase annually until 30 June 2015. The rates may then be adjusted every six months from 1 July 2015.