Excise and biodiesel manufacture

Excise duty

Excise is a duty on certain goods manufactured or produced in Australia. These goods are called excisable goods and include biodiesel.

Biodiesel is a fuel manufactured by chemically altering vegetable oils or animal fats (including recycled oils from these sources). It can be used on its own or blended with regular diesel.

If you are a biodiesel manufacturer, excise duty is payable on the biodiesel you manufacture.

When we say 'manufactured', we mean all the processes used to produce biodiesel. In some circumstances, it also means blending biodiesel. You need to be licensed to manufacture biodiesel in Australia.

	Excise is just one of a number of obligations you must meet at federal, state and local government levels.
	For more information, check the Government and Business Associations Directory at www.business.gov.au

Paying excise

If you are a biodiesel manufacturer, you are generally liable to pay excise. Businesses that re-package, store or distribute biodiesel may also have to pay excise.

By using a periodic settlement permission you can deliver your biodiesel into the Australian domestic market (either used within your business or made available for others to use) throughout a specified period (usually weekly, or monthly for small businesses). You can then pay the excise for the biodiesel you delivered at the end of that period.

If you use biodiesel for road transport, you may be able to claim a fuel grant for alternative fuels for biodiesel purchased before 1 July 2010. The grant rate for alternative fuels reduced to zero on 1 July 2010. You cannot claim a grant for biodiesel purchased on or after that date.