Introduction of effective fuel tax on alternative fuels

In the 2010-11 Federal Budget, the Australian Government announced its intention to introduce an effective tax on alternative fuels.

On 12 May 2011, the government introduced four bills into parliament to tax gaseous fuels - liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG).

These gaseous fuels are 'alternative fuels'.

The legislation introduced included a number of changes to the previously announced policy and the exposure draft legislation.

On 29 June 2011, all four bills received royal assent and are now law.

Media releases

The following media releases have been issued:

• Media release No. 078 12 May 2011 by the Assistant Treasurer
• Media release No. 017 21 January 2011 by the Assistant Treasurer
• Media release No. 003 15 October 2010 by the Assistant Treasurer
• Joint media release No. 99 13 May 2010 by the former Assistant Treasurer and the Minister for Resources, Energy and Tourism.

Legislation and supporting material

The following legislation received royal assent on 29 June 2011:

• Taxation of Alternative Fuels Legislation Amendment Act 2011
• Energy Grants (Cleaner Fuels) Scheme Amendment Act 2011
• Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011
• Customs Tariff Amendment (Taxation of Alternative Fuels) Act 2011
• Explanatory Memorandum.

The following amendment regulations and supporting material were registered and published on 24 October 2011:

• Energy Grants (Cleaner Fuels) Scheme Amendment Regulations 2011 (No. 1)
• Excise Amendment Regulations 2011 (No. 1)
• Fuel Tax Amendment Regulations 2011 (No. 1)
• Customs Amendment Regulations 2011 (No. 2).

More information Refer to: Taxation of alternative fuels Exposure Draft and Explanatory Memorandum - Alternative Fuels Taxation, issued 24 January 2011 Implementation of alternative fuels taxation policy, discussion paper published by Treasury on 15 October 2010.