Clean energy - changes to fuel tax credits and excise duty

Increase in excise duty on domestic aviation fuels

From 1 July 2013, the excise duty on domestic aviation fuel will increase due to an increase in carbon charge amounts included in the excise duty. Excise duty rates for these fuels include a hypothecated levy of 3.556 cents per litre to fund the Civil Aviation Safety Authority (CASA) and the carbon charge amount.

Table 1: Excise rates for domestic aviation fuels in cents per litre

Fuel type	From 1 July 2012	From 1 July 2013	From 1 July 2014
Aviation kerosene	9.536 (3.556 + 5.98)	9.835 (3.556 + 6.279)	10.16 (3.556 + 6.604)
Aviation gasoline	8.616 (3.556 + 5.06)	8.869 (3.556 + 5.313)	9.144 (3.556 + 5.588)

From 1 July 2015, the carbon charge may change every six months.

Example 1: Aviation fuel and the carbon charge

AeroMan, a licensed manufacturer of aviation fuel, supplies 50,000 litres of aviation gasoline to Air Cargo Inc on 21 July 2013. Air Cargo only provides domestic cargo services.

As the fuel has been supplied into the domestic market after 1 July 2013, AeroMan will need to pay the increased rate of excise duty, which is 8.869 cents per litre, for aviation gasoline they supply to Air Cargo.

Air Cargo has not been declared a designated opt-in person under the opt-in scheme. Air Cargo Inc cannot claim fuel tax credits for aviation fuel acquired for use in aircraft.

Sections within Changes to excise duty

• Full automatic remission of duty for non-transport LPG and LNG
• Increase in excise duty on domestic aviation fuels