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  • Fuel excise tax gap 2016-17

    This information is for historical purposes only.

    The fuel excise tax gap is the difference between the estimated value of excise raised from specific fuel products according to the law and the value actually raised for a financial year.

    Excise duty is a tax on fuel products produced or manufactured in Australia, predominantly consisting of petrol and diesel. Entities that manufacture or store excisable goods must hold an appropriate excise licence. They must pay excise duty on goods delivered into the domestic market.

    Imported fuel products are subject to customs duty at a rate equivalent to excise duty. This ensures they are treated consistently with goods manufactured in Australia. These imported goods are called excise equivalent goods (EEGs).

    For this estimate, fuel excise gap or fuel excise duty, includes excise and customs duties.

    Fuel excise duty is a significant source of revenue with a relatively low cost of collection. Consumption is considered to be relatively inelastic.

    The fuel industry is highly regulated with a small number of large clients responsible for the majority of collections. The industry is generally viewed as compliant. The mostly harmonised rates of duty limit the opportunity for fuel substitution.

    Risk management activities are focused on early identification of compliance issues. We apply an appropriate tailored response depending on the degree of non-compliance and level of risk.

    Infrastructure requirements for handling fuel make tax evasion on a large scale difficult.

    This estimate covers the excise gap related to petrol, diesel, biodiesel, fuel ethanol and associated blends only.

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      Last modified: 10 Jan 2020QC 61079