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Mixed use supplies of LPG, LNG or CNG

What to do if you store or receive underbond LPG, LNG or CNG for both transport or non-transport use.

Last updated 14 May 2023

LPG or LNG for mixed use

If you receive underbond LPG or LNG for mixed use (that is, for both transport and non-transport use) you must:

  • clearly identify the transport and non-transport LPG or LNG supplies
  • lodge an excise return and pay excise duty on the transport LPG or LNG fuel
  • report on the non-transport LPG or LNG you have used or delivered into the Australian domestic market if we request it as part of your periodic settlement permission
  • keep records of your supplies of non-transport LPG or LNG.

Storing delivered supplies of LPG or LNG

If you don't hold an excise licence, you're required to keep supplies of transport gaseous fuel that are duty paid in separate tanks from non-transport supplies subject to remission.

If you only have one tank, you need to receive and store the entire amount as duty paid transport fuel. You will need to make sure that the LPG or LNG has had excise included for the gaseous fuels:

  • you will be using for transport purposes
  • used for non-transport purposes.

You may need an excise licence to mix transport and non-transport fuel in the one tank. We consider that to be blending. In most cases, we treat blending as excise manufacture.

CNG for mixed use

If you receive underbond CNG for mixed use (that is, for both transport and non-transport use) you must:

You may use approved apportionment methods if your equipment can't differentiate quantities of transport CNG from non-excisable CNG produced or natural gas used. To work this out, refer to EXC 2016/9 – Excise (Mass of CNG) Determination 2016 (No.2).

QC72535