Excise remissions for excisable fuel and petroleum products
You may be able to claim a remission for the excise duty you would have had to pay for your goods if:
- your goods can't be delivered into the Australian domestic market, and
- you haven't paid the excise duty for them.
This means you won't have to pay any excise duty for these goods.
If you hold an excise manufacturer licence, excise storage licence or periodic settlement permission (PSP), you can supply some excisable goods, duty unpaid, to certain purchasers. The goods you supply will be excise-free as you get an automatic remission of the excise duty.
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What excisable goods you can claim a remission for
You can claim a remission for excisable goods that haven't been delivered into the Australian domestic market because they:
- deteriorated
- are damaged, lost or destroyed while they are underbond.
Example
A petroleum refinery has a major incident where a cracked pipeline has caused a leakage of 100,000 litres of fuel. They are able to recover 80% of the fuel for re-processing however, 20,000 litres of excisable fuel that seeped into the ground is unrecoverable and lost. The refinery applies to the ATO for a remission of duty on the 20,000 litres fuel that was lost. After they receive approval from the ATO, the refinery must:
- write the lost amount out of their stock
- keep a record accounting for the loss and approved remission.
End of exampleClaiming a remission
To claim a remission, you need to apply to us.
Destroying excisable goods subject to remission
Generally, off-site destruction of excisable goods requires a movement permission from us. However, where you indicate off-site destruction in your remission application, we will provide permission to move the goods off-site as part of the remission approval.
You must keep detailed records of the goods you destroy because we may ask to see these records.
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Remission for transport LPG and LNG
A full automatic remission of excise duty applies to liquefied petroleum gas (LPG) and liquefied natural gas (LNG) you supply for non-transport use only. You don’t need to complete a remission application for LPG and LNG if a full automatic remission applies.
You can't apply a remission to LPG or LNG when:
- you supply LPG or LNG for mixed-use (both transport and non-transport) and the LPG or LNG is delivered into one tank
- the end use of the LPG or LNG is unknown at the time of supply.
If you supply LPG or LNG duty unpaid on the basis that an automatic remission of the duty applies (that is, the goods are for non-transport use), you must have a reasonable expectation that the goods will not be used as a transport fuel.
Penalties can apply to both the supplier and end-user if LPG or LNG was supplied with an automatic remission of the duty but used as a transport fuel.
If you are supplying LPG with an automatic remission of the duty, you should include this notice on your invoices:
'Not to be used, or supplied, for transport use. Penalties apply.'
The notice isn't required when you either supply the LPG:
- in containers 210 kilograms or less
- to a residential premises and not for business use.
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Businesses that hold an excise licence can claim a remission (waiver) of your excise duty liability in some situations.