Supplying excisable fuel products under an automatic remission
If you hold an excise manufacturer licence, excise storage licence or periodic settlement permission (PSP), you can supply some excisable fuel products, duty unpaid, to certain purchasers. The goods you supply will be excise-free as you get an automatic remission of the excise duty.
Make sure you understand when you can supply excise-free goods, who to and the associated restrictions and requirements.
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Who you can supply excise-free goods to
You can supply excise-free goods to the following purchasers:
- the Governor-General or any member of the Governor-General’s family, if the goods are for official use
- state governors or any member of a state governor’s family, if the goods are for official use
- certain international organisations specified in the law, or officials of those organisations, if the goods are not for the purposes of trade
- the government of another country under an agreement between that government and the Australian Government, if the goods are for official use and not for the purposes of trade
- people covered by a Status of Forces Agreement, if the goods are for official use
- official use by diplomatic missions and consular posts, and personal use of certain people working for those organisations
- people who obtain liquefied petroleum gas (LPG) and liquefied natural gas (LNG) for non-transport use, including use in a forklift.
Detailed information about automatic remissions, including the full list of who you can supply excise-free goods to, what you need to do, and record-keeping requirements is available in our Excise guidelines for the fuel industry – section 7 Remissions, Refunds, Drawbacks & Exemptions.
What you need to do
If you supply excise-free in the situations described above, you're entitled to an automatic remission or refund of excise duty on those goods.
However, you must also ensure that the end user is entitled to receive the goods excise free under an automatic remission or refund. You can do this by ensuring you follow the requirements for:
Each order you receive must be on official stationery.
This includes the Governor-General, state governors, certain international organisations, the government of a country other than Australia, and those covered by a Status of Forces Agreement. Orders must include confirmation that the goods are for official use.
Orders from diplomatic missions and consular posts must indicate whether the goods are for official or personal use.
LPG or LNG not to be used as a transport fuel
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 won't 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 was 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 the LPG is supplied in containers 210 kilograms or less, or when the LPG is supplied to a residential premises and not for business use.
Periodic settlement permission
A PSP allows you to deliver excisable goods into the Australian domestic market (for home consumption) over a specified period (settlement period).
In some circumstances you need to hold a PSP to supply goods under automatic remission. You don't need to report sales you have supplied under an automatic remission unless we request you to.
You don't need approval from us before you release goods subject to automatic remission. You therefore do not have to:
- enter these goods on an Excise return (NAT 4285) form, or
- seek remission on an Excise remission (NAT 4289) form.
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Businesses that hold an excise manufacturer licence, excise storage licence or periodic settlement permission can supply some excisable fuel products, duty unpaid, to certain purchasers.