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  • Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Activities that involve packaging or supplying fuel

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The fuel tax credit rate you need to use is based on the intended use of the fuel. Fuel that you package or supply for combustible use from 1 July 2012 to 30 June 2014 was reduced by the carbon charge.

    For the latest rates for packaged and supplied fuel, refer to Fuel tax credit rates and eligible fuels. You need to use the rate that applied when you acquired the fuel.

    Fuel can be packaged or supplied for use including:

    See also:

    Filling LPG into cylinders of 210 kg capacity or less for supply for non-transport use

    You may be able to claim fuel tax credits for transport LPG when you supply it in or into cylinders of 210 kg capacity or less for use other than in an internal combustion engine of a motor vehicle or vessel (the exclusion for motor vehicles does not apply to forklifts used mainly off road). Fuel tax credit rates for transport LPG supplied from 1 July 2012 to 30 June 2014 in these circumstances were reduced by the carbon charge as the LPG was combusted.

    If you purchase non-transport gaseous fuel, you must not use or supply that fuel for transport use.

    Example: Supplying transport LPG

    In July 2013, Gas Tank Ltd acquires bulk LPG for both transport and non-transport use, with duty paid at the transport rate of 7.5 cents per litre. They package some of it into small 9 kg LPG gas bottles that they sell to a service station. The service station then sells the LPG gas bottles to its customers, primarily for BBQ use.

    Because Gas Tank Ltd supplied some of the transport LPG in containers of 210 kg or less for use other than in an internal combustion engine, Gas Tank Ltd is entitled to fuel tax credits at a rate of 3.636 cents per litre for that LPG. Gas Tank Ltd's fuel tax credits are reduced by the carbon charge of 3.864 cents per litre because the LPG will be combusted.

    Neither the service station nor its customers can claim fuel tax credits for the LPG gas bottles because they have already been claimed by the supplier.

    End of example

    Supplying transport LPG for transfer into tanks for residential use

    You may be able to claim fuel tax credits, if you supply transport LPG (duty paid at the transport rate) into tanks at residential premises for use at those premises. Fuel tax credit rates for transport LPG supplied from 1 July 2012 to 30 June 2014 in these circumstances were reduced by the carbon charge as the LPG was combusted.

    If you purchase non-transport LPG, you must not use or supply that fuel for transport use.

    You cannot store non-transport LPG in the same tank as transport LPG unless you have an excise license allowing you to do so.

    Example: Supply of transport LPG into tanks for residential use

    Bright Gas Ltd purchases transport LPG and supply it into tanks where the fuel is specifically for residential use. Because their LPG is duty paid and it is not being used for transport use, they can claim fuel tax credits.

    From 1 July 2013 to 30 June 2014, they can claim fuel tax credits at 3.636 cents per litre – that is, the rate of duty for LPG of 7.5 cents, minus the carbon charge for LPG (3.864 cents per litre).

    The residential consumer cannot claim fuel tax credits because they have already been claimed further up the supply chain by Bright Gas Ltd.

    End of example

    Supplying or distributing fuel for domestic home heating

    If you distribute heating oil or kerosene for residential heating, you can claim fuel tax credits so that individual users do not have to claim them. You must have a reasonable belief that the fuel will only be used for domestic home heating. Fuel tax credit rates for fuel acquired from 1 July 2012 to 30 June 2014 and used in this activity were reduced by a carbon charge because the fuel was combusted.

    Example: Supply of fuel for domestic home heating

    Mark purchases bulk heating oil at a cost that includes excise duty. He sells and distributes the heating oil to various locations in Tasmania. He delivers to households for use in heating, and also to a number of businesses, including a bakery which uses the heating oil to fire its ovens.

    Mark is entitled to claim fuel tax credits on the heating oil he sells to the households. He can take the fuel tax credit entitlement into account when setting the price of the heating oil.

    Mark is not entitled to claim fuel tax credits for the heating oil he sells to businesses such as the bakery because each business is entitled to claim fuel tax credits in their own right.

    The fuel tax credit rate Mark can claim for the heating oil he acquires from 1 July 2013 for delivery to households is 31.622 cents per litre.

    End of example

    Packaging liquid fuels in containers of 20 litres or less

    You can claim fuel tax credits where you package mineral turpentine, white spirit, kerosene and certain other liquid fuels (prescribed by the regulations) in containers of 20 litres or less that are not for use in an internal combustion engine and are not promoted for that use.

    Consumers may purchase the fuels for a variety of uses, including cleaning and other general household uses.

    The products’ packaging (including any images or text forming part of the packaging) must not suggest or imply that the fuel can be used in an internal combustion engine.

    Example: Packaging liquid fuels

    Acme Painters Supplies buys duty paid turpentine in bulk. They then package it into 2 litre containers ready for sale for use other than in an internal combustion engine. They can claim fuel tax credits of 38.143 cents per litre because duty had been paid on the turpentine and the packaged product is not intended for use in an internal-combustion engine.

    End of example
      Last modified: 19 Sep 2014QC 41272