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  • Attention

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

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    Clean energy and the carbon charge

    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    The carbon charge was repealed from 1 July 2014. This information applies to fuel acquired from 1 July 2012 to 30 June 2014.

    A carbon charge applies to certain taxable fuels where the fuel is combusted, by reducing fuel tax credit rates by the relevant carbon charge amount. It is an amount equal to the price of carbon emissions from the use of liquid or gaseous fuels. The carbon charge amount varies for different fuels, depending on their carbon emissions rate.

    From 1 July 2013, carbon charge amounts increased, reducing fuel tax rates for some fuels and activities other than those listed below.

    Find out about;

    Fuels and activities not affected by the carbon charge

    Fuel tax credit rates are not reduced by a carbon charge for:

    • liquid and transport gaseous fuels used in    
      • vehicles with a GVM greater than 4.5 tonnes travelling on public roads
      • specified agriculture, fishing or forestry activities
      • activities that do not involve combustion of the fuel – for example, fuel used to clean machinery or as a mould release agent
       
    • liquid fuels used by businesses that have been declared by the Clean Energy RegulatorExternal Link as a designated opt-in person under the opt-in scheme
    • renewable fuels, such as biodiesel or fuel ethanol.

    You can claim fuel tax credits at a rate equal to the carbon charge amount if the fuel is:

    • non-transport gaseous fuel used in specified agriculture, fishing or forestry activities
    • domestic aviation fuel (aviation gasoline or aviation kerosene) used by businesses that have been declared by the Clean Energy RegulatorExternal Link as a designated opt-in person under the opt-in scheme.

    Fuels and activities affected by the carbon charge

    Fuel tax credit rates for liquid and transport gaseous fuels acquired from 1 July 2012 to 30 June 2014 were reduced by a carbon charge for all other activities.

    Are you in the opt-in scheme?

    The opt-in scheme started on 1 July 2013 and ended on 30 June 2014. The information below applies to fuel acquired from 1 July 2013 to 30 June 2014.

    Certain large users of liquid fuels can apply to the Clean Energy RegulatorExternal Link to opt in to the carbon pricing mechanism. If the application is accepted, they will be declared a designated opt-in person.

    From 1 July 2013 to 30 June 2014, a designated opt-in person discharged their carbon liability on their liquid fuel use through the carbon pricing mechanism instead of through the excise and fuel tax credit systems.

    If you were a designated opt-in person who is registered for fuel tax credits:

    • the fuel tax credit rates for liquid fuels you acquired from 1 July 2013 to 30 June 2014 are not reduced by the carbon charge – as a result, you can claim 38.143 cents per litre for liquid fuels you used in eligible off-road activities, such as construction, mining or landscaping
    • you can claim fuel tax credits at a rate equal to the carbon charge amount for domestic aviation fuels (aviation gasoline or aviation kerosene) you acquired from 1 July 2013 to 30 June 2014.

    See also:

      Last modified: 19 Sep 2014QC 41272