Welcome
No conflicts of interest were declared. Attendees were reminded to declare any conflicts that may arise during discussions.
Integrity declarations have been completed by all non-government attendees. Attendees were asked to highlight any issues considered sensitive or confidential during discussions.
2025–26 reflections – compliance focus areas for 2026–27
The fuel excise sector continues to be viewed as a low risk/highly compliant industry. Issues tend to be marginal or operational in nature. The fuel excise gap for 2023–24 was published in November 2025 and was 1.8% or $460 million. This is considered to be low but it was noted that this is subject to revision over time as a consequence of the data sets used to estimate the gap. The ATO continues to refine methodologies and identify discrepancies between excise collected with Australian Bureau of Statistics data and mandatory fuel reporting data. The ATO is keen to hear from industry in relation to any compliance issues.
The temporary fuel excise rate reduction commenced from 1 April 2026 and was later extended at a lower rate from 1 July to 2 August 2026, to align with August indexation.
It was noted that diesel collections continued to increase, while petroleum collections remained flat. Previous meetings had noted this was likely due to improving fuel efficiency in passenger vehicles, a shift from petroleum vehicles to hybrid or diesel vehicles, and increased interest in electric vehicles. There appears to be a continued reliance on diesel consumption in manufacturing industries.
Given the concentrated nature of the fuel excise industry with a small number of major payers, the Excise Client Manager (ECM) program continues to be an important feature in managing risk. This provides an ATO contact point for larger excise payers to ensure timely lodgment and payment as well as providing the ability for the ATO to get a reasonable level of assurance that systems and processes in place are adequate. Level of confidence work to provide insights into operational transitions, system and procedural changes, guidance on product mixes and fuel supply arrangements are being carried out across fuel excise payers. Two reviews had been conducted in 2025–26 and 2 more will commence in 2026–27.
Other compliance work for fuel excise includes site visits for new licence applications and working with clients on the correct classification of products being developed. Systems and tools are in place in relation to remissions and refunds. The ATO has a strong focus around management of debt, and it was noted that levels of debt for fuel excise are very low, particularly when compared to the collections.
Technical advice
In May 2026, the ATO released a suite of legislative instruments for consultation. These related to measurement and calculation of fuel quantities for fuel excise purposes and support consistent treatment across the industry. There was broad support for maintaining the existing methodologies and no amendments were made. Petroleum Stakeholder Group (PSG) members will be advised when these have been registered on the Federal Register of Legislation websiteExternal Link.
The fuel excise rate had increased in February with indexation. Government announced a rate reduction from 1 April to 30 June 2026 of 60.9%. This was updated with a reduction of 30.4% of the full rate from 1 July to 2 August 2026. The ATO acknowledged the difficulty experienced by industry where there were short timeframes between royal assent and date of effect, and on this occasion, had published the rates with a banner on the ATO webpage to indicate that royal assent was pending. The ATO had carried out communications to mitigate references to 'halving of the rate' from 1 April 2026, given the reduction was actually 60.9%. This was likely to impact more on claimants of fuel tax credits, with the ATO encouraging taxpayers to refer to the ATO website for the rates being applied. It was noted that the date of effect for regular indexation of rates was dependent on the date of the consumer price index (CPI) being published.
Industry provided feedback that the excise fuel rate reduction had been extremely difficult to manage, particularly given extremely short timeframes between royal assent and the date of effect. It was also noted that this took place the day before the long weekend. The Australian Institute of Petroleum (AIP) expressed appreciation for ongoing engagement with the ATO during that period to manage expectations. Backdating of the additional GST related component (the 10.9%) also provided additional complexity in practical application of the changes being passed to the consumer. It was noted that industry is required to publish fuel prices as part of oil code obligations and there are lead times for price locks for Victoria and WA. royal assent had been provided at 8:00 pm on the evening before the rate change took effect and was considered unacceptable by industry. It was also noted that entities without ECM support were uncertain of the impacts, for example solvent providers / those with bond licences.
Treasury acknowledged industry’s request for a 5-business day period between royal assent and date of effect.
Member roundtable
Treasury advised that the Transport and Road User Charging Unit in the Individuals and Indirect Tax branch of Treasury is now responsible for fuel excise issues.
The government has focused on responding to the crisis in the Middle East and global oil shock over recent months. This included a reduction to the fuel excise rate and Heavy Vehicle Road User Charge (RUC) and efforts to strengthen fuel supply chains as part of the Strengthening Australia’s Fuel Resilience Package announced in the 2026–27 Budget. The Treasury Laws Amendment (Fuel Excise Relief) Act 2026 passed both houses of Parliament on 31 March 2026 and received royal assent on 1 April 2026. The Bill temporarily reduced the fuel excise rates for petrol and diesel from 1 April to 30 June 2026 and was later extended (with a lower reduction) by the Treasury Laws Amendment (Fuel Excise Relief No 2) Bill 2026 to cease on 2 August 2026 in line with indexation. That Bill passed both houses on 29 June 2026 and received royal assent on 30 June 2026. The Heavy Vehicle Road User Charge was also reduced to zero from 1 April to 30 June 2026 by the Fuel Tax (Road User Charge) Amendment Determination 2026. The government also reduced the Heavy Vehicle Road User Charge by 16 cents per litre from normal rates through the Fuel Tax (Road User Charge) Determination 2026 from 1 July 2026 to 2 August 2026.
Australian Border Force (ABF) continue to work closely with the ATO regarding importation of petroleum products, including licensing, and are working closely with Treasury to implement system changes for excise and excise equivalent goods. All updates are communicated through customs notices.
Industry continues to advocate to government on practical suggestions for improvements to excise administration, including a change from weekly to monthly excise payments, with one idea being to use a rolling average with an end of month reconciliation. Changes to support the uptake of renewable fuels have been discussed to achieve emissions targets and gain environmental benefits. The AIP would welcome further discussions with Treasury around policy to support energy transition. The AIP is also keen to work with the ATO and ABF for improvements in the administration of the excise regime.
Fuel security and the role of refining into the future is a key issue for industry and the government announcement to increase industry stock holdings and government-owned fuel reserves would be a focus over the next 6 to 12 months.
Industry raised issues related to the treatment of renewable fuels, particularly Sustainable Aviation Fuel and renewable diesel. This was discussed at the 2025 PSG meeting, particularly in relation to the disconnect between excise and customs legislation in relation to renewable fuels and the double taxation issue. This occurs where fuels are imported and kept in isotainers until tank storage is available. Where storage is not available, these are required to be stored outside bond. Industry was keen for similar amendments to Customs legislation as with the recent deregulation change for lubricants to avoid double taxation. There was also a lower excise rate for domestic biodiesel, however that rate did not apply to renewable diesel. As both products were seen to support decarbonisation initiatives, industry were keen for a similar approach, particularly given the additional functionality of renewable diesel compared to biodiesel.
Industry raised potential issues with changes to entity-continuing movement permissions as opposed to the new location-continuing movement permissions, noting the need to confirm that specific locations hold the permissions.
Chevron Australia advised that ENEOS Holdings had recently acquired Chevron’s downstream fuels and lubricants businesses across Southeast Asia and Australia. Arrangements would be business as usual until transition arrangements occurred. The Caltex brand would be retained.
Members advised of administrative challenges around fuel excise rate changes in relation to fuel tax credit claims. This caused a significant impact on business, particularly where the timing could lead to split rates for claims over a one-month period. While the CPI timing and the flow on impact on the date of indexation was noted, industry preference was for a beginning or end of month date of effect.
Industry also referred to issues for smaller independents in relation to the Minimum Stock Obligation (MSO) requirements and queried whether there was a way to address MSO on a progressive basis depending on the size of the entity.
Overall, members reiterated the significant impact of timing of fuel excise rate changes, particularly at short notice, and advocated for a minimum of 5 business days’ notice of future amendments.
Other business
As part of governance for stakeholder groups, the charter is required to be endorsed annually. The 2025 charter was provided in meeting papers for consideration.
No comments were received from members, and the updated charter will now carry over until the 2027 annual meeting. The 2026 charter will be distributed to members with the minutes from this meeting.
Members were advised that references to quick code (QC) page numbers in messaging are to mitigate risks of scam/malicious links. Entering the QC number in the search section on ato.gov.au will provide the appropriate webpages.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Anthony Siouclis, (Chair), Small Business |
|
ATO |
Anthony Barnard, Small Business |
|
ATO |
Anthony O'Connell, Small Business |
|
ATO |
David Maurovic, Small Business |
|
ATO |
Jack Stewart, Small Business |
|
ATO |
Jared Willoughby, Small Business |
|
ATO |
Kellysan Powers-Martin, Small Business |
|
ATO |
Mahmoud Fahda, Small Business |
|
ATO |
Mark Arnold, Small Business |
|
ATO |
Michael Hughes, Small Business |
|
ATO |
Stasi Polas, Small Business |
|
Ampol Australia Petroleum |
Chelsea Riewoldt |
|
Ampol Australia Petroleum |
Megan Kirkby |
|
Australian Institute of Petroleum |
Malcolm Roberts |
|
Australian Institute of Petroleum |
Peter Gneil |
|
Australian Border Force |
Charitha Adikari-Arachichi |
|
Australian Border Force |
Latha Reardon |
|
BP Australia |
Bill Barton |
|
BP Australia |
Mandy Cheung |
|
Chevron Australia Downstream Fuels |
Brendon Cook |
|
Chevron Australia Downstream Fuels |
Keith Longland |
|
Exxon Mobil Oil Australia |
Grace Abinoja |
|
Glencore Australia Oil |
Anne Collins |
|
Park Pty Ltd |
Shane Bourke |
|
Petrochina International (Australia) |
Charles Wright |
|
Petrochina International (Australia) |
Monique Lewis |
|
RTA Gove Pty Limited |
Sharon Jackson |
|
Treasury |
Jack Elliott |
|
Treasury |
Liz Jaspers |
|
Viva Energy Australia Pty Ltd |
Helen Curran |
Apologies
|
Organisation |
Member |
|---|---|
|
Freedom Fuels Terminalling |
Houssain Gnabra |
|
Gemco |
Janelle Keatley |
|
Trafigura Asia Trading Pte Ltd |
Jessica Datu |