Welcome
No conflicts of interest were declared, and 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.
Reflections of 2024-25 / Focus for 2025-26
Fuel excise continues to be rated as a low-risk product for the Australian Taxation Office (ATO), and the industry is seen as highly compliant. It was noted that the 2022-23 tax gap estimate for fuel excise was 3.9% or $812 million. The 2023-24 tax gap will be published in October 2025. While this has previously been around 1 to2%, the lower the tax gap, the more sensitive it is to data variations as part of the calculation methodology used. Despite the increase in the estimated tax gap from 1.9% to 3.9%, the overall fuel excise program was still considered low risk. The total amount of fuel excise collected in 2023-/24 was $25.5 billion, up from $20.9 billion in 2022-23. The temporary fuel excise reduction in place during 2022-23 contributed to the difference.
The ATO noted the long-term industry trend which has seen excise duty collected on petrol drop by a third from 19 megalitres (ML) to 14.3 ML since 2003-04, while diesel has more than doubled, from 14 ML to 33 ML. Industry members agreed with the long-term trend noting the change was considered to be due to the uptake of electric vehicles, greater fuel efficiency across all passenger vehicles, a shift from petrol-powered vehicles to diesel and greater use of diesel in industry.
The excise client manager (ECM) program remains an effective way to manage the risk associated with large fuel excise collections. The program also provided a means for the ATO to gain greater insights into issues impacting the fuel excise system and the largest excise payers, including managing and supporting personnel changes, material system changes, and advice on new products or process changes. The direct contact also provides excise payers with assistance to avoid any disruptions. Part of the ECM program includes a level of confidence (LoC) program to gain further assurance of compliance. The LoC program had paused due to resourcing impacts such as COVID-19, however LoC work would be a key focus of the 2025-26 ECM work program to provide evidence-based confidence that clients have met and continue to meet their excise obligations. The LoC program considers overall business structure, business models, excise arrangements and transactions, where the business sits in the supply chain market and the sort of controls in place and their effectiveness.
The ATO considers the current level of debt in relation to fuel excise to be low and is reflective of early engagement with excise payers where issues arise.
The excise streamlining deregulation measures have now been implemented. From 1 July 2024, excise payers can apply for a general movement permission, to allow the movement of goods from an entity’s licensed premises to other licensed premises able to store fuel of that kind. This obviates the need for separate permissions from and to establishments. There are current permissions at client level which allow movement from all licences under an Australian business number (ABN) to all licences under a different ABN, including a move from third parties. The ATO is not intending to disrupt current client level movement permissions. ECMs would work through any transition with excise payers if that were to change.
The bunker fuels measure was the last measure to be implemented and took effect from 1 January 2025. This measure means that a remission can be applied to underbond fuel supplied to ships over 400 tonnes undertaking domestic voyages. Content on ato.gov.au has been updated to reflect the new arrangements.
Group governance
A membership review was carried out in July 2025, with membership considered in terms of representation and engagement. As a result, invitations were issued to several entities to join the group. These were accepted by Chevron, Glencore, Park, Trafigura, Freedom Fuels, Park, PetroChina International, Gemco and RTA Gove, and were represented at this meeting.
As part of governance for stakeholder groups, the group charter is required to be endorsed annually. The 2024 charter was provided in meeting papers for consideration. No comments were received from members and the charter will carry over for 2025.
|
Action item |
2025 Charter |
|---|---|
|
Status |
Completed |
|
Responsibility |
PSG Secretariat |
|
Description |
The 2025 Petroleum Stakeholder Group Charter to be distributed to members with meeting minutes. |
Roundtable member comments
Treasury advised that there were no current measures in the fuel excise space. Government is holding an Economic Reform Roundtable, with a focus on 3 main themes:
- making our economy more productive
- building resilience in the face of global uncertainty
- strengthening the budget and making it more sustainable.
Information on the Economic Reform RoundtableExternal Link, including the agenda and a short overview paper are available.
Australian Border Force advised they continue to support Treasury and the ATO in relation to the deregulation measures and are keen to hear feedback from industry about access to the bunker fuels measure and licensing arrangements.
The Australian Institute of Petroleum (AIP) has advocated to the Treasurer for a change from the current weekly payment cycle for large excise payers to a monthly payment cycle, noting the substantial holding cost between payment of excise and receipt of payment from the customer. We and our members consider that aligning fuel excise to the GST payment cycle would allow for better cash flow to stimulate more private sector investment and working capital management.
We also note the changing patterns of fuel demand, with continuing growth / demand for diesel and jet fuel. The aviation fuel sector has not fully rebounded since COVID-19 and diesel is being used extensively across the economy. Most electric vehicles in Australia were hybrid vehicles and therefore the impact on petrol usage was less than assumed. There has been a shift to diesel utes and passenger vehicles, and this was expected to grow.
Ampol noted the benefits of the ECM program. There was a need for the tax treatment of renewable diesel to match biodiesel given both products were using the same feedstock, but renewable diesel has a higher diesel rate applying. There was a lower demand for renewable diesel due to the higher price premium. The AIP were involved in discussions with government in relation to the safeguard mechanism with a move from high to low emissions fuel.
Viva Energy noted the current disconnect with return to bond for imported product going into terminals. This was particularly relevant in relation to the increasing investment in infrastructure for renewable products. Companies were not always able to take stock straight into bond, and where customs duty is paid at the border on product which is then blended with local product, companies cannot use the return to bond claim to claw back the customs duty paid. Viva Energy noted that when reforms realigned the treatment of lubricants, renewable diesels and sustainable aviation fuels were not considered. As the fuel industry ramps up for renewable fuels, this creates a greater impost. It was noted that this is due to Customs Regulations currently being narrow as to the type of product, limited to mineral or traditional fuels. The AIP noted that with renewable diesel standards in place from early 2025, industry considered that regulations should be aligning to fuel quality standards. The ABF advised that given the impact on revenue, this would be an issue for government to decide to progress.
Exxon Mobil Oil supported comments made in relation to renewable diesel. Exxon Mobil considers renewable diesel as a viable product solution going forward.
BP Australia Pty Ltd acknowledged recent ECM assistance in relation to processing issues.
Viva Energy noted that in relation to deferred payment arrangements, the impact of indexation on weekly excise payments on Viva Energy since the reintroduction of indexation in November 2014 has been an additional cumulative cost of approximately $30 million per week, equating to $1.56 billion annually. This does not account for volume increases and is dependent on the spread of product mix and customer mix of retail vs commercial. Fuel tax credit (FTC) claims by large mining companies have been the subject of current media and it was noted that FTC is claimed and received before those companies have paid the major fuel supplier. This shifts the cash flow burden to the fuel majors. The proposed new net cash flow tax where interest payments will be denied on larger businesses is a further burden on working capital.
Chevron had found discussions very insightful and noted that Chevron activities cover both downstream and upstream aspects – with the downstream paying fuel excise and the upstream being a monthly claimant of FTCs.
Glencore advised that their activities also involve both downstream in paying fuel excise and upstream being significant claimants of FTCs in the mining industry. They noted that the weekly payment obligation was more difficult to maintain from a resourcing perspective in terms of various staff providing data each week.
Members discussed these issues further, with Chevron advising that the administration burden in meeting lodgment and payment on Monday each week was an issue, particularly when dealing with overseas banking services to process payments They noted that there is a great reliance on staff carrying out lodgments, payments and reporting.
Freedom Fuels noted current issues for them being around an overcrowded market and illicit tobacco and shared concerns about reporting and payment terms and its’ impact on business.
Park Pty Ltd and PetroChina International were also supportive of issues raised around cash flow and timing of weekly reporting.
Gemco noted that while their business was not as a retail seller, they experienced similar issues raised by Glencore and BP.
RTA Gove Pty Ltd supported earlier comments, noting that as an excise payer, the requirement to meet weekly lodgments and daily payments was one of the main administrative burdens being experienced. RTA Gove noted that the recent introduction of the bunker fuel measure is working well and was a very smooth transition.
Members were thanked for their contributions and advised that while the group usually meets annually, and in addition to ECM assistance, members can contact the Secretariat with general queries.
Other business
It was noted that the ATO contributes monthly as part of the Commonwealth’s mandatory petroleum data reporting. Most members contributed to that report through other mechanisms, with the ATO providing monthly excise data to corroborate and support that information.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Michael Hughes (Chair), Small Business, Excise Experience |
|
ATO |
Anthony Barnard, Small Business, Excise Experience |
|
ATO |
Anthony O'Connell, Small Business, Excise Experience |
|
ATO |
Bonnie Joshi, Small Business, Excise Experience |
|
ATO |
David Maurovic, Small Business, Excise Experience |
|
ATO |
Jack Stewart, Small Business, Excise Experience |
|
ATO |
Michael Brooks, Small Business, Excise Experience |
|
ATO |
Shaun Wicks, Small Business, Excise Experience |
|
ATO |
Stasi Polas, Small Business, Excise Experience |
|
Australian Border Force |
Alex May |
|
Australian Border Force |
Kate Theodore |
|
Australian Institute of Petroleum |
Malcolm Roberts |
|
Ampol Australia Petroleum Pty Ltd |
Chelsea Riewoldt |
|
Exxon Mobil Oil Australia Pty Ltd |
Darren Koh |
|
BP Australia Pty Ltd |
Bill Barton |
|
BP Australia Pty Ltd |
Mandy Cheung |
|
Chevron Australia Downstream Fuels Pty Ltd |
Brendan CookKeith |
|
Chevron Australia Downstream Fuels Pty Ltd |
Keith Longland |
|
Freedom Fuels Terminalling Pty Ltd |
Houssain Ghabra |
|
Freedom Fuels Terminalling Pty Ltd |
Janelle Keatley |
|
Glencore Australia Oil Pty Limited |
Anne Collins |
|
Park Pty Ltd |
Shane Bourke |
|
PetroChina International (Australia) Pty Ltd |
Matthew Gough |
|
RTA Gove Pty Limited |
Sharon Jackson |
|
Trafigura Asia Trading Pty Ltd |
Daryl Campillos |
|
Trafigura Asia Trading Pty Ltd |
Jessica Datu |
|
Treasury |
Juyeon Lee |
|
Treasury |
Liz Jaspers |
|
Treasury |
Zoe Chalmers |
|
Viva Energy Australia Pty Ltd |
Helen Curran |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Emma Butler, Small Business, Excise Experience |
|
Ampol Australia Petroleum Pty Ltd |
Megan Kirkby |
|
Australian Border Force |
Kimberlee Clydesdale |
|
Exxon Mobil Oil Australia Pty Ltd |
Grace Abinoja |