Excise on gaseous fuels

What are gaseous fuels

Gaseous fuels include:

• liquefied petroleum gas (LPG)
• liquefied natural gas (LNG)
• compressed natural gas (CNG).

Your excise obligations vary depending on the type of fuel and whether the fuel product is intended for transport or non-transport purposes.

Transport gaseous fuels

Transport gaseous fuels include:

• LPG or LNG intended for use in an internal combustion engine of a motor vehicle or vessel, either directly or by filling another tank connected to the engine
• CNG for use as a fuel in a motor vehicle 
  • excluding CNG compressed at a residential premises, when
    • you use equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour, and
    • it's not for sale
     
   
• all gaseous fuels for either 
  • mixed use (that is, both transport and non-transport use)
  • where the end use is unknown.
   

We also treat gaseous fuels as transport gaseous fuel for excise purposes if you either:

• deliver it for mixed use into one tank
• don't know its intended end use when you deliver it into the Australian domestic market.

Excise for transport gaseous fuels

The gaseous fuel you manufacture and store is subject to excise if you intend to supply or use it for transport purposes. You will need to:

• hold an excise manufacturers licence
• lodge an excise return and pay excise duty
• keep complete and accurate records of all transport gaseous fuels you manufacture.

You will also need our permission if you move underbond transport gaseous fuels between licensed premises or to a place of export.

Generally, you need to lodge an excise return and pay excise duty before you deliver the gaseous fuel products into the Australian domestic market.

However, if you have a periodic settlement permission (PSP) from us, you can defer lodgment and payment of the gaseous fuel products you have delivered into the Australian domestic market, until the end of the period specified in the PSP. This includes when you use the gaseous fuels at the licensed premises.

Understand your excise obligations if you manufacture or store gaseous fuels, including LPG, LNG or CNG.