Non-transport LPG and LNG includes LPG and LNG delivered only for use:
- other than in an internal combustion engine of a motor vehicle or vessel – for example, residential heating or burner applications
- in forklifts.
If you manufacture LPG or LNG that's not intended for transport use, and meet the requirements for a full automatic remission, it will be free of excise duty, but you will still have excise obligations.
Even though a full automatic remission applies, you will still need to:
- hold an excise manufacturer licence
- lodge an excise return
- keep complete and accurate records of your supplies if you manufacture, store or deliver LPG or LNG from a licensed premises for non-transport use.
An automatic remission can only be applied to LPG and LNG fuel that you:
- deliver for non-transport use into different tanks (from the tanks that any transport gaseous fuel is delivered into)
- invoice separately.
If you supply bulk non-transport LPG that hasn't had excise or customs duty paid on it, you must include the following notice on the tax invoice for the sale:
Not to be used, or supplied, for transport use. Penalties apply.'
If you receive bulk non-transport LPG that was subject to an automatic remission and hasn't had excise or customs duty paid on it, penalties will apply if you:
- use or supply it for transport (other than in forklifts)
- on-supply it without including the above notice on your invoice.
You don't need to include the above notice on the invoice if:
- you deliver the LPG in or into containers of 210 kg capacity or less
- you deliver the LPG for residential use and it's not intended to be used in carrying on an enterprise
- it's an underbond sale (for example, the LPG has been sold to another licensed entity)
- you export the LPG.
All non-transport CNG is exempt from excise obligations and excise duty.
If you manufacture, store or sell CNG only for non-transport use, you don't need to hold an excise licence, report to us or keep records of your supplies.
CNG is also exempt from excise when compressed for use:
- other than as a fuel for a motor vehicle
- other than in the course of carrying on an enterprise
- as a fuel in a motor vehicle when CNG is compressed at a residential premises where both
- you use equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour
- it's not for sale
- in a forklift.