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Non-transport LPG, LNG or CNG

What to do if you manufacture LPG, LNG or CNG that is not for transport use.

Last updated 14 May 2023

What is non-transport LPG and LNG

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.

Excise for non-transport LPG and LNG

Even though a full automatic remission applies, you will still need to:

Application of excise remission

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.

Invoices for supply of non-transport LPG

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.

Using the LPG notice on your invoices

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.

Non-transport CNG

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.