Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Diesel and Like Fuels Rebate Scheme
The Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Bill 1999 (this Bill) extends the existing Diesel Fuel Rebate Scheme, from 1July 2000 until 30 June 2002, for certain additional categories of applicant. The rebate will be available for the use of diesel fuel and like fuels. Like fuels will be prescribed.
The rebate will be extended to include diesel and like fuels used in:
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- marine uses; and
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- rail transport.
The rebate is currently available for off-road uses including in:
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- mining;
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- agriculture;
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- bush and other nursing homes;
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- hospitals; and
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- aged persons homes.
Date of effect: This Bill will commence from 1 July 2000, so that the extended rebate will be available for fuel purchased for use on or after 1July2000. The rebate will not be available for fuel purchased for use after 30June2002, when it is intended that it will be replaced by a new Energy Grants (Credits) Scheme.
Proposal announced: Announced by the Government on 28 May 1999.
Financial impact: The expansion of the Diesel Fuel Rebate Scheme will cost an additional $420 million in the 2000-01 financial year, and $480 million in the 2001-02 financial year.
Compliance cost impact: Medium
The amendments to the rebate scheme will have little effect on those currently entitled to a rebate under the scheme. Those categories of users presently entitled to claim a rebate are already required to keep records to substantiate their claim. The substantiation requirements for those entitled to claim the rebate as a consequence of these amendments will be the same as for those previously entitled.
Application: The rebate will be available for fuel purchased for use between 1July2000 and 30June2002. It is intended that from 1July2002 the Diesel Fuel Rebate Scheme will be replaced by an Energy Grants (Credits) Scheme.