Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Chapter 1 - Introduction
1.1 The Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Bill 1999 (this Bill) amends the Customs Act 1901 and the Excise Act 1901 for the purpose of extending the Diesel Fuel Rebate Scheme (DFRS).
1.2 In particular, this Bill extends the existing scheme in order to provide a diesel fuel rebate for purchases of diesel and like fuels where that fuel is for use in:
- rail transport in the course of carrying on an enterprise; or
- marine use in the course of carrying on an enterprise.
1.3 Chapter 1 of this Explanatory Memorandum (this Chapter) provides the background to the rebate scheme and the purpose of the legislation.
1.4 Chapter 2 provides an explanation of the specific amendments to the Customs Act 1901. The provisions dealing with amendments to the Customs Act are found in Schedule 1 to this Bill.
1.5 Chapter 3 provides an explanation of the specific amendments to the Excise Act 1901. The provisions dealing with the amendments to the Excise Act 1901 are found in Schedule 2 to this Bill.
1.6 The existing DFRS provides a rebate for the excise paid on diesel fuel purchased for use in mining, primary production, at a hospital, at a nursing home, at an aged persons home and for certain residential power generation. The DFRS does not currently provide a rebate of the excise for diesel or like fuel used in rail transport or for marine use, other than fishing.
1.7 The extended DFRS rebate will be available for fuel purchased for use on or after 1July2000 but before 1July2002.
1.8 This Bill will provide a rebate for diesel and other like fuel, for an extended group of off-road uses, where the fuel is used for the purpose of carrying on an enterprise. This Bill will specifically extend the current scheme to provide a rebate for rail transport and for marine use where those uses are in the course of carrying on an enterprise. All existing categories of DFRS rebates will at least retain their existing entitlement.