Second Reading Speech
Mr ANDERSON (Minister for Transport and Regional Services)I move:
That the bill be now read a second time.
The Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Bill 1999 implements changes to the Diesel Fuel Rebate Scheme agreed with the Australian Democrats as part of the package of environmental measures that will now accompany the introduction of the new tax system on 1 July 2000. The broad details of the environmental package, in so far as it applies to the use of diesel and alternative fuels, has been covered in my second reading speech introducing the Diesel and Alternative Fuels Grants Scheme Bill 1999 , as have the broad details of changes to the Diesel Fuel Rebate Scheme.
The main features of the Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Bill 1999 are as follows. It introduces a 100 per cent rebate for all diesel used by registered businesses in rail transport and in the marine industry. It provides for the rebates available for diesel to also be made available to qualifying users of like fuels such as light fuel oil and bunker fuel. These like fuels will be prescribed. The full rebate will be extended to existing qualifying users, including agriculture, fishing and mining, as well as private residences, bush and other nursing homes, hospitals and aged persons homes.
This means that the government intends to rebate all the excise paid on diesel and like fuels for use in primary production and all currently qualifying mining uses. Currently they do not receive a full rebate. Forestry will continue to have access to the rebate in the proportion it currently receives. The Diesel Fuel Rebate Scheme will sunset on 30 June 2002, and benefits equivalent to those available under it will be grandfathered into the new Energy Grants (Credits) Scheme that will come into effect on 1 July 2002.
Those off-road businesses that receive rebates under this scheme can be assured that the government will ensure these benefits are not diminished under the new Energy Grants Scheme. I commend the bill to the House and present the explanatory memorandum to the bill.
Debate (on motion by Mr Tanner) adjourned.