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Edited version of your private ruling
Authorisation Number: 1012558161581
Ruling
Subject: Energy Grants (Cleaner Fuels) Scheme: what is a cleaner fuel
Question 1
Are you entitled to a cleaner fuel grant for a product you produce from a specific product?
Answer
No.
This ruling applies for the following periods:
2014-15 income year
The scheme commences on:
1 July 2014
Relevant facts and circumstances
You are an Australian company registered for goods and services tax (GST).
You intend to manufacture in Australia a fuel made from a specific product.
Your fuel will meet all regulatory and legislative requirements along with the standards defined by the Department of the Environment incorporated in the Fuel Quality Standards Act 2000.
Relevant legislative provisions
Energy Grants (Cleaner Fuels) Scheme Act 2004 section 2A
Energy Grants (Cleaner Fuels) Scheme Act 2004 section 4
Energy Grants (Cleaner Fuels) Scheme Act 2004 section 4A
Energy Grants (Cleaner Fuels) Scheme Act 2004 subsection 4(1)
Energy Grants (Cleaner Fuels) Scheme Act 2004 section 5
Energy Grants (Cleaner Fuels) Scheme Regulations 2004 regulation 3
Energy Grants (Cleaner Fuels) Scheme Regulations 2004 regulation 4
Energy Grants (Cleaner Fuels) Scheme Regulations 2004 paragraph 5(2)(b)
Excise Act 1901
Excise Tariff Act 1921
Reasons for decision
Section 2A of the Energy Grants (Cleaner Fuels) Scheme Act 2004 (EGCFSA) was established to provide a grant for:
1. the excise or customs duty payable in relation to the manufacture or importation of biodiesel
2. the excise or customs duty payable in relation to the manufacture or importation of renewable diesel
3. the manufacture and importation of low sulphur fuels.
Section 5 of the EGCFSA provides that you are provisionally entitled to a cleaner fuel grant if the fuel is a cleaner fuel.
A cleaner fuel is defined in subsection 4(1) of the EGCFSA as either biodiesel or renewable diesel or a fuel prescribed by the regulations.
Biodiesel and renewal diesel are defined in section 4 and 4A of the EGCFSA respectively. Both definitions require that these fuels must be manufactured by chemically altering vegetable oils or animal fats.
Regulation 4 of the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 (EGCFS Regulations) goes on to prescribe the following additional, cleaner fuels:
(a) biodiesel blend;
(b) low sulphur PULP;
(c) ultra low sulphur automotive diesel.
However, in accordance with paragraph 5(2)(b) of the EGCFS Regulations, the qualifying dates for low sulphur PULP and ultra low sulphur automotive diesel ended on 31 December 2007 and 31 December 2008 respectively.
The term biodiesel blend is further defined in regulation 3 of the EGCFS Regulations as fuel for use in an internal combustion engine and which is comprised of biodiesel and diesel and which complies with the diesel fuel standard.
Your product is made from a specific product and does not meet the definition of either biodiesel, renewal diesel or a biodiesel blend which are by definition cleaner fuels.
As your product does not meet the definition of a cleaner fuel, you are not entitled to a cleaner fuel grant for its manufacture.
Please note that while your product may not be considered to be a cleaner fuel, it may still be taxable under the Excise Act 1901 and the Excise Tariff Act 1921.
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