House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

General outline and financial impact

Fuel Legislation Amendment (Grant and Rebate Schemes) Bill 2001

This bill amends the Customs Act, the DAFGSA 1999 and the Excise Act to:

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extend the expiry dates of the DAFGS and DFRS from 30 June 2002 to 30 June 2003;

•

extend the scope of the DAFGS, insofar as it relates to fuel used by emergency vehicles; and

•

make a number of administrative amendments to the DAFGS.

Date of effect: The amendments to be made by this bill, relating to the eligible use of fuel and to grant periods, will commence on a day to be fixed by proclamation. All other amendments will commence from the date of Royal Assent.

Proposal announced: Not announced.

Financial impact: The extension of the expiry dates of the DAFGS and the DFRS will not involve additional expenditure as the DAFGSA 1999 provides for the schemes to be replaced by an Energy Grants (Credits) Scheme from 1 July 2002 that would maintain entitlements equivalent to those under the DFRS and the DAFGS.

The amendment to extend the scope of the DAFGS, in relation to fuel used by emergency service vehicles, will involve a small additional expenditure, estimated at around $1 million per annum.

Compliance cost impact: The amendments to the expiry dates of the DAFGS and the DFRS and the extension of the DAFGS, in relation to emergency vehicles, will not involve additional compliance costs.

The proposed administrative amendments are intended to reduce the cost of compliance for businesses by simplifying record keeping requirements and claiming arrangements.