EXC 2006/17

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Australian Government

Fuel Tax Act 2006

Under section 95-5 of the Fuel Tax Act 2006 (Fuel Tax Act), I make the following determination:

Citation

1. This determination may be cited as the Fuel Tax (Fuel Blends) Determination 2006 (No. 2).

Legislative instrument

2. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Commencement

3. This determination commences on the day after it is registered.^[F1]

Application of determination

4. This determination applies to blends made and packaged after commencement of this instrument.

Definitions

5. In this determination:

Excise tariff means the Schedule to the Excise Tariff Act 1921

fuel component means a product that is classified to subitem 10.15, 10.16, 10.25, 10.26, 10.27, 10.28 or 10.30 of the Excise tariff

fuel tax law has the same meaning as in section 110-5 of the Fuel Tax Act 2006 (Fuel Tax Act)

Object

6. A blend covered by this instrument does not constitute a fuel for the purposes of the fuel tax law.

7. In making a blend that is not a fuel for the purposes of the fuel tax law under this determination, a fuel component of the blend is 'used' within the meaning of subsection 41-5 (1) of the Fuel Tax Act.^[F2]

This means that the producer of the blend may be eligible to claim a fuel tax credit on the fuel component.

When a blend does not constitute a fuel

8. A blend of one or more fuel components with one or more other substances does not constitute a fuel for the purposes of the fuel tax law if:

(a)

apart from the application of this determination, the blend would be classified to subitem 10.30 of the Excise Tariff; and

(b)

the marketing test is satisfied.

Marketing test

9. The marketing test is satisfied where:

(a)

the blend is packaged into containers of not more than 20 litres capacity;

(b)

the packaging does not indicate that the blend can be used as fuel in an internal combustion engine;

(c)

the blend is sold in a single-use container;

(d)

the blend is not added to a used container; and

(e)

it is reasonable for the person who makes the blend to conclude that the blend will not be used as fuel in an internal combustion engine.

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Dated this 25th day of July 2006

Kathleen Quigley
Acting Deputy Commissioner and Delegate of the Commissioner of Taxation

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Registration Number: F2006L02471

Registration Date: 28 July 2006

Related Explanatory Statements:

EXC 2006/17 - Explanatory statement

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