LI 2026/D4

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Fuel Tax Act 2006

Legislative Instrument

Draft Fuel Tax (Fuel Blends) Determination 2026

I, Will Day, Deputy Commissioner of Taxation, make the following determination.

1 Name

This instrument is the Fuel Tax (Fuel Blends) Determination 2026.

2 Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation.

3 Authority

This instrument is made under subsection 95-5(1) of the Fuel Tax Act 2006.

4 Definitions

Note: A number of expressions used in this instrument are defined in 110-5 of the Act, including the following:

(a)

biodiesel;

(b)

fuel tax law;

(c)

indirect tax zone.

In this instrument:

Act means the Fuel Tax Act 2006.

CAS registry number means the unique number that is allocated to a chemical substance in the Chemical Registry System of the Chemical Abstracts Service, which is a division of the American Chemical Society.

fuel has the meaning given by section 4 of the Excise Act 1901.

specified product means a product that is listed in column 1 of an item in the table in subsection 6(1).

Tariff Act means the Excise Tariff Act 1921.

prescribed taxable fuel means:

(a)

fuels that are classified to subitem 10.25, 10.26, 10.27 or 10.28 of the Schedule to the Tariff Act; and

(b)

imported fuels that would be classified to any of those subitems if the fuels had been manufactured in the indirect tax zone.

v/v means volume per volume, which is a measure of the concentration of a substance in a blend or solution using volume-based measurement.

5 Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

6 Blends that do not constitute a fuel

(1) A blend of a prescribed taxable fuel and a specified product, with or without other substances, does not constitute a fuel for the purposes of the fuel tax law if:

(a)

the blend is not marketed or sold for use as fuel in an internal combustion engine; and

(b)

the blend contains:

(i)

at least one specified product that equals or exceeds the minimum concentration set out in column 3 in the following table for that product; or

(ii)

more than one specified product and the total concentration of all those specified products equals or exceeds 10% v/v.

(2) A blend consisting of biodiesel and another product, with or without other substances, does not constitute a fuel for the purposes of the fuel tax law if:

(a)

the blend is not marketed or sold for use as fuel in an internal combustion engine; and

(b)

the blend contains at least:

(i)

5.0% v/v of surfactant; or

(ii)

2.0% v/v of oleic acid; and

(c)

the blend does not contain any:

(i)

other kind of fuel; or

(ii)

imported fuel that would be classified to a subitem of the Schedule to the Tariff Act if it had been manufactured in the indirect tax zone.

Schedule 1—Repeals

Fuel Tax (Fuel Blends) Determination 2016 (No. 1)

1 The whole of the instrument

Repeal the instrument

 

Consultation

Subsection 17(1) of the Legislation Act 2003 requires that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken before they make a determination.

As part of the consultation process, you are invited to comment on the draft instrument and its accompanying draft explanatory statement.

Please forward your comments to the contact officer by the due date.

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Draft published 11 May 2026

Will Day
Deputy Commissioner of Taxation

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Related Explanatory Statements:

LI 2026/D4 - Explanatory statement

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