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Medical research funding, jobs, economy, Peter Garrett – Doorstop Interview, Parkville
June 11, 2004
Latham Doctors Transcript to Conceal Massive Financial Deficit
June 17, 2004
Medical research funding, jobs, economy, Peter Garrett – Doorstop Interview, Parkville
June 11, 2004
Latham Doctors Transcript to Conceal Massive Financial Deficit
June 17, 2004

Fuel Excise Reforms



Today the Government is announcing the details of a comprehensive overhaul

of Australia’s fuel excise system.

The changes, which begin to take effect from 1 July 2006, will provide excise

relief for a wide range of businesses and households. They ensure that a consistent

excise framework will apply to all relevant fuels. Combined with other measures

announced in the Government’s Energy White Paper, the changes will

result in an integrated policy which addresses economic, transport, environmental

and social objectives.

These excise reforms augment the measures for alternative fuels previously

announced by the Government.

When fully implemented, these reforms will significantly reduce the excise

burden for tens of thousands of businesses and a significant number of households.

Under the new arrangements:

  • from 1July2012, all off-road business use of all fuels will be effectively

    excise free, removing a range of artificial distortions from the system and

    substantially increasing the range of commercial activities eligible for excise


    • the Government will introduce this measure in stages, with a credit

      of half of the fuel excise incurred in all currently-ineligible off-road

      activities available between 1July2008 and 1 July 2012, and a full credit

      from 1July2012;

    • excise relief will be provided to a range of commercial activities

      for the first time (for example, tomanufacturing and construction, and

      to all aspects of quarrying) and other major beneficiaries include primary

      producers, miners and commercial power generators;

    • off-road business use of petrol (for example in utility vehicles and

      four-wheel motorcycles) will be effectively excise free for the first


  • from 1 July2006, the on-road credit paid to users of diesel in on-road

    vehicles weighing over 4.5tonnesGVM will be extended to users of all excisable

    fuels — benefiting the operators of around 57000 heavy petrol vehicles

    — and the metropolitan boundaries governing eligibility for this credit

    will be abolished — making all journeys in these vehicles eligible for

    the credit;

  • the partial excise paid on fuels used in heavy vehicles will be declared

    an official, non-hypothecated road-user charge from 1 July 2006 (this charge

    will be set consistent with future determinations of the National Transport


  • all private and business use of all fuels for electricity generation will

    be effectively excise free from 1 July 2006;

  • the excise currently levied on burner fuels —such as heating oil

    and kerosene — will be effectively removed from 1 July 2006, reducing

    the excise burden on up to 90,000 households and a range of businesses.

To implement these changes, the Government will introduce a new business credit

system. This system will replace all existing rebates and subsidies. Businesses

will be able to claim their fuel excise credits through their Business Activity

Statement in the same way as they claim their GST credits.

Business will only be required to fill in one form, and will have only one

point of contact with the Australian Tax Office.

These reforms, when fully implemented, will dramatically reduce record-keeping

requirements for a large number of businesses. They will also substantially

reduce the need for wasteful litigation.

The changes include an integrated set of environmental initiatives.

For the first time, eligibility for excise relief will depend on key players

meeting appropriate environmental safeguards.

Under the environmental measures, which commence on 1 July 2006:

  • firms receiving more than $3 million in business credits will be required

    to participate in the government’s Greenhouse Challenge Programme; and

  • heavy on-road vehicles will be required to meet one of five emissions-performance

    criteria designed to show they are not a high polluter.

These measures have been designed to deliver real environmental benefits, while

minimising the compliance burden on business.

The reforms will coincide with the introduction of new fuel standards for petrol

and diesel, which will substantially reduce air pollution in Australia’s

capital cities.

Full details of the reforms are provided in the Government’s Energy

White Paper, released by the Prime Minister today.



White Paper details are available at


Contact: David Alexander

02 6277 7340