NO.004

INTRODUCTION OF ENERGY GRANTS (CREDITS) SCHEME BILL 2003

The Government has today introduced legislation to establish an Energy Grants

(Credits) Scheme which provides for payment of a grant to persons who are entitled

to an off-road or on-road credit.

This Bill gives effect to the commitment made by the Government in May 1999

under Measures for a Better Environment to replace the Diesel Fuel Rebate Scheme

and the Diesel and Alternative Fuels Grants Scheme with a single scheme called

the Energy Grants (Credits) Scheme.

Under the provisions of the Bill, a person will be entitled to an off-road

credit when purchasing diesel fuel for use in eligible activities that are the

same as those activities currently eligible for a rebate under the Diesel Fuel

Rebate Scheme. Similarly, a person will be entitled to an on-road credit when

purchasing fuel for use in activities which are the same as those activities

that were eligible for a grant under the Diesel and Alternative Fuels Grants

Scheme. In this way the Energy Grants (Credits) Scheme will maintain benefits

equivalent to those available under the existing schemes.

The Energy Grants (Credits) Scheme will be administered under the administrative

and compliance framework contained in the Product Grants and Benefits Administration

Act 2000. Claimants will be responsible for correctly self-assessing their entitlements

and maintaining records to substantiate their entitlements.

The Energy Grants (Credits) Scheme will apply from 1 July 2003.

The Measures for a Better Environment package also noted that the Energy Grants

(Credits) Scheme will provide encouragement for the conversion to cleaner fuels.

The Government is committed to pursuing options to achieve this and is doing

so by examining the issue as part of the consideration of alternative fuels

within the Energy Task Force.

13 February 2003

CANBERRA

Contact: David Alexander

              02

6277 7340