Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 3 - Eligibility of buses using alternative fuels in metropolitan areas
Outline of Chapter
3.1 This Chapter explains the entitlement in the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA 1999) for buses using alternative fuels and operating in metropolitan areas.
Context of reform
3.2 The Government intends to amend the DAFGSA 1999 to extend eligibility for a grant to all buses using alternative fuels and operating in metropolitan areas.
Summary of new law
3.3 The amendments ensure the grant is payable for alternative fuels used in buses operating within the metropolitan areas.
Detailed explanation of new law
3.4 The amendments will extend the Diesel and Alternative Grants Scheme to buses operating in metropolitan areas and using alternative fuels. Journeys undertaken by buses solely within the metropolitan areas are currently ineligible for the grant under the entitlement provisions in section 10 of the DAFGSA 1999. Buses between 4.5 and 20 tonnes gross vehicle mass using alternative fuels will now be eligible for the grant when on a public road within the metropolitan area. [Schedule 1, item 5 and 6, new section 10AC]