Revised Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 2 - Eligibility of primary producers in metropolitan areas
Outline of Chapter
2.1 This Chapter explains new entitlement provisions for the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA 1999) for primary production businesses and contractors carrying passengers or goods on behalf of primary production businesses operating in metropolitan areas.
Context of reform
2.2 The policy concept that lies behind the modified package agreed with the Australian Democrats is to preserve most of the lower cost benefits of the ANTS diesel credits for rural and regional Australia while addressing concerns relating to the environmental impact of diesel use in large cities.
2.3 In determining the boundaries of metropolitan areas it is not possible to draw the boundaries in a way that excludes rural areas entirely.
2.4 The amendment will extend eligibility for the grant to transport operations for primary production businesses operating in metropolitan areas.
Summary of new law
2.5 Primary production businesses will be eligible for the grant when operating an eligible vehicle exclusively for primary production business activities on a public road within the metropolitan areas. The transportation of goods or passengers by a contractor, freight company or agent carrying passengers or goods on behalf of a primary production business will also be eligible where the only goods being carried are being carried on behalf of one or more primary production businesses.
Detailed explanation of new law
2.6 Amendments are necessary to give effect to the Government's decision to extend the fuel grant to primary production businesses located within the metropolitan areas and their contractors. As the legislation currently stands, entitlement to the grant is limited for vehicles between 4.5 tonnes and 20 tonnes. Journeys undertaken by these vehicles solely within the metropolitan areas are ineligible for the grant thus excluding in some cases, rural businesses located within the metropolitan areas. This amendment will extend the eligibility for the grant for primary production businesses and contractors carrying passengers or goods on behalf of primary production businesses operating in metropolitan areas. [Schedule 1, items 2, 5 and 6, new sections 10AA and 10AB]