Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Diesel Fuel Rebate Scheme Amendment Bill 2002
This bill amends the Customs Act and the Excise Act to extend the DFRS to power generation by retail/hospitality businesses.
Date of effect: The amendments to be made by this bill will commence on 1 July 2002.
Proposal announced: The amendments give effect to a policy initiative announced by the Government during the 2001 federal election campaign.
Financial impact: The estimated cost of this measure is $20 million per year in a full financial year. The cost assumes no change in the volume of diesel used by eligible businesses as a result of the policy. This is because of the remoteness in location of many of these businesses and the difficulty of substituting away from other forms of energy supply. However, to the extent that substitution takes place, the cost estimates can vary.
Compliance cost impact: Businesses will need to retain records of the purchase and use of fuel to substantiate their rebate entitlements.