Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 1 - Introduction
Overview
The Diesel and Alternative Fuels Grants Scheme Bill 1999 (this Bill) introduces a grant for certain on road transport.
1.2 In particular, this Bill:
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- establishes an entitlement to the grant for on road use by all vehicles with a gross vehicle mass of 20 tonnes or more;
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- establishes an entitlement to the grant for on road use by vehicles with a gross vehicle mass of 4.5 tonnes to 20 tonnes used for transporting goods or passengers. However, for vehicles of this size, the grant is not available for use entirely within certain metropolitan areas;
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- provides the fuel use which entitles you to the grant;
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- provides how to calculate the amount of the grant;
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- provides how you claim the grant; and
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- provides how the grant will be paid to you.
However, this Bill does not provide for other matters related to the administration of the grants scheme. Such matters will be dealt with in a later Bill.
Outline to this Explanatory Memorandum
1.3 This Chapter provides the background to the grants scheme.
1.4 Chapter 2 provides an explanation of the rules that establish entitlement to the grant. It explains when the grant will be available and how it is calculated. These provisions are found in Part 2 of this Bill. Chapter 2 also explains how amounts of the grant are claimed and paid. These provisions are found in Part 3 of this Bill.
Background to the grants scheme
1.5 The existing Diesel Fuel Rebate Scheme (DFRS) provides a rebate for part of the excise paid on diesel for off-road uses including in mining, primary production, certain residential power generation, hospitals and nursing homes, and aged persons homes. The DFRS does not provide a rebate of the excise for fuel used in road transport.
1.6 The grant scheme will provide a grant for the on road use of diesel. The Government believes it is appropriate to maintain current price relativities between diesel and alternative fuels so as not to provide disincentives for conversion to these alternatives. Therefore, the grant will also be available for certain alternative fuels.
1.7 This Bill will commence on the later of 1 July 2000 or the commencement of the Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Act 1999 [subsection 2(1)] . However, this Bill will not commence unless certain vehicle emission standards as outlined in subsections 2(2), (3) and (4) of this Bill have been implemented. Also, this Bill will not commence unless certain appropriations are made as outlined in subsection 2(5) .