Further Supplementary Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 6 - Diesel Fuel Credit Scheme
Introduction
6.1 Input tax credits are provided as a refund of GST paid on the supply to you. The credit provided under Division 123 of the A New Tax System (Good and Services Tax) Bill 1998 (the Bill) for diesel was not a credit for GST paid on the supply of the diesel. The Diesel Fuel Credit Scheme will be removed from the Bill. The Government will provide other mechanisms for reducing the cost of diesel use.
Amendments
6.2 Request 11 to the Bill removes Division 123, the Diesel Fuel Credit Scheme, from the Bill.
6.3 Amendments 2 to 4 to the Bill take out cross references to the Diesel Fuel Credit Scheme.
6.4 Amendments 15, 17 to 20, 23 to 26, 29, 31 and 32 to the Bill amend the definitions in section 195-1 of the Bill consequential on Request 11 .
6.5 Request 1 to A New Tax System (Goods and Services Tax Transition) Bill 1998 requests an amendment consequential on the removal of the Diesel Fuel Credit Scheme from the Bill.
6.6 Amendments 1 to 4 to the A New Tax System (Indirect Tax Administration) Bill 1999 make amendments consequential on the removal of the Diesel Fuel Credit Scheme from the Bill.
6.7 Amendments 1 to 4 to the A New Tax System (Goods and Services Tax Administration) Bill 1998 make amendments consequential on the removal of the Diesel Fuel Credit Scheme from the Bill.