Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Bill 1999
This Bill amends the Diesel and Alternative Fuels Grants Scheme Act 1999 to insert the machinery and administrative provisions necessary to give administrative support that Act. This Bill also makes consequential amendments to the Taxation Administration Act 1953 and the A New Tax System (Australian Business Number) Act 1999.
The Diesel and Alternative Fuels Grants Scheme Act 1999 represents a commitment that the Government made to Australias rural and regional heartland in the lead up to the 1998 election.
Date of effect: This Bill provides that most provisions will commence on the day on which it receives Royal Assent. This will ensure that instruments and determinations may be made and registration mechanisms can be established before the Diesel and Alternative Fuels Grant Scheme (the Scheme) takes effect on 1July 2000. This will avoid any undue delay in claimants receiving their entitlements.
Financial impact: As the measures contained in this Bill are of a machinery and administrative nature there are no additional financial impacts of this Bill. The financial impact of the Scheme was contained in the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999.
Compliance cost impact: The provisions of this Bill will result in compliance costs for those seeking grants under the Scheme.
The grant for vehicles with a gross mass of 20 tonnes or more will require little record keeping additional to kilometres travelled, litres used and receipts. Eligible fuel use in vehicles between 4.5 and 20 tonnes outside the metropolitan areas will have these same requirements. Where there is some use of vehicles between 4.5 tonnes and 20 tonnes inside and outside the metropolitan areas, more extensive records will be required to substantiate a claim for a fuel grant.
The Scheme is a scheme to provide Commonwealth grants only to eligible claimants. The Government considers it appropriate that those seeking access to the grants maintain sufficient records and evidence to substantiate their claims. Those records and evidence will also be needed to enable the Commissioner of Taxation to make a correct assessment of a persons entitlement to the grants.
The Government has been conscious of the compliance costs required for the Scheme in the development of the provisions contained in this Bill and has sought to keep those costs to a minimum.
Application: It is intended that the grant will be available for fuel used on or after 1 July 2000 and before 1 July 2002. It is intended that from 1July2002 the Scheme will be replaced by an Energy Grants (Credits) Scheme.