Supplementary Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Statutory formula for calculating the amount of fuel
Special rule for stationary vehicles
1. The Diesel and Alternative Fuels Grants Act 1999 (DAFGSA 1999) contains entitlement provisions and administrative arrangements for the payment of grants for certain on road transport that uses diesel or alternative fuels.
2. Subsection 10B of the DAFGSA 1999 provides a statutory formula for calculating the amount of fuel used in a vehicle that is eligible for a grant within a grant period.
3. An amendment to subsection 10B is required to ensure that fuel used to operate equipment while the vehicle is stationary (e.g. a mobile crane operating on a construction site) is deducted from the total quantity of fuel before applying the statutory formula. The deduction will only be necessary where the quantity of fuel used while the vehicle is stationary is more than 20% of the fuel used in the vehicle during a grant period. [Schedule 1, item 7A]
4. The amendment has no financial impact.
Amendment to the Taxation Administration Act 1953
5. A technical amendment to subsection 250-10(2) of the Taxation Administration Act 1953 is required to insert a reference to the DAFGSA 1999 into the definition of 'amount of advance to be repaid' and 'amount payable as a result of an amended assessment'. [Schedule 2, item 1]