Clean Energy (Fuel Tax Legislation Amendment) Act 2011 (157 of 2011)

Schedule 1   Fuel tax credits

Part 1   Amendments

Fuel Tax Act 2006

12   After section 43-7

Insert:

43-8 Working out amount of carbon reduction

Amount of carbon reduction: general rule

(1) Subject to subsections (3) and (4), the *amount of carbon reduction that applies to a particular quantity of taxable fuel you acquire, manufacture or import is worked out, to 3 decimal places (rounding up if the fourth decimal place is 5 or more), using the following formula:

Quantity of fuel x Carbon price x Carbon emission rate

where:

carbon emission rate means:

(a) if the fuel is gasoline - 0.0024; or

(b) if the fuel is LPG - 0.0016; or

(c) if the fuel is LNG - 0.0029; or

(d) if the fuel is CNG - 0.0029; or

(e) if the fuel is denatured ethanol for use in an internal combustion engine - nil; or

(f) if the fuel is biodiesel or renewable diesel - nil; or

(g) for any other taxable fuel (other than a blend of taxable fuels) - 0.0027.

Note: If the fuel is a blend, see subsection (3).

carbon price means:

(a) if you acquire, manufacture or import the fuel in the financial year starting on 1 July 2012 - 2,300 cents; or

(b) if you acquire, manufacture or import the fuel in the financial year starting on 1 July 2013 - 2,415 cents; or

(c) if you acquire, manufacture or import the fuel in the financial year starting on 1 July 2014 - 2,540 cents; or

(d) if you acquire, manufacture or import the fuel in the *half-year starting on 1 July 2015 or a later half-year - the amount that applies to that half-year under subsection (2).

quantity of fuel means:

(a) unless paragraph (b) applies - the number of litres of the fuel; or

(b) if the fuel is LNG or CNG - the number of kilograms of the fuel.

Carbon price for half-years starting on or after 1 July 2015

(2) For the purpose of paragraph (d) of the definition of carbon price in subsection (1), the amount that applies to a *half-year is the amount that:

(a) is worked out under section 196 of the Clean Energy Act 2011 taking account of auctions conducted in the 6 months ending at the end of:

(i) the last May before the start of the half-year, if the half-year starts on 1 July (in 2015 or a later year); or

(ii) the last November before the start of the half-year, if the half-year starts on 1 January (in 2016 or a later year); and

(b) is the first amount that is worked out in that way for those 6 months and published under that section.

Amount of carbon reduction: blends

(3) If the fuel is a blend of 2 or more kinds of taxable fuel (the constituent fuels ), the *amount of carbon reduction that applies to the blend is to be worked out as follows:

(a) work out the quantity of each of the constituent fuels that is included in the blend;

(b) work out the amount of carbon reduction that would apply to each of those quantities of the constituent fuels;

(c) the amount of carbon reduction that applies to the blend is the sum of the amounts worked out under paragraph (b).

Situations in which no carbon reduction applies

(4) The *amount of carbon reduction that applies to the fuel is nil to the extent that:

(a) the fuel is *covered by the Opt-in Scheme; or

(b) you acquire, manufacture or import the fuel for use in:

(i) *agriculture; or

(ii) *fishing operations; or

(iii) *forestry; or

(c) you acquire, manufacture or import the fuel for use in a vehicle with a gross vehicle mass of more than 4.5 tonnes travelling on a public road; or

(d) you acquire, manufacture or import the fuel for use otherwise than by combustion of the fuel.