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.