EXC 2006/10

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Australian Government

Fuel Tax Act 2006

Under section 95-5 of the Fuel Tax Act 2006 (Fuel Tax Act), I make the following determination:

Citation

1. This determination may be cited as the Fuel Tax (Fuel Blends) Determination 2006 (No. 1).

Legislative instrument

2. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Commencement

3. The determination has effect from 1 July 2006.

Object

4. Under section 95-5 of the Fuel Tax Act, the Commissioner of Taxation may determine that a blend of a fuel and another product does not constitute a fuel for the purposes of the Fuel Tax Act.

Application

5. This determination applies to blends that are produced on or after 1 July 2006.

Interpretation

6. In this determination:

CAS registry number refers to the unique number allocated to the chemical substance in the registry of the Chemical Abstracts Service, a division of the American Chemical Society.

taxable fuel means taxable fuel as defined in section 110-5 of the Fuel Tax Act but only if they are classified to subitem 10.25, 10.26, 10.27 or 10.28 of the Schedule to the Excise Tariff Act 1921.

v/v means volume to volume.

Where a blend is not a fuel

7. A blend of a taxable fuel and another product or other products is not a fuel for the purposes of the fuel tax law where:

(i)

the blend is not marketed or sold for use as fuel in an internal combustion engine; and

(ii)

it can be demonstrated that the blend contains a product listed in the Schedule at a concentration equal to or greater than the specified minimum; or

(iii)

it can be demonstrated that the blend contains more than one product listed in the Schedule and the total concentration of those products is equal to or exceeds 10% by volume.

8. This applies whether or not the blend contains other substances.

Example :

The following blends are not marketed or sold for use as fuel in an internal combustion engine:

(a)

90% toluene with 10% v/v methyl ethyl ketone

(b)

90% toluene with 8% v/v methyl ethyl ketone and 2% v/v butanol (Other Alcohol)

(c)

92% toluene with 4% v/v methyl ethyl ketone and 4% v/v butanol Other Alcohol)

Under this determination, blends (a) and (b) do not constitute fuel for the purposes of the fuel tax law; blend (c) is a fuel for those purposes.

Schedule

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Dated this 30th day of June 2006

Paul Dennis Southwell
Acting Deputy Commissioner and Delegate of the Commissioner of Taxation

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Registration Number: F2006L02186

Registration Date: 30 June 2006

Related Explanatory Statements:

EXC 2006/10 - Explanatory statement

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