Senate

Revised Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 1 - Commencement and general amendments

Outline of Chapter

1.1 This Chapter explains new entitlement and administrative provisions for the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA 1999).

Summary of new law

1.2 The amendments deal with the short title of this Act, commencement provisions, the insertion of additional definitions and the following changes to entitlement and general administrative provisions.

1.3 The amendments insert additional entitlement provisions to:

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extend eligibility to primary production businesses and to contractors carrying passengers or goods on behalf of primary production businesses, operating within the metropolitan areas;

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extend eligibility to buses using alternative fuels operating in metropolitan areas; and

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extend eligibility to emergency vehicles of over 4.5 tonnes gross vehicle mass operating on public roads in both metropolitan and non-metropolitan areas;

and the following general operational provisions to:

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extend the entitlement to vehicles that satisfy the entitlement criteria for some part of the grant period although the vehicle is not registered with the scheme at the time of the claim being made;

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accept registration of additional vehicles at the same time a claim is made in respect of those or other vehicles;

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ensure clients who seek to correct a mistake or omission for a previous claim do not lose their entitlements for both claims;

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provide for the payment of interest to clients on the underpaid amount of fuel grants which are paid or applied against debts as a result of an objection against a fuel grant assessment;

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clarify that journeys between metropolitan areas and non-metropolitan areas are eligible in both directions; and

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repeal Part 8 of the DAFGSA 1999 dealing with Recovery of Scheme Debts and to insert a new section dealing with recovery by set-off.

Detailed explanation of new law

Short Title

1.4 Upon commencement this Bill will be cited as the Diesel and Alternative Fuels Grants Scheme Amendment Act 2000.

Commencement

1.5 It is intended that the amendments will commence on the day the Bill receives Royal Assent. Item 14 of Schedule 1 commences immediately after the commencement of item 2 of Schedule 2 to the A New Tax System (Tax Administration) Act (No. 2) 2000 .

Definitions

1.6 This Bill amends section 5 of the DAFGSA 1999 to insert the following new definitions:

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'primary production business' which will have the same meaning as in the Income Tax Assessment Act 1997 ; and

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emergency vehicle which will mean a vehicle that is specified in the regulations to be an emergency vehicle, or that is in a class of vehicles that are specified in the regulations to be emergency vehicles.