Fuel Tax Act 2006

CHAPTER 1 - INTRODUCTION

PART 1-2 - USING THIS ACT

Division 2 - Overview and purpose of the fuel tax law

Subdivision 2-A - Overview and purpose of the fuel tax law

SECTION 2-1

2-1 OVERVIEW AND PURPOSE OF THE FUEL TAX LAW

This Act provides a single system of fuel tax credits. Fuel tax credits are paid to reduce or remove the incidence of fuel tax levied on taxable fuels, ensuring that, generally, fuel tax is effectively only applied to:

(a) fuel used in private vehicles and for certain other private purposes; and

(b) fuel used on-road in light vehicles for business purposes.

Liability for fuel tax currently arises under the Excise Act 1901 , the Excise Tariff Act 1921 , the Customs Act 1901 and the Customs Tariff Act 1995 .

The administrative aspects of this Act (such as your rights, obligations and payment arrangements) are aligned as closely as possible to the administrative aspects of other indirect taxes (primarily, the GST), and other taxes administered by the Commissioner, to reduce your compliance costs.

View history note

History

S 2-1 amended by No 83 of 2014, s 3 and Sch 1 item 108, by substituting the first para for the first to fourth para, applicable to taxable fuel acquired, manufactured or imported on or after 1 July 2014. The first to fourth para formerly read:

This Act provides a single system of fuel tax credits. Fuel tax credits are paid to reduce the incidence of fuel tax levied on taxable fuels, ensuring that, generally, fuel tax is effectively only applied to:

(a) fuel used in private vehicles and for certain other private purposes; and

(b) fuel used on-road in light vehicles for business purposes.

For fuel that is not *covered by the Opt-in Scheme, the fuel tax credit entitlement is (with some exceptions) reduced by an amount equivalent to what the carbon price on the fuel emissions would be (if those emissions were subject to a carbon price). For fuel that is covered by that Scheme, the entitlement is not so reduced.

Fuel tax credits are also provided for fuel for use in aircraft if the fuel is covered by the Opt-in Scheme. The amount of the credit is limited to the carbon component rate that was factored into the rate of fuel tax.

Fuel tax credits are also provided for gaseous fuel that is subject to the carbon pricing mechanism if the fuel is for use in agriculture, fishing operations or forestry. The amount of the credit is the amount of the carbon charge that is embedded in the price of the fuel.

S 2-1 amended by No 84 of 2012, s 3 and Sch 2 item 76, by inserting " Fuel tax credits are also provided for gaseous fuel that is subject to the carbon pricing mechanism if the fuel is for use in agriculture, fishing operations or forestry. The amount of the credit is the amount of the carbon charge that is embedded in the price of the fuel. " , effective 1 July 2012.

S 2-1 amended by No 157 of 2011, s 3 and Sch 1 item 1, by substituting the first to third para for the first para, applicable to fuel acquired, manufactured or imported on or after 1 July 2012. The first para formerly read:

This Act provides a single system of fuel tax credits. Fuel tax credits are paid to reduce or remove the incidence of fuel tax levied on taxable fuels, ensuring that, generally, fuel tax is effectively only applied to:

(a) fuel used in private vehicles and for certain other private purposes; and

(b) fuel used on-road in light vehicles for business purposes.

S 2-1 amended by No 68 of 2011, s 3 and Sch 1 item 15, by omitting " It is intended that this Act be extended to apply to certain compressed and liquefied gaseous fuels. " before the para relating to administrative aspects of this Act, effective 1 December 2011.

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