Fuel Tax Act 2006

CHAPTER 3 - FUEL TAX CREDITS  

PART 3-1 - BASIC RULES  

Division 43 - Working out your fuel tax credit  

Subdivision 43-A - Working out your fuel tax credit  

SECTION 43-7   WORKING OUT THE EFFECTIVE FUEL TAX FOR FUEL BLENDS  

Certain blends containing ethanol

43-7(1)    
The effective fuel tax for taxable fuel that:

(a) is a blend of ethanol and one or more other kinds of fuel; and

(b) meets the requirements prescribed by the regulations;

is worked out under subsection 43-5(2) as if the fuel were entirely petrol.

Certain blends containing biodiesel

43-7(2)    
The effective fuel tax for taxable fuel that:

(a) is a blend of *biodiesel and one or more other kinds of fuel; and

(b) meets the requirements prescribed by the regulations;

is worked out under subsection 43-5(2) as if the fuel were entirely diesel.

Other blends for which there is evidence of fuel proportions

43-7(3)    
The effective fuel tax for taxable fuel:

(a) that is a blend of more than one kind of fuel; and

(b) to which neither subsection (1) nor (2) applies; and

(c) for which you have documentary evidence that satisfies the Commissioner of the actual proportions of the kinds of fuel in the blend;

is worked out under subsection 43-5(2) in accordance with those proportions.

43-7(4)    
The Commissioner may determine, by legislative instrument, the kinds of documentary evidence that are able to satisfy the Commissioner for the purposes of paragraph (3)(c).

43-7(5)    
If:

(a) you acquire or manufacture in, or import into, the indirect tax zone a taxable fuel that is a blend of either of the following (whether or not the blend includes other substances other than fuel):

(i) petrol and one other kind of fuel;

(ii) diesel and one other kind of fuel; and

(b) none of subsections (1), (2) or (3) apply to the fuel; and

(c) you acquire, manufacture or import the fuel on terms and conditions that specify or require that the blend contains a minimum percentage by volume of petrol or diesel (as the case requires);

then the effective fuel tax for the fuel is worked out under subsection 43-5(2) as if:

(d) the fuel contains that minimum percentage of petrol or diesel (as the case requires); and

(e) the remaining percentage by volume of the fuel consists of the other kind of fuel contained in the blend.

Rules for working out fuel tax in other cases of blends

43-7(6)    
For the purposes of working out under subsection 43-5(2) the *effective fuel tax payable on taxable fuels that are blends other than blends to which any of subsections (1), (2), (3) or (5) of this section apply, the Commissioner may determine, by legislative instrument, rules for working out the proportions of one or more of the constituents of the blends.

Note:

The rules may make different provision for different blends or different classes of blends (see subsection 33(3A) of the Acts Interpretation Act 1901 ).

Working out the fuel tax for certain fuels containing ethanol or biodiesel

43-7(7)    

Work out the *effective fuel tax under subsection 43-5(2) for taxable fuel:

(a) that you acquired, manufactured or imported; and

(b) that is, or is a blend containing, ethanol or *biodiesel; and

(c) to which neither subsection (1) nor (2) of this section applies;

as if all the ethanol or biodiesel were manufactured or produced in Australia.

Note:

As you may not know whether the ethanol or biodiesel is imported or manufactured domestically, this subsection requires you to work out the effective fuel tax assuming that they were manufactured domestically.