Fuel taxes in Australia

From Wikipedia, the free encyclopedia

The fuel tax system in Australia is very similar to Canada in terms of its double-dipping tax rates, but varies in the case of exemptions including tax credits and certain excise free fuel sources. Fuel taxes are handled by both the Federal and State Governments, including both an Excise Tax and a Goods and Services Tax or "GST". The tax collected is generally used to help fund national road infrastructure projects and repair roads, as well as provide extra revenue for other services.

The Goods and Services Tax of 10% is charged and included in the price of all fuel purchases in Australia.

The excise tax on commonly used fuels in Australia as of June 2006 are as follows:^{[citation needed]}

A$0.38143 per litre on Unleaded Petrol fuel (Includes standard, blended (E10) and premium grades)
A$0.38143/0.40143 per litre on Diesel fuel (Ultra-low sulphur/Conventional)
A$0.00 (Excise-Free) per litre on Liquified petroleum gas used as fuel (Autogas or LPG as it is commonly known in Australia)
A$0.38143 per litre on Ethanol fuel (Can be reduced/removed via Grants)
A$0.38143 per litre on Biodiesel (Can be reduced/removed via Grants)

Note: Petrol used for Aviation is taxed at $0.02854 per litre

The state government of Queensland also provides an 8.354c/litre subsidy to most fuels bought (including Unleaded, Blended unleaded, LPG and Ethanol). This is usually reflected by an 8.354/litre difference at the pump price, as the subsidy is paid directly to retailers.

There are also a number of various grants and incentive schemes involving tax credits and rebates that generally apply to businesses or industries that rely heavily on the use of fuels, such as transport and aviation. There are also rebates that encourage the production and importation of clean fuels.

The second phase of the Australian Fuel Tax Credits Scheme will come into effect 1 July 2008. Under these changes, all off-road business use of fuel will be eligible for subsidies. In other words, organisations that do not run large vehicle fleets but consume large amounts of fuel business processes (eg. manufacturing, construction, plant operations), are eligible for a fuel tax credit claim.