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Fuel Tax Bill 2006

2004-2005-2006

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Fuel Tax Bill 2006

 

No.      , 2006

 

(Treasury)

 

 

 

A Bill for an Act about fuel tax and fuel tax credits, and for related purposes

 

   

   



Contents

Chapter 1—Introduction                                                                                        1

Part 1-1—Preliminary                                                                                                          1

Division 1—Preliminary                                                                                              1

Subdivision 1-A—Preliminary                                                                                2

1-5......... Short title............................................................................................. 2

1-10....... Commencement................................................................................... 2

1-15....... States and Territories are bound by the fuel tax law............................ 2

Part 1-2—Using this Act                                                                                                     3

Division 2—Overview and purpose of the fuel tax law                               3

Subdivision 2-A—Overview and purpose of the fuel tax law                           3

2-1......... Overview and purpose of the fuel tax law........................................... 3

Division 3—Explanation of the use of defined terms                                    4

Subdivision 3-A—Explanation of the use of defined terms                              4

3-1......... When defined terms are identified....................................................... 4

3-5......... When terms are not identified.............................................................. 4

3-10....... Identifying the defined term in a definition.......................................... 5

Division 4—Status of Guides and other non-operative material           6

Subdivision 4-A—Status of Guides and other non-operative material          6

4-1......... Non-operative material........................................................................ 6

4-5......... Guides................................................................................................. 6

4-10....... Other material...................................................................................... 7

Chapter 3—Fuel tax credits                                                                                 8

Part 3-1—Basic rules                                                                                                             8

Division 40—Object of this Chapter                                                                     8

Subdivision 40-A—Object of this Chapter                                                            8

40-5....... Object of this Chapter......................................................................... 8

Division 41—Fuel tax credits for business taxpayers and non-profit bodies       9

Guide to Division 41                                                                                                   9

41-1....... What this Division is about................................................................. 9

Subdivision 41-A—Entitlement rules for fuel tax credits                               10

41-5....... Fuel tax credit for fuel to be used in carrying on your enterprise...... 10

41-10..... Fuel tax credit for fuel to be sold or packaged................................... 11

Subdivision 41-B—Disentitlement rules for fuel tax credits                          11

41-15..... No fuel tax credit if another entity was previously entitled to a credit 11

41-20..... No fuel tax credit for fuel to be used in light vehicles on a public road 12

41-25..... No fuel tax credit for fuel to be used in motor vehicles that do not meet environmental criteria               12

41-30..... No fuel tax credit for fuel to be used in aircraft................................. 13

Division 42—Fuel tax credit for non-business taxpayers                         14

Guide to Division 42                                                                                                 14

42-1....... What this Division is about............................................................... 14

Subdivision 42-A—Fuel tax credit for non-business taxpayers                     14

42-5....... Fuel tax credit for fuel to be used in generating electricity for domestic use             14

Division 43—Working out your fuel tax credit                                             15

Guide to Division 43                                                                                                 15

43-1....... What this Division is about............................................................... 15

Subdivision 43-A—Working out your fuel tax credit                                      15

43-5....... Working out your fuel tax credit....................................................... 15

43-10..... Reducing the amount of your fuel tax credit...................................... 17

Division 44—Increasing and decreasing fuel tax adjustments              19

Guide to Division 44                                                                                                 19

44-1....... What this Division is about............................................................... 19

Subdivision 44-A—Increasing and decreasing fuel tax adjustments           19

44-5....... Increasing and decreasing fuel tax adjustments for change of circumstances           20

44-10..... Increasing fuel tax adjustment for failure to use or make a taxable supply of fuel    20

Part 3-3—Special rules                                                                                                       22

Division 45—Greenhouse Challenge Plus Programme                             22

Guide to Division 45                                                                                                 22

45-1....... What this Division is about............................................................... 22

Subdivision 45-A—Greenhouse Challenge Plus Programme                        22

45-5....... Certain entities to be members of Greenhouse Challenge Plus Programme              22

Division 46—Instalment taxpayers                                                                      24

Guide to Division 46                                                                                                 24

46-1....... What this Division is about............................................................... 24

Subdivision 46-A—Instalment taxpayers                                                            24

46-5....... Instalment taxpayers.......................................................................... 24

Chapter 4—Common rules                                                                                26

Part 4-1—Net fuel amounts                                                                                            26

Division 60—Net fuel amounts                                                                               26

Guide to Division 60                                                                                                 26

60-1....... What this Division is about............................................................... 26

Subdivision 60-A—Net fuel amounts                                                                    26

60-5....... Working out your net fuel amount .................................................... 26

Division 61—Returns, refunds and payments                                                28

Guide to Division 61                                                                                                 28

61-1....... What this Division is about............................................................... 28

Subdivision 61-A—Returns, refunds and payments                                         28

61-5....... Entitlement to a refund...................................................................... 28

61-10..... Requirement to pay a net fuel amount............................................... 29

61-15..... When you must give the Commissioner your return......................... 29

61-20..... Fuel tax return periods...................................................................... 30

Part 4-2—Attribution rules                                                                                             31

Division 65—Attribution rules                                                                                31

Guide to Division 65                                                                                                 31

65-1....... What this Division is about............................................................... 31

Subdivision 65-A—Attribution rules                                                                    31

65-5....... Attribution rules for fuel tax credits.................................................. 32

65-10..... Attribution rules for fuel tax adjustments.......................................... 33

Part 4-3—Special rules about entities                                                                       34

Division 70—Special rules about entities                                                          34

Guide to Division 70                                                                                                 34

70-1....... What this Division is about............................................................... 34

Subdivision 70-A—Special rules about entities and how they are organised   34

70-5....... Application of fuel tax law to GST groups and joint ventures.......... 35

70-10..... Entry and exit history rules............................................................... 35

70-15..... Consolidating joint venture returns................................................... 36

70-20..... Application of fuel tax law to religious practitioners......................... 36

70-25..... Application of fuel tax law to incapacitated entities........................... 36

70-30..... Application of fuel tax law to GST branches, resident agents and non-profit sub-entities        36

Subdivision 70-B—Government entities                                                             37

70-35..... Application of fuel tax law to government entities............................ 37

Part 4-4—Anti-avoidance                                                                                                 38

Division 75—Anti-avoidance                                                                                   38

Guide to Division 75                                                                                                 38

75-1....... What this Division is about............................................................... 38

Subdivision 75-A—Application of this Division                                                38

75-5....... When does this Division operate?..................................................... 39

75-10..... When does an entity get a fuel tax benefit from a scheme?................ 39

75-15..... Matters to be considered in determining purpose or effect................ 40

Subdivision 75-B—Commissioner may negate effects of schemes for fuel tax benefits               42

75-40..... Commissioner may negate avoider’s fuel tax benefits....................... 42

75-45..... Commissioner may reduce an entity’s net fuel amount to compensate 42

75-50..... Refund payable in accordance with declaration................................. 44

75-55..... Commissioner may disregard scheme in making declarations........... 44

75-60..... One declaration may cover several tax periods or fuel tax return periods 44

75-65..... Commissioner must give copy of declaration to entity affected......... 44

Part 4-5—Miscellaneous                                                                                                    46

Division 95—Miscellaneous                                                                                      46

Guide to Division 95                                                                                                 46

95-1....... What this Division is about............................................................... 46

Subdivision 95-A—Miscellaneous                                                                         46

95-5....... Determination of blends that no longer constitute fuels..................... 46

95-10..... Application of this law to the Commonwealth.................................. 47

95-100... Regulations....................................................................................... 47

Chapter 5—Interpretation                                                                                  49

Part 5-1—Rules for interpreting this Act                                                               49

Division 105—Rules for interpreting this Act                                                49

Subdivision 105-A—Rules for interpreting this Act                                         49

105-1..... What forms part of this Act............................................................... 49

105-5..... What does not form part of this Act.................................................. 50

105-10... Guides, and their role in interpreting this Act.................................... 50

Part 5-3—Dictionary                                                                                                           51

Division 110—Dictionary                                                                                          51

Subdivision 110-A—Dictionary                                                                             51

110-5..... Dictionary......................................................................................... 51

 



A Bill for an Act about fuel tax and fuel tax credits, and for related purposes

The Parliament of Australia enacts:

Chapter 1 Introduction

Chapter 3 Fuel tax credits

Chapter 4 Common rules

Chapter 5 Interpretation