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Fuel Tax (Consequential and Transitional Provisions) Bill 2006

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2004-2005-2006

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

FUEL TAX (CONSEQUENTIAL AND TRANSITIONAL PROVISIONS) BILL 2006

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be moved on behalf of the Government

 

 

(Circulated by authority of theTreasurer, the

Hon Peter Costello MP)

 



G eneral outline and financial impact

Amendments to the proposed alteration of the definition of ‘minerals’ under the Energy Grants (Credits) Scheme Act 2003

These amendments remove provisions of the Fuel Tax (Consequential and Transitional Provisions) Bill 2006 intending to alter the definition of ‘minerals’ under the Energy Grants (Credits) Scheme Act 2003 .

The effect of the amendments is to retain the current definition of ‘minerals’ under the Energy Grants (Credits) Scheme Act 2003 and therefore the current eligibility of activities under the Energy Grants (Credits) Scheme.

Date of effect :  These amendments will take effect from 29 March 2006, the date of introduction of the Fuel Tax (Consequential and Transitional Provisions) Bill 2006.

Proposal announced :  Not previously announced.

Financial impact :  These amendments have the financial impact of removing the expected fiscal impact of altering the definition of ‘minerals’ under the Energy Grants (Credits) Scheme Act 2003 , shown in the table of financial impact in the explanatory memorandum to the Fuel Tax (Consequential and Transitional Provisions) Bill 2006.

Compliance cost impact :  None.



C hapter 1  

Amendments 1 and 2

Explanation of amendments

1.1         Amendments 1 and 2 remove the amendments proposed to the definition of ‘minerals’ in the Energy Grants (Credits) Scheme Act 2003

1.2         The amendments as proposed in the Fuel Tax (Consequential and Transitional Provisions) Bill 2006, sought to clarify that the definition of ‘minerals’ does not include minerals produced from a synthetic production process or from a manufacturing process.  It also sought to clarify that the exclusion of certain materials from the definition of ‘minerals’ also included any inherent constituent materials of those materials.

1.3         These proposed amendments will restore the existing definition of ‘minerals’ in the Energy Grants (Credits) Scheme Act 2003.  This will ensure that activities currently eligible under the Energy Grants (Credits) Scheme continue to be eligible for a fuel tax credit.