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Taxation Laws Amendment Bill (No. 9) 1999

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1998-99

 

 

 

 

 

 

The Parliament of the Commonwealth of Australia

 

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

taxation laws amendment bill (n o . 9) 1999

 

 

 

 

 

 

Explanatory Memorandum

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the

Treasurer, the Hon Peter Costello, MP)



T able of contents

General outline and financial impact................................................ 1

Chapter 1 Amendments relating to the Diesel Fuel Rebate Scheme   3

 

 



G eneral outline and financial impact

 

The amendments to the Customs Act 1901 and Excise Act 1901 will align the diesel rebate rate for forestry use with the rebate rate for agriculture.

Date of effect :  The amendments will apply from 1 July 2000 so that eligible forestry operations will obtain a full rebate.

Financial impact :  Nil. These amendments simply give effect to the original government proposal. The expansion of the Diesel Fuel Rebate Scheme is expected to cost $420 million in the 2000-2001 financial year, and $480 million in the 2001-2002 financial year.

Compliance cost impact :  No additional compliance cost.

Application :  The full rebate will be available for fuel purchased after 1 July 2000.

Regulation Impact Statement

The Office of Regulation Review has confirmed that a Regulation Impact Statement is not required.

 

 



C hapter 1

Amendments relating to the Diesel Fuel Rebate Scheme

Overview

1.1         Schedule 1 to this Bill will:

·         amend the Customs Act 1901 to repeal subsections 164(5AAA) and (5AAB); and

·         amend the Excise Act 1901 to repeal subsections 78A(5AAA) and (5AAB).

Summary of amendments

Purpose of amendments

1.2         The purpose of the amendments is to align the diesel rebate rate for forestry use with the rebate rate for agriculture.

Date of effect

1.3         The amendments apply from 1 July 2000.

Background to the legislation

1.4         An inadvertent consequence of the passage of the overall package of amendments to the modified ANTS scheme is that the forestry and timber processing industries would have been required to pay approximately 8 cents per litre more for off-road use of fuel than other Agricultural industries. The intention of the Government was always that these industries would receive the same rebate amount. To ensure this commitment is kept, this amendment repeals the relevant subsections of the Customs Act 1901 and the Excise Act 1901 .

1.5         The full rebate will be payable for fuel purchased for eligible forestry activities from 1 July 2000 and this amendment aligns the diesel rebate rate for forestry use with the rebate rate for agriculture.