Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document

 Download WordDownload Word  Download PDFDownload PDF 


Bill home page
Table Of Contents
Previous Fragment    Next Fragment
Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009

Part 2-1 Basic rules

Division 5 Object of this Chapter

Table of Subdivisions

5-A       Object of this Chapter

Subdivision 5-A Object of this Chapter

Table of Sections

5-1            Object of this Chapter

5-1   Object of this Chapter

                   The object of this Chapter is to provide CPRS fuel credits to offset the impact of the carbon pollution reduction scheme.



 

Division 6 CPRS fuel credits

Table of Subdivisions

             Guide to Division 6

6-A       Entitlement rules for CPRS fuel credits

6-B        Disentitlement rules for CPRS fuel credits

Guide to Division 6

6-1   What this Division is about

CPRS fuel credits are provided in the following situations:

               (a)     you acquire, manufacture or import fuel between 1 July 2011 and 30 June 2014 for use in fishing operations or agriculture;

              (b)     you acquire, manufacture, or import fuel between 1 July 2011 and 30 June 2014 for use in incidental fishing activities or incidental agricultural activities;

               (c)     you acquire, manufacture or import fuel between 1 July 2011 and 30 June 2012 for use in heavy on-road vehicles;

              (d)     you acquire, manufacture or import fuel between 1 July 2011 and 30 June 2012 for use in certain vehicles acquired before 1 July 2006;

               (e)     you supply, or apply to your own use, automotive liquid petroleum gas between 1 July 2011 and 30 June 2014, and you are a liable entity for the purposes of the carbon pollution reduction scheme;

               (f)     you supply, or apply to your own use, automotive compressed natural gas between 1 July 2011 and 30 June 2012, and you are a liable entity for the purposes of the carbon pollution reduction scheme;

               (g)     you supply, or apply to your own use, automotive liquefied natural gas between 1 July 2011 and 30 June 2012, and you are a liable entity for the purposes of the carbon pollution reduction scheme.

Subdivision 6-A Entitlement rules for CPRS fuel credits

Table of Sections

6-5            CPRS fuel credit for fuel to be used for fishing operations or agriculture

6-10          CPRS fuel credit for fuel to be used for incidental fishing activities or incidental agricultural activities

6-15          CPRS fuel credit for fuel to be used in heavy on-road vehicles

6-20          CPRS fuel credit for fuel to be used in certain vehicles acquired before 1 July 2006

6-25          CPRS fuel credit for automotive liquid petroleum gas

6-30          CPRS fuel credit for automotive compressed natural gas

6-35          CPRS fuel credit for automotive liquefied natural gas

6-5   CPRS fuel credit for fuel to be used for fishing operations or agriculture

             (1)  You are entitled to a CPRS fuel credit for * eligible taxable fuel that you acquire or manufacture in, or import into, Australia during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2014;

to the extent that you do so:

                     (c)  for use in * carrying on your * enterprise in:

                              (i)  * fishing operations; or

                             (ii)  * agriculture; and

                     (d)  for use other than in a vehicle travelling on a public road.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you acquire, manufacture or import the fuel, you are * registered for GST, or * required to be registered for GST.

6-10   CPRS fuel credit for fuel to be used for incidental fishing activities or incidental agricultural activities

             (1)  You are entitled to a CPRS fuel credit for * eligible taxable fuel that you acquire or manufacture in, or import into, Australia during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2014;

to the extent that you do so:

                     (c)  for use in * carrying on your * enterprise; and

                     (d)  for use in:

                              (i)  * incidental fishing activities; or

                             (ii)  * incidental agricultural activities; and

                     (e)  for use other than in a vehicle travelling on a public road.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you acquire, manufacture or import the fuel, you are * registered for GST, or * required to be registered for GST.

6-15   CPRS fuel credit for fuel to be used in heavy on-road vehicles

             (1)  You are entitled to a CPRS fuel credit for * eligible taxable fuel that you acquire or manufacture in, or import into, Australia during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2012;

to the extent that you do so:

                     (c)  for use in * carrying on your * enterprise; and

                     (d)  for use in a vehicle with a gross vehicle mass exceeding 4.5 tonnes travelling on a public road.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you acquire, manufacture or import the fuel, you are * registered for GST, or * required to be registered for GST.

             (3)  Subsection (2) does not apply if, at the time you acquire, manufacture or import the fuel:

                     (a)  you are a non-profit body; and

                     (b)  you acquire, manufacture or import the fuel for use in a vehicle (or vessel) that:

                              (i)  provides emergency services; and

                             (ii)  is clearly identifiable as such.

6-20   CPRS fuel credit for fuel to be used in certain vehicles acquired before 1 July 2006

             (1)  You are entitled to a CPRS fuel credit for * eligible taxable fuel that you acquire or manufacture in, or import into, Australia during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2012;

if, as a result of the operation of item 12 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 , you are entitled to a fuel tax credit under section 41-5 of the Fuel Tax Act 2006 for the fuel.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you acquire, manufacture or import the fuel, you are * registered for GST, or * required to be registered for GST.

             (3)  Subsection (2) does not apply if, at the time you acquire, manufacture or import the fuel:

                     (a)  you are a non-profit body; and

                     (b)  you acquire, manufacture or import the fuel for use in a vehicle (or vessel) that:

                              (i)  provides emergency services; and

                             (ii)  is clearly identifiable as such.

6-25   CPRS fuel credit for automotive liquid petroleum gas

             (1)  You are entitled to a CPRS fuel credit for * liquid petroleum gas you * supply, or apply to your own use, during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2014;

if:

                     (c)  the liquid petroleum gas is marketed, or intended, for use in a vehicle travelling on a road; and

                     (d)  because of the supply, or the application to own use, you are a * liable entity under section 33, 33A, 34, 35, 36, 37, 38, 39 or 40 of the Carbon Pollution Reduction Scheme Act 2009 for an * eligible financial year; and

                     (e)  in the case of supply—you supply the liquid petroleum gas in your capacity as a * liquid petroleum gas marketer; and

                      (f)  in the case of application to own use—at the time you apply the liquid petroleum gas to your own use, you are a * liquid petroleum gas marketer.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you * supply, or apply to your own use, the liquid petroleum gas, you are * registered for GST, or * required to be registered for GST.

6-30   CPRS fuel credit for automotive compressed natural gas

             (1)  You are entitled to a CPRS fuel credit for * compressed natural gas you * supply, or apply to your own use, during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2012;

if:

                     (c)  the compressed natural gas is marketed, or intended, for use in a vehicle travelling on a road; and

                     (d)  because of the supply, or the application to own use, you are a * liable entity under section 33, 33A, 34, 35, 36, 37, 38, 39 or 40 of the Carbon Pollution Reduction Scheme Act 2009 for an * eligible financial year.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you * supply, or apply to your own use, the compressed natural gas, you are * registered for GST, or * required to be registered for GST.

6-35   CPRS fuel credit for automotive liquefied natural gas

             (1)  You are entitled to a CPRS fuel credit for liquefied natural gas you * supply, or apply to your own use, during the period:

                     (a)  beginning at the start of 1 July 2011; and

                     (b)  ending at the end of 30 June 2012;

if:

                     (c)  the liquefied natural gas is marketed, or intended, for use in a vehicle travelling on a road; and

                     (d)  because of the supply, or the application to own use, you are a * liable entity under section 33, 33A, 34, 35, 36, 37, 38, 39 or 40 of the Carbon Pollution Reduction Scheme Act 2009 for an * eligible financial year.

Note:          See also Subdivision 6-B (disentitlement rules).

Registration for GST

             (2)  However, you are only entitled to the CPRS fuel credit if, at the time you * supply, or apply to your own use, the liquefied natural gas, you are * registered for GST, or * required to be registered for GST.

Subdivision 6-B Disentitlement rules for CPRS fuel credits

Table of Sections

6-40          No CPRS fuel credit if another entity was previously entitled to a credit

6-45          No CPRS fuel credit for fuel to be used in motor vehicles that do not meet environmental criteria

6-50          No CPRS fuel credit for fuel to be used in aircraft

6-40   No CPRS fuel credit if another entity was previously entitled to a credit

             (1)  You are not entitled to a CPRS fuel credit for fuel if it is reasonable to conclude that another entity has previously been entitled to a CPRS fuel credit, or a * decreasing CPRS fuel credit adjustment, for the fuel.

             (2)  However, subsection (1) does not apply if it is also reasonable to conclude that another entity had, in respect of the credit, an * increasing CPRS fuel credit adjustment of the * amount of the credit.

6-45   No CPRS fuel credit for fuel to be used in motor vehicles that do not meet environmental criteria

             (1)  You are not entitled to a CPRS fuel credit under section 6-15 or 6-20 for fuel to the extent that you acquire, manufacture, or import the fuel for use in a * motor vehicle, unless the vehicle meets one of the following criteria:

                     (a)  it is manufactured on or after 1 January 1996;

                     (b)  it is registered in an audited maintenance program that is accredited by the * Transport Secretary;

                     (c)  it meets Rule 147A of the Australian Vehicle Standards Rules 1999;

                     (d)  it complies with a maintenance schedule that is endorsed by the Transport Secretary.

             (2)  Subsection (1) does not apply to a * motor vehicle:

                     (a)  that is used:

                              (i)  in carrying on a * primary production business; and

                             (ii)  primarily on an agricultural property; or

                     (b)  that is not powered by a diesel engine; or

                     (c)  that is not used on a public road.

6-50   No CPRS fuel credit for fuel to be used in aircraft

                   You are not entitled to a CPRS fuel credit under section 6-5, 6-10, 6-15 or 6-20 forfuel that you acquire, manufacture or import for use as fuel in aircraft if the fuel was entered for home consumption for that use (within the meaning of the Excise Act 1901 or the Customs Act 1901 , as the case requires).



 

Division 7 Working out your CPRS fuel credit

Table of Subdivisions

             Guide to Division 7

7-A       Working out your CPRS fuel credit

Guide to Division 7

7-1   What this Division is about

This Division sets out rules for calculating the amount of your CPRS fuel credit.

Subdivision 7-A Working out your CPRS fuel credit

Table of Sections

7-5            Working out your CPRS fuel credit

7-5   Working out your CPRS fuel credit

             (1)  The * amount of your CPRS fuel credit for fuel that you:

                     (a)  acquire; or

                     (b)  manufacture; or

                     (c)  import; or

                     (d)  * supply; or

                     (e)  apply to your own use;

at a particular time is the amount worked out to 5 decimal places (rounding up if the sixth decimal place is 5 or more) using the formula:

where:

adjusted volume of the fuel means:

                     (a)  if the fuel:

                              (i)  is classified to subitem 10.7, 10.11. 10.12 or 10.30 of the Schedule to the Excise Tariff Act 1921 ; or

                             (ii)  would be classified to those subitems if the fuel was manufactured in Australia;

                            the number of litres in so much of the fuel as does not consist of either of the following:

                            (iii)  ethanol;

                            (iv)  * biodiesel; or

                     (b)  if the fuel is * compressed natural gas—the number of cubic metres of the fuel; or

                     (c)  otherwise—the number of litres of the fuel.

For the purposes of paragraph (a), disregard any water that has been added to manufacture the fuel.

Note:          Paragraph (a) deals with blended fuel.

relevant rate of duty means the rate of duty specified at that time in subitem 10.10 of the Schedule to the Excise Tariff Act 1921 .

Note 1:       See also section 6AA of the Excise Tariff Act 1921 .

Note 2:       Division 10 sets out which tax period a credit is attributable to.

Adjustment factor

             (2)  For the purposes of subsection (1), the adjustment factor is the number worked out using the following table:

 

Adjustment factor

Item

If ...

the adjustment factor is ...

1

you are entitled to the CPRS fuel credit under section 6-5 (fishing operations or agriculture)

1

2

(a) you are entitled to the CPRS fuel credit under section 6-10 (incidental fishing activities or incidental agricultural activities); and

(b) you acquire, manufacture or import the fuel during the period:

(i) beginning at the start of 1 July 2011; and

(ii) ending at the end of 30 June 2012

0.5

3

(a) you are entitled to the CPRS fuel credit under section 6-10 (incidental fishing activities or incidental agricultural activities); and

(b) you acquire, manufacture or import the fuel during the period:

(i) beginning at the start of 1 July 2012; and

(ii) ending at the end of 30 June 2014

1

4

you are entitled to the CPRS fuel credit under section 6-15 (heavy on-road vehicles)

1

5

you are entitled to the CPRS fuel credit under section 6-20 (certain vehicles acquired before 1 July 2006)

1

6

you are entitled to the CPRS fuel credit under section 6-25 (automotive liquid petroleum gas)

0.67

7

you are entitled to the CPRS fuel credit under section 6-30 (automotive compressed natural gas)

0.78

8

you are entitled to the CPRS fuel credit under section 6-35 (automotive liquefied natural gas)

0.5

Amount of CPRS fuel credit for blends containing petrol or diesel

             (3)  However, the * amount of your CPRS fuel credit for fuel that:

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

                     (b)  meets a fuel standard, under the Fuel Quality Standards Act 2000 , for petrol or diesel;

is worked out under subsection (1) as if the fuel were entirely that kind of petrol or diesel (as the case requires).



 

Division 8 Increasing and decreasing CPRS fuel credit adjustments

Table of Subdivisions

             Guide to Division 8

8-A       Increasing and decreasing CPRS fuel credit adjustments

Guide to Division 8

8-1   What this Division is about

Your entitlement under section 6-5, 6-10, 6-15 or 6-20 to a CPRS fuel credit for fuel is worked out on the basis of what the fuel is intended for when you acquire, manufacture or import the fuel.

If you use the fuel differently, or you do not use the fuel at all, you have an increasing or decreasing CPRS fuel credit adjustment.

CPRS fuel credit adjustments are included in working out your net fuel amount under the Fuel Tax Act 2006 . (Your net fuel amount determines how much you owe the Commissioner or the Commissioner owes you.)

Subdivision 8-A Increasing and decreasing CPRS fuel credit adjustments

Table of Sections

8-5            Increasing and decreasing CPRS fuel credit adjustments for change of circumstances

8-10          Increasing CPRS fuel credit adjustment for failure to use fuel

8-5   Increasing and decreasing CPRS fuel credit adjustments for change of circumstances

             (1)  You have a * CPRS fuel credit adjustment if you use fuel in circumstances where, if you had originally acquired, manufactured or imported the fuel to use in those circumstances, the * amount of the CPRS fuel credit to which you would have been entitled under section 6-5, 6-10, 6-15 or 6-20 would have been different from the * amount to which you are or were entitled.

             (2)  The * amount of the adjustment is the difference between the 2 amounts.

Note:          Division 10 sets out which tax period or fuel tax return period the CPRS fuel credit adjustment is attributable to.

Decreasing CPRS fuel credit adjustments

             (3)  The * CPRS fuel credit adjustment is a decreasing CPRS fuel credit adjustment if the * amount to which you would have been entitled is greater than the amount to which you are or were entitled.

Increasing CPRS fuel credit adjustments

             (4)  The * CPRS fuel credit adjustment is an increasing CPRS fuel credit adjustment if the * amount to which you are or were entitled is greater than the amount to which you would have been entitled.

8-10   Increasing CPRS fuel credit adjustment for failure to use fuel

                   You have an increasing CPRS fuel credit adjustment if:

                     (a)  you are or were entitled under section 6-5, 6-10, 6-15 or 6-20 to a CPRS fuel credit for fuel; and

                     (b)  you have no reasonable prospect of using the fuel.

The * amount of the adjustment is the amount of the credit that you are or were entitled to.

Example:    You acquire eligible taxable fuel to use in a harvester in carrying on your agriculture enterprise, so you are paid a CPRS fuel credit for the fuel. Later on, the fuel is stolen. You have an increasing CPRS fuel credit adjustment of the amount of the credit.

Note:          Division 10 sets out which tax period or fuel tax return period the CPRS fuel credit adjustment is attributable to.