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Fuel Tax (Consequential and Transitional Provisions) Bill 2006

Schedule 3 Fuel credits arising from before 1 July 2006 and until 1 July 2012

Part 1 Definitions

1  Definitions

In this Schedule:

Energy Grants Act means the Energy Grants (Credits) Scheme Act 2003 .

Fuel Tax Act means the Fuel Tax Act 2006 .

off-road credit means an off-road credit under Part 4 of the Energy Grants Act.

off-road diesel fuel has the meaning given by section 4 of the Energy Grants Act.

on-road alternative fuel has the meaning given by section 4 of the Energy Grants Act.

on-road credit means an on-road credit under Part 3 of the Energy Grants Act.

on-road diesel fuel has the meaning given by section 4 of the Energy Grants Act.



 

Part 2 Energy grants arising before 1 July 2006

Division 1—Energy grants claimed under the Energy Grants Act

Energy Grants (Credits) Scheme Act 2003

2  Section 40

Before “This”, insert “(1)”.

3  At the end of section 40

Add:

             (2)  You are not entitled to an on-road credit if you purchase or import on-road diesel fuel on or after 1 July 2006.

Note:          Claims under the Product Grants and Benefits Administration Act 2000 for energy grants for on-road diesel fuel must be made before 1 July 2007 (see subsection 15(2) of that Act). Alternatively, you can claim such grants under the Fuel Tax Act 2006 (see item 9 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 ).

4  Section 51

Before “This”, insert “(1)”.

5  At the end of section 51

Add:

             (2)  You are not entitled to an off-road credit if you purchase or import off-road diesel fuel on or after 1 July 2006.

Note:          Claims under the Product Grants and Benefits Administration Act 2000 for energy grants for off-road diesel fuel must be made before 1 July 2007 (see subsection 15(2) of that Act). Alternatively, you can claim such grants under the Fuel Tax Act 2006 (see item 9 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 ).

Product Grants and Benefits Administration Act 2000

6  Before paragraph 15(2)(e)

Insert:

                   (db)  if the claim is for payment of an energy grant in respect of an on-road credit for on-road diesel fuel, or an off-road credit for off-road diesel fuel—must be given to the Commissioner before the earlier of:

                              (i)  1 July 2007; and

                             (ii)  the end of 3 years after the start of the claim period; and

7  After subsection 15(2)

Insert:

          (2A)  Despite the provisions of Part 3 and the Energy Grants (Credits) Scheme Act 2003 , you are not entitled to an energy grant for:

                     (a)  an on-road credit for on-road diesel fuel; or

                     (b)  an off-road credit for off-road diesel fuel;

if you have already given the Commissioner a return under the Fuel Tax Act 2006 that includes a net fuel amount that takes into account a decreasing fuel tax adjustment that relates to the fuel.

8  At the end of section 15

Add:

             (4)  In this section:

decreasing fuel tax adjustment has the meaning given by section 110-5 of the Fuel Tax Act 2006.

net fuel amount has the meaning given by section 110-5 of the Fuel Tax Act 2006.

off-road credit means an off-road credit under Part 4 of the Energy Grants (Credits) Scheme Act 2003 .

off-road diesel fuel has the meaning given by section 4 of the Energy Grants (Credits) Scheme Act 2003 .

on-road credit means an on-road credit under Part 3 of the Energy Grants (Credits) Scheme Act 2003 .

on-road diesel fuel has the meaning given by section 4 of the Energy Grants (Credits) Scheme Act 2003 .

Division 2—Energy grants claimed under the Fuel Tax Act

9  Grants claimed under the Fuel Tax Act

(1)       For the purposes of the Fuel Tax Act, you have a decreasing fuel tax adjustment if:

                     (a)  you purchased or imported on-road diesel fuel or off-road diesel fuel between 1 July 2003 and 30 June 2006 (inclusive); and

                     (b)  you were entitled to an on-road credit or an off-road credit in respect of the fuel (disregarding section 41 or 52 of the Energy Grants Act, as the case requires); and

                     (c)  you have not made a claim for payment of an energy grant in respect of the credit under section 15 of the Product Grants and Benefits Administration Act 2000 .

(2)       The amount of the adjustment is the amount of the credit that you were entitled to under the Energy Grants Act.

(3)       The adjustment is attributable to the tax period or fuel tax return period that you choose that ends before 1 July 2009.

(4)       If you have a decreasing fuel tax adjustment under this item, then:

                     (a)  Division 44 of the Fuel Tax Act (which is about fuel tax adjustments) applies as if a reference to a fuel tax credit were a reference to an on-road credit or an off-road credit, as the case requires; and

                     (b)  sections 49 and 55 of the Energy Grants Act do not apply to the fuel.



 

Part 3 Fuel tax credits arising between 1 July 2006 and 30 June 2012

Division 1—Credits arising between 1 July 2006 and 30 June 2008

10  Fuel acquired, manufactured or imported between 1 July 2006 and 30 June 2008

(1)       This item applies if:

                     (a)  you acquire, manufacture or import taxable fuel between 1 July 2006 and 30 June 2008 (inclusive); and

                     (b)  you acquire, manufacture or import the fuel for use in carrying on your enterprise, other than:

                              (i)  for use in a vehicle travelling on a public road; or

                             (ii)  for incidental use (within the meaning of section 8 of the Energy Grants Act) in relation to a vehicle covered by subparagraph (i); or

                            (iii)  for use by you in generating electricity; or

                            (iv)  for use other than as a fuel; or

                             (v)  for use other than as a fuel in an internal combustion engine; or

                            (vi)  for use as heating oil; and

                     (c)  apart from this item, you would be entitled to a fuel tax credit under section 41-5 of the Fuel Tax Act.

(2)       You are not entitled to the credit under section 41-5 of the Fuel Tax Act unless you meet a condition in subitem (3) or (5).

Entitlement to a credit if you would have been entitled to an on-road credit

(3)       You are not entitled to the credit under section 41-5 of the Fuel Tax Act unless you would have been entitled to an on-road credit in respect of the fuel, assuming:

                     (a)  that you had disregarded subsection 40(2) and sections 41 and 49A of the Energy Grants Act; and

                     (b)  that references in Part 3 of that Act to “purchase or import into Australia” were instead references to “acquire or manufacture in, or import into, Australia”.

(4)       If subitem (3) applies to you, you are taken, for the purposes of section 43-10 of the Fuel Tax Act, to have acquired, manufactured or imported the fuel to use, in a vehicle, for travelling on a public road.

Note:       The effect of this subitem is that the amount of the fuel tax credit is reduced under section 43-10 of the Fuel Tax Act by the amount of the road user charge.

Entitlement to a credit if you would have been entitled to an off-road credit

(5)       You are not entitled to the credit under section 41-5 of the Fuel Tax Act unless you would have been entitled to an off-road credit in respect of the fuel, assuming:

                     (a)  that you had disregarded subsection 51(2) and sections 52 and 55A of the Energy Grants Act; and

                     (b)  that references in Part 4 of that Act to “purchase or import into Australia” were instead references to “acquire or manufacture in, or import into, Australia”.

Fuel tax adjustment provisions

(6)       If this item applies, then sections 49 and 55 of the Energy Grants Act do not apply to the fuel.

Note:       Division 44 of the Fuel Tax Act 2006 deals with adjustments of fuel tax credits.

Division 2—Credits arising between 1 July 2008 and 30 June 2012

11  Fuel acquired, manufactured or imported between 1 July 2008 and 30 June 2012

(1)       This item applies if:

                     (a)  you acquire, manufacture or import taxable fuel between 1 July 2008 and 30 June 2012 (inclusive); and

                     (b)  you acquire, manufacture or import the fuel for use in carrying on your enterprise, other than:

                              (i)  for use in a vehicle travelling on a public road; or

                             (ii)  for incidental use (within the meaning of section 8 of the Energy Grants Act) in relation to a vehicle covered by subparagraph (i); or

                            (iii)  for use by you in generating electricity; or

                            (iv)  for use other than as a fuel; or

                             (v)  for use other than as a fuel in an internal combustion engine; or

                            (vi)  for use as heating oil; and

                     (c)  apart from this item, you would be entitled to a fuel tax credit under section 41-5 of the Fuel Tax Act.

(2)       You are not entitled to the credit under section 41-5 of the Fuel Tax Act unless you meet a condition in subitem (3), (5), (6) or (7).

Entitlement to a full credit if you would have been entitled to an on-road or off-road credit

(3)       You are not entitled to the credit under section 41-5 of the Fuel Tax Act unless you would have been entitled to an on-road credit in respect of the fuel, assuming:

                     (a)  that you had disregarded subsection 40(2) and sections 41 and 49A of the Energy Grants Act; and

                     (b)  that references in Part 3 of that Act to “purchase or import into Australia” were instead references to “acquire or manufacture in, or import into, Australia”.

(4)       If subitem (3) applies to you, you are taken, for the purposes of section 43-10 of the Fuel Tax Act, to have acquired, manufactured or imported the fuel to use, in a vehicle, for travelling on a public road.

Note:       The effect of this subitem is that the amount of the fuel tax credit is reduced under section 43-10 of the Fuel Tax Act by the amount of the road user charge.

(5)       You are entitled to the credit under section 41-5 of the Fuel Tax Act if you would have been entitled to an off-road credit in respect of the fuel, assuming:

                     (a)  that you had disregarded subsection 51(2) and sections 52 and 55A of the Energy Grants Act; and

                     (b)  that references in Part 4 of that Act to:

                              (i)  “purchase or import into Australia” were instead references to “acquire or manufacture in, or import into, Australia”; and

                             (ii)  “off-road diesel fuel” were instead references to the fuel.

Entitlement to half a credit if you would not have been entitled to a credit

(6)       You are entitled to the credit under section 41-5 of the Fuel Tax Act even if you do not meet a condition in subitem (3) or (5). However, subject to subitem (7), the amount of the credit is half of the amount it would have been under Division 43 of the Fuel Tax Act apart from this subitem.

Note:       You are entitled to a full credit under subitem (7) if you acquire, manufacture or import on-road alternative fuel between 1 July 2011 and 30 June 2012.

Entitlement to a full credit for alternative fuel acquired, manufactured or imported between 1 July 2011 and 30 June 2012

(7)       You are entitled to the credit under section 41-5 of the Fuel Tax Act if:

                     (a)  the fuel you acquire, manufacture or import is on-road alternative fuel; and

                     (b)  you acquire, manufacture or import the fuel between 1 July 2011 and 30 June 2012 (inclusive).

Fuel tax adjustment provisions

(8)       If this item applies, then sections 49 and 55 of the Energy Grants Act do not apply to the fuel.

Note:       Division 44 of the Fuel Tax Act 2006 deals with adjustments of fuel tax credits.



 

Part 4 Fuel tax credits for vehicles of 4.5 tonnes

12  Fuel acquired, manufactured or imported on or after 1 July 2006

(1)       This item applies if:

                     (a)  you acquire, manufacture or import on-road diesel fuel on or after 1 July 2006; and

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

                              (i)  for use in a vehicle with a gross vehicle mass of 4.5 tonnes for travelling on a public road; or

                             (ii)  for incidental use (within the meaning of section 8 of the Energy Grants Act) in relation to such a vehicle; or

                            (iii)  for use in such a vehicle in circumstances not covered by subparagraph (i) or (ii) in which you would have been entitled to an on-road credit under the Energy Grants Act, assuming that you had disregarded subsection 40(2) and sections 41 and 49A of the Energy Grants Act; and

                     (c)  you acquired the vehicle before 1 July 2006.

(2)       You are entitled to a credit under section 41-5 of the Fuel Tax Act if you would have been entitled to a credit in respect of the fuel under that section, disregarding section 41-20 of that Act.

(3)       To avoid doubt, this item continues to apply despite the repeal of the Energy Grants Act on 1 July 2012.



 

Part 5 Alternative fuel energy grants arising under the Energy Grants Act

Division 1—Energy grants claimed under the Energy Grants Act

Product Grants and Benefits Administration Act 2000

13  After paragraph 15(2)(d)

Insert:

                   (da)  if the claim is for payment of an energy grant in respect of an on-road credit for on-road alternative fuel—must be given to the Commissioner before the earlier of:

                              (i)  1 July 2011; and

                             (ii)  the end of 3 years after the start of the claim period; and

14  Paragraph 15(2)(e)

Before “must be”, insert “otherwise—”.

15  After subsection 15(2)

Insert:

          (2A)  Despite the provisions of Part 3 and the Energy Grants (Credits) Scheme Act 2003 , you are not entitled to an energy grant for an on-road credit for on-road alternative fuel if you have already given the Commissioner a return under the Fuel Tax Act 2006 that includes a net fuel amount that takes into account a decreasing fuel tax adjustment that relates to the fuel.

16  At the end of section 15

Add:

             (4)  In this section:

decreasing fuel tax adjustment has the meaning given by section 110-5 of the Fuel Tax Act 2006.

net fuel amount has the meaning given by section 110-5 of the Fuel Tax Act 2006.

on-road alternative fuel has the meaning given by section 4 of the Energy Grants (Credits) Scheme Act 2003 .

on-road credit means an on-road credit under Part 3 of the Energy Grants (Credits) Scheme Act 2003 .

Division 2—Energy grants claimed under the Fuel Tax Act

17  Grants claimed under the Fuel Tax Act

(1)       For the purposes of the Fuel Tax Act, you have a decreasing fuel tax adjustment if:

                     (a)  you purchased or imported on-road alternative fuel before 1 July 2010; and

                     (b)  you were entitled to an on-road credit in respect of the fuel (disregarding section 41 of the Energy Grants Act); and

                     (c)  you have not made a claim for payment of an energy grant in respect of the credit under section 15 of the Product Grants and Benefits Administration Act 2000 .

(2)       The amount of the adjustment is the amount of the credit that you were entitled to under the Energy Grants Act.

(3)       The adjustment is attributable to the tax period or fuel tax return period that you choose that ends before 1 July 2013.

(4)       If you have a decreasing fuel tax adjustment under this item, then:

                     (a)  Division 44 of the Fuel Tax Act (which is about fuel tax adjustments) applies as if a reference to a fuel tax credit were a reference to an on-road credit; and

                     (b)  section 49 of the Energy Grants Act does not apply to the fuel.



 

Part 6 Amendments relating to the repeal of the Energy Grants Act on 1 July 2012

Product Grants and Benefits Administration Act 2000

18  Section 5 (definition of energy grants scheme fuel )

Repeal the definition.

19  Section 8 (table item 3)

Repeal the item.

20  Subsection 9(4)

Repeal the subsection.

21  Subsections 27(1A) and (1B)

Repeal the subsections.

22  Section 27A

Repeal the section.



 

Part 7 Repeal of Energy Grants Act on 1 July 2012

Energy Grants (Credits) Scheme Act 2003

23  The whole of the Act

Repeal the Act.



 

Part 8 Other amendments relating to the transitional period

Division 1—Amendments commencing on 1 July 2007

Product Grants and Benefits Administration Act 2000

24  Section 5 (definition of energy grants scheme fuel )

Omit “on-road diesel fuel, on-road alternative fuel, or off-road diesel fuel,”, substitute “on-road alternative fuel”.

25  Paragraph 15(2)(db)

Repeal the paragraph.

26  Paragraph 15(2)(e)

Omit “otherwise—”.

27  Subsections 15(2A) and (4)

Repeal the subsections.

28  Paragraph 16A(1)(a)

Omit “designated grant”, substitute “cleaner fuel grant”.

29  Paragraph 16A(1)(a)

Omit “grant fuel”, substitute “cleaner fuel”.

30  Paragraph 16A(1)(b)

Omit “designated grant”, substitute “cleaner fuel grant”.

31  Subsection 16A(2)

Omit “designated grant”, substitute “cleaner fuel grant”.

32  Subsection 16A(2)

Omit “grant fuel”, substitute “cleaner fuel”.

33  Subsection 16A(3)

Repeal the subsection.

34  Subparagraph 27A(b)(i)

Omit “energy grant scheme fuel”, substitute “energy grants scheme fuel”.

Note:       The heading to section 27A is altered by omitting “ energy grant scheme fuel ” and substituting “ energy grants scheme fuel ”.

Division 2—Amendments commencing on 1 July 2010

Fuel Tax Act 2006

35  Subsection 65-10(1) (note)

Omit “item 9”, substitute “items 9 and 17”.

36  Section 110-5 (paragraph (b) of the definition of decreasing fuel tax adjustment )

Omit “item 9”, substitute “items 9 and 17”.

Division 3—Amendments commencing on 1 July 2012

Fuel Tax Act 2006

37  Subsection 41-5(1) (note 1)

Omit “of this Act and Part 3 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 ”.

38  Section 41-20 (note)

Repeal the note.

39  Paragraph 43-5(3)(b)

Repeal the paragraph.

Division 4—Amendments commencing on 1 July 2013

Fuel Tax Act 2006

40  Subsection 65-10(1) (note)

Repeal the note, substitute:

Note:          For another attribution rule for fuel tax adjustments, see subsection 46-5(4) (GST instalment taxpayers).

41  Section 110-5 (definition of decreasing fuel tax adjustment )

Repeal the definition, substitute:

decreasing fuel tax adjustment has the meaning given by section 44-5 and subsection 45-5(2).

Product Grants and Benefits Administration Act 2000

42  Paragraph 15(2)(da)

Repeal the paragraph.

43  Paragraph 15(2)(e)

Omit “otherwise—”.

44  Subsections 15(2A) and (4)

Repeal the subsections.