Fuel taxes in Australia
The fuel tax system in Australia is very similar to Canada in terms of its double-dipping tax rates, but varies in the case of exemptions including tax credits and certain excise free fuel sources. The double dipping (GST on top of excise) was fully compensated for by lowering the excise at the time the GST was introduced but is still used by motoring groups to convince motorists they are being ripped off. The excise stopped being indexed for inflation in 2001 (see History below) so the effective rate of the excise has been reducing and is now about 22% lower in 2011 dollars. Fuel taxes are handled by the Federal Government, including both an Excise Tax and a Goods and Services Tax or "GST". The tax collected is partly used to fund national road infrastructure projects and repair roads, however most of it (approximately 75%) goes into general revenue.
The Goods and Services Tax of 10% is charged and included in the price of all fuel purchases in Australia.
- A$0.38143 per litre on Unleaded Petrol fuel (Includes standard, blended (E10) and premium grades)
- A$0.38143/0.40143 per litre on Diesel fuel (Ultra-low sulphur/Conventional)
- A$0.05 per litre on Liquified petroleum gas used as fuel (Autogas or LPG as it is commonly known in Australia) till 30/06/2014. Increments of 2.5 cpl is applicable every financial year till July 2015 where the total excise will be A$0.125 per litre.
- A$0.38143 per litre on Ethanol fuel (Can be reduced/removed via Grants)
- A$0.38143 per litre on Biodiesel (Can be reduced/removed via Grants)
Note: Gasoline for use as fuel in an aircraft is taxed at $0.08869 per litre.
There are also a number of various grants and incentive schemes involving tax credits and rebates that generally apply to businesses or industries that rely heavily on the use of fuels, such as transport and aviation. There are also rebates that encourage the production and importation of clean fuels.
The states used to levy fuel franchise fees, but after Ha v New South Wales these were seen as unconstitutional, so the federal government introduced an excise and gave the revenue to the states.
The second phase of the Australian Fuel Tax Credits Scheme came into effect 1 July 2008. Under these changes, all off-road business use of fuel will be eligible for subsidies. In other words, organisations that do not run large vehicle fleets but consume large amounts of fuel business processes (e.g. manufacturing, construction, plant operations), are eligible for a fuel tax credit claim.
The State Government of Queensland used to provide an 8.354c/litre subsidy to most fuels bought (including Unleaded, Blended unleaded, LPG and Ethanol), which reflected the lower franchise fee Queensland charged compared to other states prior to 1997. This was usually reflected by an 8.354/litre difference at the pump price, as the subsidy is paid directly to retailers. This was removed on 1 July 2009.
- "Raise highway spend from fuel tax: NRMA". The Sydney Morning Herald. 2010-01-02.
- . ATO http://law.ato.gov.au/atolaw/view.htm?docid=PAC/BL030002/1. Retrieved 12 October 2013. Missing or empty
- Ireland, Ian (2001-06-04). "Excise Tariff Amendment Bill (No. 2) 2001". Bills Digest No. 142 2000-01. Department of the Parliamentary Library. Retrieved 2009-10-01.
- "Fuel Subsidy Scheme". Queensland Treasury. 2009-09-30. Retrieved 2009-10-01.