CARBON POLLUTION REDUCTION SCHEME (CPRS FUEL CREDITS) BILL 2009

i Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Contents

Chapter 1--Introduction

Part 1-1--Preliminary

Division 1--Preliminary

Subdivision 1-A--Preliminary

1-5

Short title ............................................................................................ 2

1-10

Commencement .................................................................................. 2

Part 1-2--Using this Act

Division 2--Overview and purpose

Subdivision 2-A--Overview and purpose

2-1

Overview and purpose ........................................................................ 4

Division 3--Explanation of the use of defined terms

Subdivision 3-A--Explanation of the use of defined terms

3-1

When defined terms are identified...................................................... 5

3-5

When terms are not identified............................................................. 5

3-10

Identifying the defined term in a definition ........................................ 6

Division 4--Status of Guides and other non-operative material

Subdivision 4-A--Status of Guides and other non-operative

material

4-1

Non-operative material ....................................................................... 7

4-5

Guides ................................................................................................. 7

4-10

Other material ..................................................................................... 7

Chapter 2--CPRS fuel credits

Part 2-1--Basic rules

Division 5--Object of this Chapter

Subdivision 5-A--Object of this Chapter

5-1

Object of this Chapter ......................................................................... 9

Division 6--CPRS fuel credits

Guide to Division 6

6-1

What this Division is about............................................................... 10

Subdivision 6-A--Entitlement rules for CPRS fuel credits

6-5

CPRS fuel credit for fuel to be used for fishing operations or

agriculture ......................................................................................... 11

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 ii

6-10

CPRS fuel credit for fuel to be used for incidental fishing

activities or incidental agricultural activities .................................... 12

6-15

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

vehicles ............................................................................................. 12

6-20

CPRS fuel credit for fuel to be used in certain vehicles

acquired before 1 July 2006.............................................................. 13

6-25

CPRS fuel credit for automotive liquid petroleum gas ..................... 14

6-30

CPRS fuel credit for automotive compressed natural gas ................ 15

6-35

CPRS fuel credit for automotive liquefied natural gas ..................... 15

Subdivision 6-B--Disentitlement rules for CPRS fuel credits

6-40

No CPRS fuel credit if another entity was previously entitled

to a credit .......................................................................................... 16

6-45

No CPRS fuel credit for fuel to be used in motor vehicles

that do not meet environmental criteria ............................................ 16

6-50

No CPRS fuel credit for fuel to be used in aircraft........................... 17

Division 7--Working out your CPRS fuel credit

Guide to Division 7

7-1

What this Division is about............................................................... 18

Subdivision 7-A--Working out your CPRS fuel credit

7-5

Working out your CPRS fuel credit.................................................. 18

Division 8--Increasing and decreasing CPRS fuel credit

adjustments

Guide to Division 8

8-1

What this Division is about............................................................... 21

Subdivision 8-A--Increasing and decreasing CPRS fuel credit

adjustments

8-5

Increasing and decreasing CPRS fuel credit adjustments for

change of circumstances ................................................................... 21

8-10

Increasing CPRS fuel credit adjustment for failure to use fuel ........ 22

Part 2-2--Special rules

Division 9--Instalment taxpayers

Guide to Division 9

9-1

What this Division is about............................................................... 23

Subdivision 9-A--Instalment taxpayers

9-5

Instalment taxpayers ......................................................................... 23

iii Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Chapter 3--Common rules

Part 3-1--Attribution rules

Division 10--Attribution rules

Guide to Division 10

10-1

What this Division is about............................................................... 25

Subdivision 10-A--Attribution rules

10-5

Attribution rules for CPRS fuel credits ............................................ 26

10-10

Attribution rules for CPRS fuel credit adjustments .......................... 27

Chapter 4--Miscellaneous

Part 4-1--Miscellaneous

Division 11--Miscellaneous

Guide to Division 11

11-1

What this Division is about............................................................... 28

Subdivision 11-A--Miscellaneous

11-5

Commissioner has general administration of this Act ...................... 28

11-10

Application of this Act to the Commonwealth ................................. 29

11-15

Regulations ....................................................................................... 29

Chapter 5--Interpretation

Part 5-1--Rules for interpreting this Act

Division 12--Rules for interpreting this Act

Subdivision 12-A--Rules for interpreting this Act

12-1

What forms part of this Act .............................................................. 30

12-5

What does not form part of this Act ................................................. 30

12-10

Guides, and their role in interpreting this Act .................................. 31

Part 5-2--Dictionary

Division 13--Dictionary

Subdivision 13-A--Dictionary

13-1

Dictionary ......................................................................................... 32

Chapter 1 Introduction

Part 1-1 Preliminary

Division 1 Preliminary

Section 1-5

2 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Subdivision 1-A--Preliminary

Table of Sections

1-5

Short title

1-10

Commencement

1-5 Short title

This Act may be cited as the Carbon Pollution Reduction Scheme

(CPRS Fuel Credits) Act 2009.

1-10 Comme ncement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1-5

and 1-10 and

anything in this

Act not elsewhere

covered by this

table

The day on which this Act receives the

Royal Assent.

2. Sections 2-1 to

13-1

1 Ju ly 2011.

However, the provision(s) do not commence

at all if section 3 of the Carbon Pollution

Reduction Scheme Act 2009 does not

commence before 1 July 2011.

1 Ju ly 2011

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

Chapter 1 Introduction

Part 1-2 Using this Act

Division 2 Overview and purpose

Section 2-1

4 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Part 1-2--Using this Act

Division 2--Overview and purpose

Table of Subdivisions

2-A

Overview and purpose

Subdivision 2-A--Overview and purpose

Table of Sections

2-1

Overview and purpose

2-1 Overvie w and purpose

This Act provides for CPRS fuel credits to offset the impact of the

carbon pollution reduction scheme.

Administration of CPRS fuel credits is dealt with under the Fuel

Tax Act 2006.

Introduction Chapter 1

Using this Act Part 1-2

Exp lanation of the use of defined terms Division 3

Section 3-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 5

Division 3--Explanation of the use of defined terms

Table of Subdivisions

3-A

Explanation of the use of defined terms

Subdivision 3-A--Explanation of the use of defined terms

Table of Sections

3-1

When defined terms are identified

3-5

When terms are not identified

3-10

Identifying the defined term in a definition

3-1 When defined te rms are identified

(1) Many of the terms used in this Act are defined.

(2) Most defined terms in this Act are identified by an asterisk

appearing at the start of the term: as in "

enterprise". The footnote

that goes with the asterisk contains a signpost to the Dictionary

definitions at section 13-1.

3-5 When terms are not identified

(1) Once a defined term has been identified by an asterisk, later

occurrences of the term in the same subsection are not usually

asterisked.

(2) Terms are not asterisked in the non-operative material contained in

this Act.

Note:

The non-operative material is described in Division 4.

(3) The following basic terms used throughout the Act are not

identified with an asterisk.

Chapter 1 Introduction

Part 1-2 Using this Act

Division 3 Exp lanation of the use of defined terms

Section 3-10

6 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Common definitions that are not asterisked

Item

This term:

Australia

Co mmissioner

CPRS fuel cred it

entity

fuel

you

3-10 Identifying the defined te rm in a definition

Within a definition, the defined term is identified by bold italics.

Introduction Chapter 1

Using this Act Part 1-2

Status of Guides and other non-operative material Division 4

Section 4-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 7

Division 4--Status of Guides and other non-operative

material

Table of Subdivisions

4-A

Status of Guides and other non-operative material

Subdivision 4-A--Status of Guides and other non-operative

material

Table of Sections

4-1

Non-operative material

4-5

Guides

4-10

Other material

4-1 Non-operative material

In addition to the operative provisions themselves, this Act

contains other material to help you identify accurately and quickly

the provisions that are relevant to you and to help you understand

them.

This other material falls into 2 main categories.

4-5 Guides

The first is the "Guides". A

Guide consists of sections under a

heading indicating that what follows is a Guide to a particular

Subdivision, Division etc.

Guides form part of this Act but are kept separate from the

operative provisions. In interpreting an operative provision, a

Guide may only be considered for limited purposes. These are set

out in section 12-10.

4-10 Other material

The other category consists of material such as notes and

examples. These also form part of the Act. Generally, they are

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

Object of this Chapter Division 5

Section 5-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 9

Chapter 2--CPRS fuel credits

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.

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 6 CPRS fuel credits

Section 6-1

10 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

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;

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

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

CPRS fuel cred its Division 6

Section 6-5

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 11

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:

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).

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 6 CPRS fuel credits

Section 6-10

12 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

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:

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:

carrying on your

enterprise; and

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

CPRS fuel cred its Division 6

Section 6-20

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 13

(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.

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 6 CPRS fuel credits

Section 6-25

14 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

(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:

vehicle travelling on a road; and

(d) because of the supply, or the application to own use, you are

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.

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

CPRS fuel cred its Division 6

Section 6-30

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 15

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:

in a vehicle travelling on a road; and

(d) because of the supply, or the application to own use, you are

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:

vehicle travelling on a road; and

(d) because of the supply, or the application to own use, you are

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).

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 6 CPRS fuel credits

Section 6-40

16 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

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 anothe r 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 environme ntal 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;

Rules 1999;

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

CPRS fuel cred its Division 6

Section 6-50

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 17

(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

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 for fuel 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).

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 7 Working out your CPRS fuel credit

Section 7-1

18 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

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

(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:

Adjustment factor

Adjusted volume

Relevant rate

$0.38143

specified in

of the fuel

of duty

subsection (2)

where:

adjusted volume of the fuel means:

(a) if the fuel:

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

Working out your CPRS fuel cred it Division 7

Section 7-5

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 19

(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

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 ...

you are entitled to the CPRS fuel credit

under section 6-5 (fishing operations or

agriculture)

(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 Ju ly

2011; and

0.5

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 7 Working out your CPRS fuel credit

Section 7-5

20 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Adjustment factor

Item

If ...

the adjustment factor is ...

(ii) ending at the end of 30 June 2012

(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 Ju ly

2012; and

(ii) ending at the end of 30 June 2014

you are entitled to the CPRS fuel credit

under section 6-15 (heavy on-road vehicles)

you are entitled to the CPRS fuel credit

under section 6-20 (certain vehicles

acquired before 1 July 2006)

you are entitled to the CPRS fuel credit

under section 6-25 (automotive liquid

petroleum gas)

0.67

you are entitled to the CPRS fuel credit

under section 6-30 (automotive co mpressed

natural gas)

0.78

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).

CPRS fuel cred its Chapter 2

Basic ru les Part 2-1

Increasing and decreasing CPRS fuel cred it adjustments Division 8

Section 8-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 21

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

Chapter 2 CPRS fuel credits

Part 2-1 Basic ru les

Division 8 Increasing and decreasing CPRS fuel credit adjustments

Section 8-10

22 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

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.

CPRS fuel cred its Chapter 2

Special rules Part 2-2

Instalment taxpayers Division 9

Section 9-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 23

Part 2-2--Special rules

Division 9--Instalment taxpayers

Table of Subdivisions

Guide to Division 9

9-A

Instalment taxpayers

Guide to Division 9

9-1 What this Division is about

If you are a GST instalment taxpayer, you work out and claim your

CPRS fuel credits for GST instalment quarters, instead of the tax

period you use for the GST. However, you can choose not to give a

return for the first 3 GST instalment quarters in a financial year

(but if you have an increasing CPRS fuel credit adjustment, you

must give a return for the last quarter in the year).

Subdivision 9-A--Instalment taxpayers

Table of Sections

9-5

Instalment taxpayers

9-5 Instalme nt taxpaye rs

(1) If you are a

GST instalment payer, you must treat each

GST

instalment quarter as if it were a

tax period.

GST instalment quarters to be treated as tax periods

(2) For the purposes of working out under subsection 10-5(1) which

GST instalment quarter a CPRS fuel credit is attributable to, you

must treat each GST instalment quarter as if, in the

GST Act, the

quarter were a

tax period.

Chapter 2 CPRS fuel credits

Part 2-2 Special rules

Division 9 Instalment taxpayers

Section 9-5

24 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Choice to give a return for first 3 quarters

(3) You may choose whether to give the Commissioner a return for

any of the first 3

GST instalment quarters in a

financial year. If

you do so, you must give the Commissioner your return on or

before the day on which you are, or would be, required to pay your

GST instalment to the Commissioner for the quarter (disregarding

section 162-80 of the

GST Act).

Note:

Section 162-80 of the GST Act allows certain entities to pay only 2

GST instalments for a financial year.

(4) If you choose not to give a return for any of those quarters, then

any CPRS fuel credit or

CPRS fuel credit adjustment that is

attributable to that quarter:

(a) ceases to be attributable to that quarter; and

(b) becomes attributable to the first quarter for which you give

the Commissioner a return.

Note:

See subsection 10-5(5) if your return for a quarter does not include a

CPRS fuel credit that is attributable, under this subsection, to the

quarter.

Requirement to give a return for final quarter

(5) If you have an

increasing CPRS fuel credit adjustment that is (or,

under subsection (4), would be) attributable to the last

GST

instalment quarter in the

financial year, you must give the

Commissioner a return for that quarter on or before the day on

which you are, or would be, required to pay your

GST instalment

to the Commissioner for the quarter (disregarding section 162-80

of the

GST Act).

Co mmon ru les Chapter 3

Attribution rules Part 3-1

Attribution rules Division 10

Section 10-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 25

Chapter 3--Common rules

Part 3-1--Attribution rules

Division 10--Attribution rules

Table of Subdivisions

Guide to Division 10

10-A

Attribution rules

Guide to Division 10

10-1 What this Division is about

CPRS fuel credits and CPRS fuel credit adjustments are attributed

to tax periods (or fuel tax return periods).

If you are registered for GST, or required to be registered for GST,

your CPRS fuel credit for fuel that you acquire or import is

attributed to the same period as your input tax credit for the fuel. If

you are neither registered for GST, nor required to be registered for

GST, your CPRS fuel credit for fuel that you acquire or import is

attributed to the fuel tax return period in which you acquire or

import the fuel.

Your CPRS fuel credit for fuel that you manufacture is attributed

to the tax period or fuel tax return period in which the fuel was

entered for home consumption.

Your CPRS fuel credit for fuel that you supply, or apply to your

own use, is attributed to the tax period or fuel tax return period in

which you supply, or apply to your own use, the fuel.

CPRS fuel credit adjustments are attributed to the tax period (or

fuel tax return period) in which you become aware of the

adjustment.

Chapter 3 Co mmon rules

Part 3-1 Attribution rules

Division 10 Attribution rules

Section 10-5

26 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Subdivision 10-A--Attribution rules

Table of Sections

10-5

Attribution rules for CPRS fuel credits

10-10

Attribution rules for CPRS fuel credit adjustments

10-5 Attribution rules for CPRS fuel credits

Attribution rules for fuel you acquire or import

(1) If you are

registered for GST, or

required to be registered for

GST, your CPRS fuel credit under section 6-5, 6-10, 6-15 or 6-20

for fuel that you acquire or import is attributable to:

(a) the same

tax period that your

input tax credit for the fuel is

attributable to under the

GST Act; or

(b) the same tax period that an input tax credit would have been

attributable to under that Act if the fuel had been a

creditable acquisition or a

creditable importation.

(2) If you are neither

registered for GST, nor

required to be

registered for GST, your CPRS fuel credit under section 6-5, 6-10,

6-15 or 6-20 for fuel that you acquire or import is attributable to

the

fuel tax return period in which you acquire or import the fuel.

Attribution rule for fuel you manufacture

(3) Your CPRS fuel credit under section 6-5, 6-10, 6-15 or 6-20 for

fuel that you manufacture is attributable to the

tax period or

fuel

tax return period in which the fuel was entered for home

consumption (within the meaning of the Excise Act 1901).

Attribution rule for fuel that you supply or that you apply to your

own use

(4) Your CPRS fuel credit under section 6-25, 6-30 or 6-35 for fuel

that you

supply, or apply to your own use, is attributable to the

tax period or

fuel tax return period in which you supply, or apply

to your own use, the fuel.

Co mmon ru les Chapter 3

Attribution rules Part 3-1

Attribution rules Division 10

Section 10-10

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 27

Later attribution rule for CPRS fuel credits

(5) If your return for a

tax period or

fuel tax return period states a

net fuel amount that does not take into account a CPRS fuel credit

that is attributable to the period mentioned in subsection (1), (2),

(3) or (4) then the credit:

(a) ceases to be attributable to that period; and

(b) becomes attributable to the first period for which you give

the Commissioner a return that does take it into account.

Note:

For another attribution rule for CPRS fuel credits, see subsection

9-5(4) (GST instalment taxpayers).

10-10 Attribution rules for CPRS fuel credit adjustments

CPRS fuel credit adjustment is attributable to the

tax period or

fuel tax return period in which you become aware of the

adjustment.

Note:

For attribution rules for other CPRS fuel credit adjustments, see

subsection 9-5(4) (GST instalment taxpayers).

Chapter 4 Miscellaneous

Part 4-1 Miscellaneous

Division 11 Miscellaneous

Section 11-1

28 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Chapter 4--Miscellaneous

Part 4-1--Miscellaneous

Division 11--Miscellaneous

Table of Subdivisions

Guide to Division 11

11-A

Miscellaneous

Guide to Division 11

11-1 What this Division is about

This Division provides for the following matters:

(a) the Commissioner to have the general

administration of this Act;

(b) the application of this Act to the Commonwealth;

Subdivision 11-A--Miscellaneous

Table of Sections

11-5

Commissioner has general administration of this Act

11-10

Application of this Act to the Commonwealth

11-15

Regulations

11-5 Commissioner has general administration of this Act

The Commissioner has the general administration of this Act.

Note:

An effect of this provision is that the Taxation Administration Act

1953 applies to this Act as a taxation law.

Miscellaneous Chapter 4

Miscellaneous Part 4-1

Miscellaneous Division 11

Section 11-10

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 29

11-10 Application of this Act to the Commonwealth

(1) It is the Parliament's intention that the Commonwealth and

untaxable Commonwealth entities should:

(a) be notionally entitled to CPRS fuel credits; and

(b) have notional

CPRS fuel credit adjustments.

Note:

The fuel tax law binds the Crown in right of the States, the Australian

Capital Territory and the Northern Territory (see section 1-15 of the

Fuel Tax Act 2006).

(2) The

Finance Minister may give such written directions as are

necessary or convenient for carrying out or giving effect to

subsection (1) and, in particular, may give directions in relation to

the transfer of money within an account, or between accounts,

operated by the Commonwealth or an

untaxable Commonwealth

entity.

(3) Directions under subsection (2) have effect, and must be complied

with, despite any other Commonwealth law.

(4) A direction given under subsection (2) is not a legislative

instrument.

11-15 Regulations

The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or

giving effect to this Act.

Chapter 5 Interpretation

Part 5-1 Rules for interpreting this Act

Division 12 Rules for interpreting this Act

Section 12-1

30 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Chapter 5--Interpretation

Part 5-1--Rules for interpreting this Act

Division 12--Rules for interpreting this Act

Table of Subdivisions

12-A

Rules for interpreting this Act

Subdivision 12-A--Rules for interpreting this Act

Table of Sections

12-1

What forms part of this Act

12-5

What does not form part of this Act

12-10

Guides, and their role in interpreting this Act

12-1 What forms part of this Act

(1) The following form part of this Act:

(a) the headings to the Chapters, Parts, Divisions and

Subdivisions of this Act;

(b)

Guides;

(d) the headings for groups of sections of this Act (group

headings);

(e) the notes and examples (however described) that follow

provisions of this Act.

(2) The asterisks used to identify defined terms form part of this Act.

However, if a term is not identified by an asterisk, disregard that

fact in deciding whether or not to apply to that term a definition or

other interpretation provision.

12-5 What does not form part of this Act

The following do not form part of this Act:

(a) footnotes and endnotes;

Interpretation Chapter 5

Rules for interpreting this Act Part 5-1

Rules for interpreting this Act Division 12

Section 12-10

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 31

(b) Tables of Subdivisions;

12-10 Guides, and their role in interpreting this Act

(1) A Guide consists of:

(a) sections under a heading indicating that what follows is a

Guide to a particular Subdivision, Division etc.; or

(b) a Subdivision, Division or Part that is identified as a Guide

by a provision in the Subdivision, Division or Part.

(2)

Guides form part of this Act, but they are kept separate from the

operative provisions. In interpreting an operative provision, a

Guide may only be considered:

(a) in determining the purpose or object underlying the

provision; or

(b) to confirm that the provision's meaning is the ordinary

meaning conveyed by its text, taking into account its context

in the Act and the purpose or object underlying the provision;

ambiguous or obscure; or

(d) in determining the provision's meaning if the ordinary

meaning conveyed by its text, taking into account its context

in the Act and the purpose or object underlying the provision,

leads to a result that is manifestly absurd or is unreasonable.

Chapter 5 Interpretation

Part 5-2 Dictionary

Division 13 Dictionary

Section 13-1

32 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

Part 5-2--Dictionary

Division 13--Dictionary

Table of Subdivisions

13-A

Dictionary

Subdivision 13-A--Dictionary

Table of Sections

13-1

Dictionary

13-1 Dictionary

In this Act:

agriculture has the same meaning as in the Energy Grants

(Credits) Scheme Act 2003, but does not include an activity

relating to

carbon sequestration. For the purposes of this

definition, disregard the repeal of that Act on 1 July 2012.

amount includes a nil amount.

Australia has the meaning given by section 195-1 of the

GST Act.

biodiesel has the same meaning as in the Excise Tariff Act 1921.

carbon pollution reduction scheme has the same meaning as in the

Carbon Pollution Reduction Scheme Act 2009.

carbon sequestration has the meaning given by section 995-1 of

the Income Tax Assessment Act 1997.

carrying on an

enterprise has the meaning given by section 195-1

of the

GST Act.

Commissioner means the Commissioner of Taxation.

Note:

The office of Commissioner of Taxation is created by section 4 of the

Taxation Administration Act 1953.

Interpretation Chapter 5

Dictionary Part 5-2

Dictionary Division 13

Section 13-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 33

compressed natural gas has the same meaning as in the National

Greenhouse and Energy Reporting Regulations 2008.

CPRS fuel credit means an entitlement arising under section 6-5,

6-10, 6-15, 6-20, 6-25, 6-30 or 6-35.

creditable acquisition has the meaning given by section 195-1 of

the

GST Act.

creditable importation has the meaning given by section 195-1 of

the

GST Act.

decreasing CPRS fuel credit adjustment has the meaning given by

section 8-5.

eligible financial year has the same meaning as in the Carbon

Pollution Reduction Scheme Act 2009.

eligible taxable fuel means:

(a) excisable goods (within the meaning of the Excise Act 1901)

classified to subitem 10.1, 10.2, 10.3, 10.5, 10.7, 10.10,

10.11, 10.12, 10.15, 10.16, 10.18, 10.28 or 10.30 of the

Schedule of the Excise Tariff Act 1921; or

(b) imported goods (within the meaning of the Excise Act 1901)

that would be classified to those subitems if they were

manufactured in Australia.

enterprise has the meaning given by section 9-20 of the

GST Act.

entity has the meaning given by section 184-1 of the

GST Act.

Finance Minister has the meaning given by section 195-1 of the

GST Act.

financial year has the meaning given by section 195-1 of the

GST

Act.

fishing operations has the same meaning as in the Energy Grants

(Credits) Scheme Act 2003. For the purposes of this definition,

disregard the repeal of that Act on 1 July 2012.

fuel means:

(a)

eligible taxable fuel; or

Chapter 5 Interpretation

Part 5-2 Dictionary

Division 13 Dictionary

Section 13-1

34 Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009

(b)

liquid petroleum gas; or

(c)

compressed natural gas; or

(d) liquefied natural gas.

fuel tax law has the meaning given by section 110-5 of the Fuel

Tax Act 2006.

fuel tax return period has the meaning given by section 61-20 of

the Fuel Tax Act 2006.

GST Act means the A New Tax System (Goods and Services Tax)

Act 1999.

GST instalment has the meaning given by subsection 162-70(1) of

the

GST Act.

GST instalment payer has the meaning given by section 162-50 of

the

GST Act.

GST instalment quarter has the meaning given by subsections

162-70(2) and (3) of the

GST Act.

Guide has the meaning given by section 12-10.

incidental agricultural activities has the meaning given by the

regulations.

incidental fishing activities has the meaning given by the

regulations.

increasing CPRS fuel credit adjustment has the meaning given by

sections 8-5 and 8-10.

input tax credit has the meaning given by section 195-1 of the

GST Act.

liable entity has the same meaning as in the Carbon Pollution

Reduction Scheme Act 2009.

liquid petroleum gas has the same meaning as in the National

Greenhouse and Energy Reporting Regulations 2008.

Interpretation Chapter 5

Dictionary Part 5-2

Dictionary Division 13

Section 13-1

Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 No. , 2009 35

liquid petroleum gas marketer has the same meaning as in the

Carbon Pollution Reduction Scheme Act 2009.

motor vehicle has the meaning given by section 995-1 of the

Income Tax Assessment Act 1997.

net fuel amount has the meaning given by section 60-5 of the Fuel

Tax Act 2006.

primary production business has the meaning given by subsection

995-1(1) of the Income Tax Assessment Act 1997.

registered for GST has the meaning given to registered by

section 195-1 of the

GST Act.

required to be registered for GST has the meaning given to

required to be registered by section 195-1 of the

GST Act.

supply has the same meaning as in the Carbon Pollution Reduction

Scheme Act 2009.

tax period has the meaning given by section 195-1 of the

GST

Act.

Transport Department means the Department administered by the

Transport Minister.

Transport Minister means the Minister who administers the Motor

Vehicle Standards Act 1989.

Transport Secretary means the Secretary of the

Transport

Department.

untaxable Commonwealth entity has the meaning given by

section 177-1 of the

GST Act.

you: if a provision of this Act uses the expression you, it applies to

entities generally, unless its application is expressly limited.

Note:

The expression you is not used in provisions that apply only to entities

that are not individuals.

Commonwealth of Australia Bills

CARBON POLLUTION REDUCTION SCHEME (CPRS FUEL CREDITS) BILL 2009