FUEL TAX BILL 2006

2004-2005-2006

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Fuel Tax Bill 2006

No. , 2006

(Treasury)

A Bill for an Act about fuel tax and fuel tax credits, and for related purposes

Fuel Tax Bill 2006 No. , 2006

Fuel Tax Bill 2006 No. , 2006
Contents
Chapter 1--Introduction 1
Part 1-1--Preliminary 1
Division 1--Preliminary 1
Subdivision 1-A--Preliminary 2

1-5 Short title 2

1-10 Commencement 2

1-15 States and Territories are bound by the fuel tax law 2
Part 1-2--Using this Act 3
Division 2--Overview and purpose of the fuel tax law 3
Subdivision 2-A--Overview and purpose of the fuel tax law 3

2-1 Overview and purpose of the fuel tax law 3
Division 3--Explanation of the use of defined terms 4
Subdivision 3-A--Explanation of the use of defined terms 4

3-1 When defined terms are identified 4

3-5 When terms are not identified 4

3-10 Identifying the defined term in a definition 5
Division 4--Status of Guides and other non-operative material 6
Subdivision 4-A--Status of Guides and other non-operative material 6

4-1 Non-operative material 6

4-5 Guides 6

4-10 Other material 7
Chapter 3--Fuel tax credits 8
Part 3-1--Basic rules 8
Division 40--Object of this Chapter 8
Subdivision 40-A--Object of this Chapter 8

40-5 Object of this Chapter 8
Division 41--Fuel tax credits for business taxpayers and non-profit bodies 9
Guide to Division 41 9

41-1 What this Division is about 9
Subdivision 41-A--Entitlement rules for fuel tax credits 10

41-5 Fuel tax credit for fuel to be used in carrying on your enterprise 10

41-10 Fuel tax credit for fuel to be sold or packaged 11
Subdivision 41-B--Disentitlement rules for fuel tax credits 11

41-15 No fuel tax credit if another entity was previously entitled to a credit 11

41-20 No fuel tax credit for fuel to be used in light vehicles on a public road 12

41-25 No fuel tax credit for fuel to be used in motor vehicles that do not meet environmental criteria 12

41-30 No fuel tax credit for fuel to be used in aircraft 13
Division 42--Fuel tax credit for non-business taxpayers 14
Guide to Division 42 14

42-1 What this Division is about 14
Subdivision 42-A--Fuel tax credit for non-business taxpayers 14

42-5 Fuel tax credit for fuel to be used in generating electricity for domestic use 14
Division 43--Working out your fuel tax credit 15
Guide to Division 43 15

43-1 What this Division is about 15
Subdivision 43-A--Working out your fuel tax credit 15

43-5 Working out your fuel tax credit 15

43-10 Reducing the amount of your fuel tax credit 17
Division 44--Increasing and decreasing fuel tax adjustments 19
Guide to Division 44 19

44-1 What this Division is about 19
Subdivision 44-A--Increasing and decreasing fuel tax adjustments 19

44-5 Increasing and decreasing fuel tax adjustments for change of circumstances 20

44-10 Increasing fuel tax adjustment for failure to use or make a taxable supply of fuel 20
Part 3-3--Special rules 22
Division 45--Greenhouse Challenge Plus Programme 22
Guide to Division 45 22

45-1 What this Division is about 22
Subdivision 45-A--Greenhouse Challenge Plus Programme 22

45-5 Certain entities to be members of Greenhouse Challenge Plus Programme 22
Division 46--Instalment taxpayers 24
Guide to Division 46 24

46-1 What this Division is about 24
Subdivision 46-A--Instalment taxpayers 24

46-5 Instalment taxpayers 24
Chapter 4--Common rules 26
Part 4-1--Net fuel amounts 26
Division 60--Net fuel amounts 26
Guide to Division 60 26

60-1 What this Division is about 26
Subdivision 60-A--Net fuel amounts 26

60-5 Working out your net fuel amount 26
Division 61--Returns, refunds and payments 28
Guide to Division 61 28

61-1 What this Division is about 28
Subdivision 61-A--Returns, refunds and payments 28

61-5 Entitlement to a refund 28

61-10 Requirement to pay a net fuel amount 29

61-15 When you must give the Commissioner your return 29

61-20 Fuel tax return periods 30
Part 4-2--Attribution rules 31
Division 65--Attribution rules 31
Guide to Division 65 31

65-1 What this Division is about 31
Subdivision 65-A--Attribution rules 31

65-5 Attribution rules for fuel tax credits 32

65-10 Attribution rules for fuel tax adjustments 33
Part 4-3--Special rules about entities 34
Division 70--Special rules about entities 34
Guide to Division 70 34

70-1 What this Division is about 34
Subdivision 70-A--Special rules about entities and how they are organised 34

70-5 Application of fuel tax law to GST groups and joint ventures 35

70-10 Entry and exit history rules 35

70-15 Consolidating joint venture returns 36

70-20 Application of fuel tax law to religious practitioners 36

70-25 Application of fuel tax law to incapacitated entities 36

70-30 Application of fuel tax law to GST branches, resident agents and non-profit sub-entities 36
Subdivision 70-B--Government entities 37

70-35 Application of fuel tax law to government entities 37
Part 4-4--Anti-avoidance 38
Division 75--Anti-avoidance 38
Guide to Division 75 38

75-1 What this Division is about 38
Subdivision 75-A--Application of this Division 38

75-5 When does this Division operate? 39

75-10 When does an entity get a fuel tax benefit from a scheme? 39

75-15 Matters to be considered in determining purpose or effect 40
Subdivision 75-B--Commissioner may negate effects of schemes for fuel tax benefits 42

75-40 Commissioner may negate avoider's fuel tax benefits 42

75-45 Commissioner may reduce an entity's net fuel amount to compensate 42

75-50 Refund payable in accordance with declaration 44

75-55 Commissioner may disregard scheme in making declarations 44

75-60 One declaration may cover several tax periods or fuel tax return periods 44

75-65 Commissioner must give copy of declaration to entity affected 44
Part 4-5--Miscellaneous 46
Division 95--Miscellaneous 46
Guide to Division 95 46

95-1 What this Division is about 46
Subdivision 95-A--Miscellaneous 46

95-5 Determination of blends that no longer constitute fuels 46

95-10 Application of this law to the Commonwealth 47

95-100 Regulations 47
Chapter 5--Interpretation 49
Part 5-1--Rules for interpreting this Act 49
Division 105--Rules for interpreting this Act 49
Subdivision 105-A--Rules for interpreting this Act 49

105-1 What forms part of this Act 49

105-5 What does not form part of this Act 50

105-10 Guides, and their role in interpreting this Act 50
Part 5-3--Dictionary 51
Division 110--Dictionary 51
Subdivision 110-A--Dictionary 51

110-5 Dictionary 51

Chapter 4 Common rules
Part 4-1 Net fuel amounts
Division 60 Net fuel amounts

Section 60-1
Fuel tax credits Chapter 3
Special rules Part 3-3
Instalment taxpayers Division 46

Section 46-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary at section 110-5.

Fuel Tax Bill 2006 No. , 2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary at section 110-5.

Fuel Tax Bill 2006 No. , 2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 110-5.

Fuel Tax Bill 2006 No. , 2006
A Bill for an Act about fuel tax and fuel tax credits, and for related purposes
The Parliament of Australia enacts:

Chapter 1--Introduction
Part 1-1--Preliminary
Division 1--Preliminary
Table of Subdivisions

1-A Preliminary
Subdivision 1-A--Preliminary
Table of Sections

1-5 Short title

1-10 Commencement

1-15 States and Territories are bound by the fuel tax law

1-5 Short title

This Act may be cited as the Fuel Tax Act 2006.

1-10 Commencement

This Act commences on 1 July 2006.

1-15 States and Territories are bound by the fuel tax law

The *fuel tax law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.

Note: For the application of this Act to the Commonwealth, see section 95-10.

Part 1-2--Using this Act
Division 2--Overview and purpose of the fuel tax law
Table of Subdivisions

2-A Overview and purpose of the fuel tax law
Subdivision 2-A--Overview and purpose of the fuel tax law
Table of Sections

2-1 Overview and purpose of the fuel tax law

This Act provides a single system of fuel tax credits. Fuel tax credits are paid to reduce or remove the incidence of fuel tax levied on taxable fuels, ensuring that, generally, fuel tax is effectively only applied to:

(a) fuel used in private vehicles and for certain other private purposes; and

(b) fuel used on-road in light vehicles for business purposes.

Liability for fuel tax currently arises under the Excise Act 1901, the Excise Tariff Act 1921, the Customs Act 1901 and the Customs Tariff Act 1995.

It is intended that this Act be extended to apply to certain compressed and liquefied gaseous fuels.

The administrative aspects of this Act (such as your rights, obligations and payment arrangements) are aligned as closely as possible to the administrative aspects of other indirect taxes (primarily, the GST), and other taxes administered by the Commissioner, to reduce your compliance costs.

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 terms are identified

(1) Many of the terms used in the *fuel tax law 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 110-5.

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.

Common definitions that are not asterisked

Item
This term:

1
Australia

2
Commissioner

3
entity

4
fuel tax

5
fuel tax credit

6
taxable fuel

7
you

3-10 Identifying the defined term in a definition

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

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 105-10.

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 distinguished by type size from the operative provisions, but are not kept separate from them.

Chapter 3--Fuel tax credits
Part 3-1--Basic rules
Division 40--Object of this Chapter
Table of Subdivisions

40-A Object of this Chapter
Subdivision 40-A--Object of this Chapter
Table of Sections

40-5 Object of this Chapter

(1) The object of this Chapter is to provide a single system of fuel tax credits to ensure that, generally, fuel tax is effectively only applied to:

(a) fuel used in private vehicles and for certain other private purposes; and

(b) fuel used on-road in light vehicles for business purposes.

(2) To do this, a fuel tax credit is provided to reduce or remove the incidence of fuel tax applied to:

(a) fuel used in *carrying on your *enterprise (other than fuel used on-road in light vehicles); and

(b) fuel used for domestic heating and domestic electricity generation; and

Note: However, other provisions of this Act might affect your entitlement to a fuel tax credit.

Division 41--Fuel tax credits for business taxpayers and non-profit bodies
Table of Subdivisions

Guide to Division 41

41-A Entitlement rules for fuel tax credits

41-B Disentitlement rules for fuel tax credits
Guide to Division 41

41-1 What this Division is about
Fuel tax credits are provided under Subdivision 41-A to business taxpayers who are registered, or required to be registered, for GST (and to some non-profit bodies) in 2 situations.

The first situation is where you acquire, manufacture or import fuel to use in carrying on your enterprise (whether the fuel is used as fuel or otherwise). The second situation is where you acquire, manufacture or import fuel to make a taxable supply to a private user for domestic heating or to package the fuel for the purpose of making a taxable supply of it for use other than in an internal combustion engine.

However, fuel tax credits are denied under Subdivision 41-B if:

(a) another person is already entitled to a fuel tax credit in respect of the fuel; or

(b) the fuel is for use on-road in light vehicles; or

(d) the fuel is for use in aircraft.

Subdivision 41-A--Entitlement rules for fuel tax credits
Table of Sections

41-5 Fuel tax credit for fuel to be used in carrying on your enterprise

41-10 Fuel tax credit for fuel to be sold or packaged

41-5 Fuel tax credit for fuel to be used in carrying on your enterprise

(1) You are entitled to a fuel tax credit for taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that you do so for use in *carrying on your *enterprise.

Note 1: Other provisions can affect your entitlement to the credit. (For example, see Subdivisions 41-B and 45-A of this Act and Part 3 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006.)
Note 2: Fuel is taken to have been used if it is blended as specified in a determination made under section 95-5.

Registration for GST

(2) However, you are only entitled to the fuel tax 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.

41-10 Fuel tax credit for fuel to be sold or packaged

(1) You are entitled to a fuel tax credit for taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that:

(a) you do so to make a *taxable supply of the fuel to an entity; and

(b) the fuel is kerosene, heating oil or any other fuel prescribed by the regulations; and

(i) will not use the fuel in *carrying on an *enterprise; but

(ii) will use the fuel for domestic heating.

(2) You are entitled to a fuel tax credit for taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that:

(a) you do so to package the fuel, in accordance with the regulations, for the purpose of making a *taxable supply of the fuel for use other than in an internal combustion engine; and

(b) the fuel is kerosene, mineral turpentine, white spirit or any other fuel prescribed by the regulations.

Subdivision 41-B--Disentitlement rules for fuel tax credits
Table of Sections

41-15 No fuel tax credit if another entity was previously entitled to a credit

41-20 No fuel tax credit for fuel to be used in light vehicles on a public road

41-25 No fuel tax credit for fuel to be used in motor vehicles that do not meet environmental criteria

41-30 No fuel tax credit for fuel to be used in aircraft

41-15 No fuel tax credit if another entity was previously entitled to a credit

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

41-20 No fuel tax credit for fuel to be used in light vehicles on a public road

You are not entitled to a fuel tax credit for taxable fuel to the extent that you acquire, manufacture or import the fuel for use in a vehicle with a gross vehicle mass of 4.5 tonnes or less travelling on a public road.

Note: If you acquire a vehicle of 4.5 tonnes before 1 July 2006, you might be entitled to the credit under Part 4 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006.

41-25 No fuel tax credit for fuel to be used in motor vehicles that do not meet environmental criteria

(1) You are not entitled to a fuel tax credit for taxable 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;

(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

41-30 No fuel tax credit for fuel to be used in aircraft

You are not entitled to a fuel tax credit for taxable 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).

Division 42--Fuel tax credit for non-business taxpayers
Table of Subdivisions

Guide to Division 42

42-A Fuel tax credit for non-business taxpayers
Guide to Division 42

42-1 What this Division is about
Fuel tax credits are provided under this Division to non-business taxpayers. Currently, a credit is only provided for fuel to be used by you for generating electricity for domestic use.

Subdivision 42-A--Fuel tax credit for non-business taxpayers
Table of Sections

42-5 Fuel tax credit for fuel to be used in generating electricity for domestic use

You are entitled to a fuel tax credit for taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that you do so for use by you in generating electricity for domestic use.

Note: If you are carrying on an enterprise, you might be entitled to a credit under section 41-5.

Division 43--Working out your fuel tax credit
Table of Subdivisions

Guide to Division 43

43-A Working out your fuel tax credit
Guide to Division 43

43-1 What this Division is about
The amount of your credit for taxable fuel is the amount of fuel tax that was payable on the fuel, reduced to take account of certain grants and subsidies that were payable in respect of the fuel (as the grants or subsidies reduced the amount of fuel tax that effectively applied to the fuel).

In some cases, the credit is reduced so that some of the fuel tax can be retained to fund cleaner fuel grants and as a road user charge.

Subdivision 43-A--Working out your fuel tax credit
Table of Sections

43-5 Working out your fuel tax credit

43-10 Reducing the amount of your fuel tax credit

43-5 Working out your fuel tax credit

(1) The *amount of your fuel tax credit for taxable fuel is the amount of *effective fuel tax that is payable on the fuel.

Note: The amount of the credit might be reduced under section 43-10.

Amount of effective fuel tax

(2) The *amount of effective fuel tax that is payable on the fuel is the amount (but not below nil) worked out using the following formula:

where:

fuel tax amount means the *amount of fuel tax that was or would be payable on the fuel:

(a) if you are *registered for GST, or *required to be registered for GST--at the rate in force at the beginning of the *tax period to which the credit is attributable; and

(b) if you are not registered for GST, nor required to be registered for GST--at the rate in force on the day on which the Commissioner receives your return relating to the fuel.

Note: Division 65 sets out which tax period a credit is attributable to.

grant or subsidy amount means the *amount of any grant or subsidy that was or would be payable in respect of the fuel by the Commonwealth:

(a) if you are *registered for GST, or *required to be registered for GST--at the rate in force at the beginning of the *tax period to which the credit is attributable; and

(b) if you are not registered for GST, nor required to be registered for GST--at the rate in force on the day on which the Commissioner receives your return relating to the fuel.

Note 1: Division 65 sets out which tax period a credit is attributable to.

Note 2: Subsection (4) affects how this formula applies to some blends of petrol or diesel.

Exclusions from grant or subsidy amount

(3) In applying subsection (2), the following grants are disregarded:

(a) a grant under the Biofuels Capital Grants Program;

(b) a grant for on-road alternative fuel under the Energy Grants (Credits) Scheme Act 2003;

(d) a benefit under the Product Stewardship (Oil) Act 2000.

Amount of effective fuel tax for blends of petrol and diesel

(4) The effective fuel tax for taxable 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 (2) as if the fuel were entirely that kind of petrol or diesel (as the case requires).

43-10 Reducing the amount of your fuel tax credit
Cleaner fuel grants

(1) The *amount of your fuel tax credit for taxable fuel is reduced to the extent, determined by the Minister, that fuel tax is imposed on the fuel to fund a cleaner fuel grant.

(2) For the purposes of subsection (1), the Minister must determine, by legislative instrument, the *amount of the fuel tax imposed that will fund a cleaner fuel grant.

Road user charge

(3) To the extent that you acquire, manufacture or import taxable fuel to use, in a vehicle, for travelling on a public road, the *amount of your fuel tax credit for the fuel is reduced by the amount of the road user charge, determined by the *Transport Minister.

Note: Only certain motor vehicles whose gross vehicle mass is more than 4.5 tonnes are entitled to any credit (see sections 41-20 and 41-25).

(4) However, the *amount is not reduced under subsection (3) if the vehicle's travel on a public road is incidental to the vehicle's main use.

(5) For the purposes of subsection (3), the *Transport Minister must determine, by legislative instrument, the *amount of the road user charge.

Working out the amount of the reduction

(6) The *amount by which a fuel tax credit for taxable fuel is reduced under subsection (1) or (3) is worked out by reference to the rate of fuel tax or road user charge in force:

(a) if you are *registered for GST, or *required to be registered for GST--at the beginning of the *tax period to which the credit is attributable; and

(b) if you are not registered for GST, nor required to be registered for GST--on the day on which the Commissioner receives your return relating to the fuel.

Note: Division 65 sets out which tax period a credit is attributable to.

Division 44--Increasing and decreasing fuel tax adjustments
Table of Subdivisions

Guide to Division 44

44-A Increasing and decreasing fuel tax adjustments
Guide to Division 44

44-1 What this Division is about
Your entitlement to a fuel tax credit for taxable 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 or supply the fuel differently, or you do not use or supply the fuel at all, you have an increasing or decreasing fuel tax adjustment.

Fuel tax adjustments are included in working out your net fuel amount under Division 60. (Your net fuel amount determines how much you owe the Commissioner or the Commissioner owes you.)
Note: There is also a decreasing fuel tax adjustment under Division 45 (Greenhouse Challenge Plus Programme).

Subdivision 44-A--Increasing and decreasing fuel tax adjustments
Table of Sections

44-5 Increasing and decreasing fuel tax adjustments for change of circumstances

44-10 Increasing fuel tax adjustment for failure to use or make a taxable supply of fuel

44-5 Increasing and decreasing fuel tax adjustments for change of circumstances

(1) You have a *fuel tax adjustment if you use fuel, or make a *taxable supply of fuel, in circumstances where, if you had originally acquired, manufactured or imported the fuel to use or make a taxable supply in those circumstances, the *amount of the fuel tax credit to which you would have been entitled 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 65 sets out which tax period or fuel tax return period the fuel tax adjustment is attributable to.

Decreasing fuel tax adjustments

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

Increasing fuel tax adjustments

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

Example: You acquire taxable fuel to use in a harvester in carrying on your farming enterprise, so you are paid a fuel tax credit for the fuel. Later on, you use the fuel to transport wheat in a vehicle of more than 4.5 tonnes travelling on a public road. As your fuel tax credit would have been reduced by the amount of the road user charge, you have an increasing fuel tax adjustment of the difference between the 2 amounts.

44-10 Increasing fuel tax adjustment for failure to use or make a taxable supply of fuel

You have an increasing fuel tax adjustment if:

(a) you are or were entitled to a fuel tax credit for taxable fuel; and

(b) you have no reasonable prospect of using, or making a *taxable supply of, the fuel.

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

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

Note: Division 65 sets out which tax period or fuel tax return period the fuel tax adjustment is attributable to.

Part 3-3--Special rules
Division 45--Greenhouse Challenge Plus Programme
Table of Subdivisions

Guide to Division 45

45-A Greenhouse Challenge Plus Programme
Guide to Division 45

45-1 What this Division is about
Generally, you cannot include more than $3 million in fuel tax credits in your net fuel amounts in a financial year unless you are a member of the Greenhouse Challenge Plus Programme.

If you are denied a credit under this Division and you later become a member of the programme, you have a decreasing fuel tax adjustment of the amount of the credit that you were denied.

Subdivision 45-A--Greenhouse Challenge Plus Programme
Table of Sections

45-5 Certain entities to be members of Greenhouse Challenge Plus Programme

(1) You must not take into account, in your *net fuel amounts for *tax periods ending in a *financial year, a total of more than $3 million of fuel tax credits arising under section 41-5 unless the *Environment Secretary has determined that you are a member of one of the following programmes:

(a) the *Greenhouse Challenge Plus Programme;

(b) another programme determined, by legislative instrument, by the *Environment Minister for the purposes of this section.

Note: If an entity has GST branches, all of the entity's and the entity's branches' fuel tax credits are to be taken into account in applying the $3 million threshold.

(2) You have a decreasing fuel tax adjustment if:

(a) you were not entitled in a *financial year to take into account the whole or a part of a fuel tax credit under subsection (1); and

(b) you become a member of a programme mentioned in subsection (1) within 4 years after the end of the financial year.

The *amount of the adjustment is the amount of the credit that you were not entitled to take into account.

Note: Division 65 sets out which tax period the fuel tax adjustment is attributable to.

Definition

(3) The Greenhouse Challenge Plus Programme means the Greenhouse Challenge Plus Programme as set out in the Greenhouse Challenge Plus Programme Framework 2005, as amended from time to time.

Division 46--Instalment taxpayers
Table of Subdivisions

Guide to Division 46

46-A Instalment taxpayers
Guide to Division 46

46-1 What this Division is about
If you are a GST instalment taxpayer, you work out and claim your fuel tax credits for GST instalment quarters, instead of the annual 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 fuel tax adjustment, you must give a return for the last quarter in the year).

Subdivision 46-A--Instalment taxpayers
Table of Sections

46-5 Instalment taxpayers

(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 65-5(1) which *GST instalment quarter a fuel tax credit is attributable to, you must treat each GST instalment quarter as if, in the *GST Act, the quarter were a *tax period.

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 fuel tax credit or *fuel tax 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 65-5(4) if your return for a quarter does not include a fuel tax credit that is attributable, under this subsection, to the quarter.

Requirement to give a return for final quarter

(5) If you have an *increasing fuel tax 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).

Chapter 4--Common rules
Part 4-1--Net fuel amounts
Division 60--Net fuel amounts
Table of Subdivisions

Guide to Division 60

60-A Net fuel amounts
Guide to Division 60

60-1 What this Division is about
Your net fuel amount reflects how much you or the Commissioner must pay. A positive net fuel amount reflects how much you must pay the Commissioner. A negative net fuel amount reflects how much the Commissioner must pay you.

You work out your net fuel amount for each tax period (or fuel tax return period if you are not registered, nor required to be registered, for GST).

Subdivision 60-A--Net fuel amounts
Table of Sections

60-5 Working out your net fuel amount

(1) Your net fuel amount for a *tax period or a *fuel tax return period is worked out using the following formula:

where:

total decreasing fuel tax adjustments is the sum of all *decreasing fuel tax adjustments that are attributable to the period.

Note: Division 65 sets out which tax periods or fuel tax return periods fuel tax adjustments are attributable to.

total fuel tax is nil.

Note: Fuel tax is currently assessed under the Excise Act 1901, the Excise Tariff Act 1921, the Customs Act 1901 and the Customs Tariff Act 1995. It is intended that gaseous fuels will begin to be assessed under this Act in 2011.

total fuel tax credits is the sum of all fuel tax credits to which you are entitled that are attributable to the period.

Note 1: Division 45 (Greenhouse Challenge Plus Programme) might affect your entitlement to a credit.

Note 2: Division 65 sets out which tax periods or fuel tax return periods fuel tax credits are attributable to.

total increasing fuel tax adjustments is the sum of all *increasing fuel tax adjustments that are attributable to the period.

Note: Division 65 sets out which tax periods or fuel tax return periods fuel tax adjustments are attributable to.

Division 61--Returns, refunds and payments
Table of Subdivisions

Guide to Division 61

61-A Returns, refunds and payments
Guide to Division 61

61-1 What this Division is about
You must give the Commissioner a return for each tax period (or fuel tax return period if you are not registered, nor required to be registered, for GST) by a specified time.

If your return includes a positive net fuel amount, you must pay the Commissioner that amount. If your return includes a negative net fuel amount, the Commissioner must pay you that amount.

Subdivision 61-A--Returns, refunds and payments
Table of Sections

61-5 Entitlement to a refund

61-10 Requirement to pay a net fuel amount

61-15 When you must give the Commissioner your return

61-20 Fuel tax return periods

61-5 Entitlement to a refund

(1) If your *net fuel amount for a *tax period or *fuel tax return period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that *amount (expressed as a positive amount) to you.

Note 1: See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB of that Act allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.

Note 2: Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in paying the amount.

(2) Your entitlement to be paid an *amount under subsection (1) arises when you give the Commissioner a return.

61-10 Requirement to pay a net fuel amount

If your *net fuel amount for a *tax period or *fuel tax return period is greater than zero, you must pay that *amount to the Commissioner by the day on which you are required under section 46-5 or 61-15 to give the Commissioner your return.

61-15 When you must give the Commissioner your return

(1) If you are *registered for GST, or *required to be registered for GST, you must give the Commissioner your return for a *tax period on or before the day on which you are required to give the Commissioner your *GST return for the tax period.

Note 1: For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.

Note 2: If you lodge your GST return electronically, you must also electronically notify the Commissioner of your net fuel amount (see section 388-80 in Schedule 1 to the Taxation Administration Act 1953).

Note 3: Instalment taxpayers may give their returns on a different day (see section 46-5).

(2) If you are neither *registered for GST, nor *required to be registered for GST, you must give the Commissioner your return for a *fuel tax return period by the 21st day after the end of the fuel tax return period.

(3) You must give the Commissioner your return for a *tax period or a *fuel tax return period in the *approved form.

61-20 Fuel tax return periods

(1) If you are neither *registered for GST, nor *required to be registered for GST, your fuel tax return period is the period specified in the return.

(2) However, you must end a *fuel tax return period within 90 days, or any longer period allowed by the Commissioner, after you become aware of an *increasing fuel tax adjustment under Division 44. If you do not do so, your fuel tax return period ends at the end of the 90 days, or the longer period allowed by the Commissioner.

Note: You must give your return to the Commissioner by the 21st day after the end of the fuel tax return period (see section 61-15).

Part 4-2--Attribution rules
Division 65--Attribution rules
Table of Subdivisions

Guide to Division 65

65-A Attribution rules
Guide to Division 65

65-1 What this Division is about
Fuel tax credits and fuel tax adjustments are attributed to tax periods (or fuel tax return periods).

Generally, if you are a business taxpayer, your fuel tax credit for taxable fuel is attributed to the same period as your input tax credit for the fuel (to reduce compliance costs). If you are a non-business taxpayer, your fuel tax credit for taxable fuel is attributed to the fuel tax return period in which you acquire, manufacture or import the fuel.

Fuel tax adjustments are attributed to the tax period (or fuel tax return period) in which you become aware of the adjustment.

Subdivision 65-A--Attribution rules
Table of Sections

65-5 Attribution rules for fuel tax credits

65-10 Attribution rules for fuel tax adjustments

65-5 Attribution rules for fuel tax credits
Attribution rules for fuel you acquire or import

(1) If you are *registered for GST, or *required to be registered for GST, your fuel tax credit for taxable 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 fuel tax credit for taxable 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 fuel tax credit for taxable 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).

Later attribution rule for fuel tax credits

(4) If your return for a *tax period or *fuel tax return period states a *net fuel amount that does not take into account a fuel tax credit that is attributable to the period mentioned in subsection (1), (2) or (3), 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 fuel tax credits, see subsection 46-5(4) (GST instalment taxpayers).

65-10 Attribution rules for fuel tax adjustments

(1) A *fuel tax adjustment under Division 44 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 fuel tax adjustments, see subsection 46-5(4) of this Act (GST instalment taxpayers) and item 9 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006.

(2) A *fuel tax adjustment under Division 45 is attributable to the *tax period in which you became a member of a programme mentioned in subsection 45-5(1).

Part 4-3--Special rules about entities
Division 70--Special rules about entities
Table of Subdivisions

Guide to Division 70

70-A Special rules about entities and how they are organised

70-B Government entities
Guide to Division 70

70-1 What this Division is about
This Act applies to GST groups, joint ventures, religious practitioners, incapacitated entities, branches, resident agents and non-profit sub-entities in a similar way to the way in which the GST Act applies to those entities.

Government entities that are registered for GST are treated as if they are carrying on an enterprise.

Subdivision 70-A--Special rules about entities and how they are organised
Table of Sections

70-5 Application of fuel tax law to GST groups and joint ventures

70-10 Entry and exit history rules

70-15 Consolidating joint venture returns

70-20 Application of fuel tax law to religious practitioners

70-25 Application of fuel tax law to incapacitated entities

70-30 Application of fuel tax law to GST branches, resident agents and non-profit sub-entities

70-5 Application of fuel tax law to GST groups and joint ventures

(1) The entities in column 1 of the table are treated as a single entity for the purposes of the *fuel tax law.

(2) The entity in column 2 of the table has all the rights, powers and obligations of the single entity under the *fuel tax law (instead of each entity in column 1 having those rights, powers and obligations).

Application of fuel tax law to GST groups and joint ventures

Item
Column 1
These entities are treated as a single entity for the purposes of the fuel tax law
Column 2
This entity has all the rights, powers and obligations of the single entity under the fuel tax law

1
The members of a *GST group
The representative member of the group

2
The *participants in a *GST joint venture (to the extent that any relevant fuel is acquired, manufactured or imported in the course of activities for which the joint venture was entered into)
The *joint venture operator of the joint venture

Note: Sections 444-80 and 444-90 in Schedule 1 to the Taxation Administration Act 1953 affect the operation of this section.

70-10 Entry and exit history rules
Entry history rule

(1) For the purposes of the *fuel tax law, from the time when a particular entity starts to be treated as part of a single entity under section 70-5, everything that happened (including because of any previous application of this section) before that time, in relation to any fuel in the hands of the particular entity at that time, is taken to have happened as if the fuel had been in the hands of the single entity.

Example: The single entity is taken to have acquired the fuel for the purposes for which the particular entity acquired the fuel.

Exit history rule

(2) For the purposes of the *fuel tax law, from the time when a particular entity ceases to be treated as part of a single entity under section 70-5, everything that happened (including because of any previous application of this section) before that time, in relation to any fuel in the hands of the particular entity immediately after that time, is taken to have happened as if the fuel had been in the hands of the particular entity.

Example: The particular entity is taken to have acquired the fuel for the purposes for which the single entity acquired the fuel.

70-15 Consolidating joint venture returns

If, under section 51-52 of the *GST Act, an election is in force to consolidate a *joint venture operator's *GST returns relating to its *GST joint ventures, the operator must consolidate its returns under this Act relating to the joint ventures.

70-20 Application of fuel tax law to religious practitioners

The *fuel tax law applies to *religious practitioners and religious institutions in the same way as the *GST Act applies to them under Division 50 of that Act.

70-25 Application of fuel tax law to incapacitated entities

The *fuel tax law applies to an *incapacitated entity and its representative (within the meaning of the *GST Act) in the same way as that Act applies to them under Division 147 of that Act.

70-30 Application of fuel tax law to GST branches, resident agents and non-profit sub-entities

While an entity meets the condition in column 1 of the table, the *fuel tax law applies to:

(a) the entity; and

(b) its fuel tax credits, *net fuel amount and *fuel tax adjustments;
in a corresponding way to the way in which the *GST law applies, because of the Division of the *GST Act mentioned in column 2, to:

(d) its *input tax credits, *net amount and *adjustments.

Application of fuel tax law to GST branches, resident agents and non-profit sub-entities

Item
Column 1
While this condition is met ...

Column 2
the fuel tax law applies in a corresponding way to the way in which the GST law applies to the entity because of this Division of the GST Act ...

1
The entity has a *GST branch
Division 54

2
The entity has a *resident agent
Division 57

3
The entity has a non-profit sub-entity
Division 63

Subdivision 70-B--Government entities
Table of Sections

70-35 Application of fuel tax law to government entities

A *government entity that is *registered for GST is treated, while its registration has effect, as if it were an entity *carrying on an *enterprise.

Part 4-4--Anti-avoidance
Division 75--Anti-avoidance
Table of Subdivisions

Guide to Division 75

75-A Application of this Division

75-B Commissioner may negate effects of schemes for fuel tax benefits
Guide to Division 75

75-1 What this Division is about
The object of this Division is to deter schemes that give entities benefits by reducing fuel tax, increasing refunds or altering the timing of payment of net fuel amounts.

If the dominant purpose or principal effect of a scheme is to give an entity such a benefit, the Commissioner may negate the benefit any entity gets from the scheme by making a declaration stating the entity's net fuel amount for a particular tax period, despite the scheme.

Subdivision 75-A--Application of this Division
Table of Sections

75-5 When does this Division operate?

75-10 When does an entity get a fuel tax benefit from a scheme?

75-15 Matters to be considered in determining purpose or effect

75-5 When does this Division operate?
General rule

(1) This Division operates if:

(a) an entity (the avoider) gets a *fuel tax benefit from a *scheme; and

(b) the fuel tax benefit is not attributable to the making, by any entity, of a choice, election, application or agreement that is expressly provided for by the *fuel tax law or the *GST law; and

(i) an entity that (whether alone or with others) entered into or carried out the scheme, or part of the scheme, did so with the sole or dominant purpose of that entity or another entity getting a fuel tax benefit from the scheme; or

(ii) the principal effect of the scheme, or of part of the scheme, is that the avoider gets the fuel tax benefit from the scheme directly or indirectly; and

(d) the avoider gets the fuel tax benefit from the scheme on or after 1 July 2006.

Territorial application

(2) It does not matter whether the *scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.

75-10 When does an entity get a fuel tax benefit from a scheme?

(1) An entity gets a fuel tax benefit from a *scheme if:

(a) an *amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or

(b) an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, larger than it would be apart from the scheme or a part of the scheme; or

(c) all or part of an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable later than it would have been apart from the scheme or a part of the scheme; or

(d) all or part of an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, payable earlier than it would have been apart from the scheme or a part of the scheme.

Fuel tax benefit can arise even if no economic alternative

(2) An entity can get a *fuel tax benefit from a *scheme even if the entity or entities that entered into or carried out the scheme, or a part of the scheme, could not have engaged economically in any activities:

(a) of the kind to which this Act applies; and

(b) that would produce an effect equivalent (except in terms of this Act) to the effect of the scheme or part of the scheme;
other than the activities involved in entering into or carrying out the scheme or part of the scheme.

75-15 Matters to be considered in determining purpose or effect

(1) The following matters are to be taken into account under section 75-5 in considering an entity's purpose in entering into or carrying out the *scheme from which the avoider got a *fuel tax benefit, and the effect of the scheme:

(a) the manner in which the scheme was entered into or carried out;

(b) the form and substance of the scheme, including:

(i) the legal rights and obligations involved in the scheme; and

(ii) the economic and commercial substance of the scheme;

(c) the purpose or object (whether or not expressly stated) of any of the following Acts, and any relevant provision of those Acts, so far as they are relevant to this Act:

(i) this Act;

(ii) the Excise Act 1901 and the Excise Tariff Act 1921;

(iii) the Customs Act 1901 and the Customs Tariff Act 1995;

(iv) the Energy Grants (Credits) Scheme Act 2003;

(v) the *GST Act;

(d) the timing of the scheme;

(e) the period over which the scheme was entered into and carried out;

(f) the effect that this Act would have in relation to the scheme apart from this Division;

(g) any change in the avoider's financial position that has resulted, or may reasonably be expected to result, from the scheme;

(h) any change that has resulted, or may reasonably be expected to result, from the scheme in the financial position of an entity (a connected entity) that has or had a connection or dealing with the avoider, whether the connection or dealing is or was of a family, business or other nature;

(i) any other consequence for the avoider or a connected entity of the scheme having been entered into or carried out;

(j) the nature of the connection between the avoider and a connected entity;

(k) the circumstances surrounding the scheme;

(l) any other relevant circumstances.

(2) Subsection (1) applies in relation to consideration of an entity's purpose in entering into or carrying out a part of a *scheme from which the avoider gets a *fuel tax benefit, and the effect of part of the scheme, as if the part were itself the scheme from which the avoider gets the fuel tax benefit.

Subdivision 75-B--Commissioner may negate effects of schemes for fuel tax benefits
Table of Sections

75-40 Commissioner may negate avoider's fuel tax benefits

75-45 Commissioner may reduce an entity's net fuel amount to compensate

75-50 Refund payable in accordance with declaration

75-55 Commissioner may disregard scheme in making declarations

75-60 One declaration may cover several tax periods or fuel tax return periods

75-65 Commissioner must give copy of declaration to entity affected

75-40 Commissioner may negate avoider's fuel tax benefits

(1) For the purpose of negating a *fuel tax benefit the avoider gets from the *scheme, the Commissioner may make a declaration stating the *amount that is (and has been at all times) the avoider's *net fuel amount for a specified *tax period or *fuel tax return period that has ended.

Note: A declaration of the Commissioner under this section is a reviewable fuel tax decision (see Subdivision 112-E in Schedule 1 to the Taxation Administration Act 1953).

(2) A declaration under this section is not a legislative instrument.

75-45 Commissioner may reduce an entity's net fuel amount to compensate

(1) This section operates if:

(a) the Commissioner has made a declaration under section 75-40 to negate the *fuel tax benefit an entity gets from a *scheme; and

(b) the Commissioner considers that another entity (the loser) gets a *fuel tax disadvantage from the scheme; and

(c) the Commissioner considers that it is fair and reasonable that the loser's fuel tax disadvantage be negated or reduced.

(2) An entity gets a fuel tax disadvantage from a *scheme if:

(a) an *amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, larger than it would have been apart from the scheme or a part of the scheme; or

(b) an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would have been apart from the scheme or a part of the scheme; or

(c) all or part of an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable earlier than it would have been apart from the scheme or a part of the scheme; or

(d) all or part of an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, payable later than it would have been apart from the scheme or a part of the scheme.

(3) For the purposes of negating or reducing the loser's *fuel tax disadvantage from the *scheme, the Commissioner may make a declaration (under this section) stating the *amount that is (and has been at all times) the loser's *net fuel amount for a specified *tax period or *fuel tax return period that has ended.

Note: A declaration of the Commissioner under this section is a reviewable fuel tax decision (see Subdivision 112-E in Schedule 1 to the Taxation Administration Act 1953).

(4) An *amount stated in a declaration as the loser's *net fuel amount must not be less than the net fuel amount would have been apart from the *scheme, or part of the scheme, and the declaration.

(5) An entity may give the Commissioner a written request to make a declaration under this section relating to the entity. The Commissioner must decide whether or not to grant the request, and give the entity notice of the Commissioner's decision.

Note: A decision of the Commissioner under subsection (5) is a reviewable fuel tax decision (see Subdivision 112-E in Schedule 1 to the Taxation Administration Act 1953).

(6) A declaration under this section is not a legislative instrument.

75-50 Refund payable in accordance with declaration

A statement in a declaration under this Subdivision has effect according to its terms, for the purposes of Division 61 (about refunds and payments), despite the provisions of this Act outside that Division and this Division.

75-55 Commissioner may disregard scheme in making declarations

For the purposes of making a declaration under this Subdivision, the Commissioner may:

(a) treat a particular event that actually happened as not having happened; and

(b) treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as:

(i) having happened at a particular time; and

(ii) having involved particular action by a particular entity; and

(i) having happened at a time different from the time it actually happened; or

(ii) having involved particular action by a particular entity (whether or not the event actually involved any action by that entity).

75-60 One declaration may cover several tax periods or fuel tax return periods

Statements relating to different *tax periods or *fuel tax return periods may be included in a single declaration under this Subdivision.

75-65 Commissioner must give copy of declaration to entity affected

(1) The Commissioner must give a copy of a declaration under this Subdivision to the entity whose *net fuel amount is stated in the declaration.

(2) A failure to comply with subsection (1) does not affect the validity of the declaration.

Part 4-5--Miscellaneous
Division 95--Miscellaneous
Table of Subdivisions

Guide to Division 95

95-A Miscellaneous
Guide to Division 95

95-1 What this Division is about
This Division provides for determinations and regulations to be made for the purposes of the fuel tax law.

Subdivision 95-A--Miscellaneous
Table of Sections

95-5 Determination of blends that no longer constitute fuels

95-10 Application of this law to the Commonwealth

95-100 Regulations

95-5 Determination of blends that no longer constitute fuels

(1) For the purposes of the *fuel tax law, the Commissioner may, by legislative instrument, determine that a blend of a fuel and another product does not constitute a fuel.

(2) An entity that blends that fuel and that other product to produce that blend is taken to have used that fuel.

(3) In making a determination under subsection (1), the Commissioner must consider the following matters:

(a) the physical and chemical properties of the blend;

(b) whether the blend can be used in an internal combustion engine;

(d) whether there is a risk that the blend might be used as fuel, and the financial impact on the Commonwealth if the blend were used as fuel;

(e) any other relevant matter.

The Commissioner must give the greatest weight to the matter mentioned in paragraph (d).

95-10 Application of this law to the Commonwealth

(1) It is the Parliament's intention that the Commonwealth and *untaxable Commonwealth entities should:

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

(b) have notional *fuel tax 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).

(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) The directions given under subsection (2) may also take account of the provisions of the Fuel Tax (Consequential and Transitional Provisions) Act 2006.

(4) Directions under subsection (2) have effect, and must be complied with, despite any other Commonwealth law.

(5) A direction given under subsection (2) is not a legislative instrument.

95-100 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 105--Rules for interpreting this Act
Table of Subdivisions

105-A Rules for interpreting this Act
Subdivision 105-A--Rules for interpreting this Act
Table of Sections

105-1 What forms part of this Act

105-5 What does not form part of this Act

105-10 Guides, and their role in interpreting this Act

105-1 What forms part of this Act

(1) These all 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.

105-5 What does not form part of this Act

These do not form part of this Act:

(a) footnotes and endnotes;

(b) Tables of Subdivisions;

105-10 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; 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.

Part 5-3--Dictionary
Division 110--Dictionary
Table of Subdivisions

110-A Dictionary
Subdivision 110-A--Dictionary
Table of Sections

110-5 Dictionary

In this Act:

adjustment has the meaning given by section 195-1 of the *GST Act.

amount includes a nil amount.

approved form has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953.

Australia has the meaning given by section 195-1 of the *GST Act.

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.

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 adjustment has the meaning given by section 195-1 of the *GST Act.

decreasing fuel tax adjustment has the meaning given by:

(a) section 44-5 and subsection 45-5(2) of this Act; and

(b) item 9 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006.

effective fuel tax has the meaning given by section 43-5.

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.

Environment Minister means the Minister who administers the Environment Protection and Biodiversity Conservation Act 1999.

Environment Secretary has the meaning given by section 995-1 of the Income Tax Assessment Act 1997.

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.

fuel tax means duty that is payable on fuel under:

(a) the Excise Act 1901 and the Excise Tariff Act 1921; or

(b) the Customs Act 1901 and the Customs Tariff Act 1995;
other than any duty that is expressed as a percentage of the value of fuel for the purposes of section 9 of the Customs Tariff Act 1995.

fuel tax adjustment means an *increasing fuel tax adjustment or a *decreasing fuel tax adjustment.

fuel tax benefit has the meaning given by section 75-10.

fuel tax credit means an entitlement arising under section 41-5, 41-10 or 42-5.

fuel tax disadvantage has the meaning given by section 75-45.

fuel tax law means:

(a) this Act; and

(b) the Fuel Tax (Consequential and Transitional Provisions) Act 2006; and

(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and

(e) regulations under any Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).

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

government entity has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.

Greenhouse Challenge Plus Programme has the meaning given by section 45-5.

GST Act means the A New Tax System (Goods and Services Tax) Act 1999.

GST branch has the meaning given by section 54-5 of the *GST Act.

GST group has the meaning given by section 48-5 of the *GST Act.

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.

GST joint venture has the meaning given by section 51-5 of the *GST Act.

GST law has the meaning given by section 195-1 of the *GST Act.

GST return has the meaning given by section 195-1 of the *GST Act.

Guide has the meaning given by section 105-10.

incapacitated entity has the meaning given by section 195-1 of the *GST Act.

increasing adjustment has the meaning given by section 195-1 of the *GST Act.

increasing fuel tax adjustment has the meaning given by sections 44-5 and 44-10.

input tax credit has the meaning given by section 195-1 of the *GST Act.

input taxed has the meaning given by section 195-1 of the *GST Act.

joint venture operator has the meaning given by section 195-1 of the *GST Act.

motor vehicle has the meaning given by section 995-1 of the Income Tax Assessment Act 1997.

net amount has the meaning given by section 195-1 of the *GST Act.

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

participant has the meaning given by section 195-1 of the *GST Act.

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.

religious practitioner has the meaning given 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.

resident agent has the meaning given by section 195-1 of the *GST Act.

scheme has the meaning given by subsection 165-10(2) of the *GST Act.

taxable fuel means fuel in respect of which duty is payable under:

(a) the Excise Act 1901 and the Excise Tariff Act 1921; or

(b) the Customs Act 1901 and the Customs Tariff Act 1995;
but does not include fuel covered by:

(d) any imported goods that would be classified to item 15 of the Schedule to the Excise Tariff Act 1921, if the goods had been manufactured in Australia.

Note: Item 15 of the Schedule to the Excise Tariff Act 1921 deals with certain petroleum based oils and greases. Item 17 of that Schedule deals with certain stabilised crude petroleum oils.

taxable supply has the meaning given by section 195-1 of the *GST Act.

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 to Commonwealth entity 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.

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Commonwealth of Australia Bills

FUEL TAX BILL 2006