Diesel and Alternative Fuels Grants Scheme Amendment Regulations 2001 (No. 1) 2001 No. 17
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 17
Issued by authority of the Treasurer
Diesel and Alternative Fuels Grants Scheme Act 1999
Diesel and Alternative Fuels Grants Scheme Amendment Regulations 2001 (No. 1)
Section 63 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (the Act) provides that the Governor-General may make regulations prescribing matters required to give effect to the Act.
The Act came into effect on 1 July 2000. The legislation introduced a grant for certain on road use of diesel and alternative fuels to reduce transport costs to businesses in rural and regional Australia. The grant is available for all on road use in vehicles weighing 20 tonnes or more and, with certain restrictions, for vehicles weighing between 4.5 tonnes and 20 tonnes used for transporting goods or passengers.
The purpose of the regulations was to introduce provisions which allow automatic indexation of the rate of grant applicable to diesel and alternative and set out the mechanism for calculating the indexed rates of grant. This is consistent with the Government's intention to preserve the real value of the grant under the scheme.
Regulation 7 of the Diesel and Alternative Fuels Grants Scheme Regulations 2000 states that the grant rates per litre applicable to the following types of diesel or alternative fuel are:
(a) for diesel fuel - 17.798 cents;
(b) for compressed natural gas - 12.132 cents;
(c) for liquefied petroleum gas - 11.466 cents;
(d) for ethanol - 20.009 cents.
The regulations provide that the rates of grant applicable to the fuels above are automatically indexed in line with changes in the Consumer Price Index. The indexation period is the six month period that commenced on 1 February 2001 with subsequent indexations occurring every six months.
The regulations are taken to have commenced on 1 February 2001. The retrospective commencement is not in breach of sub-section 48(2) of the Acts Interpretation Act 1901 as it will not affect the rights of persons so as to disadvantage them or impose liabilities for anything done or omitted to be done before the date of notification.
Overview
The Diesel and Alternative Fuels Grants Scheme Amendment Regulations 2001 (No. 1) were enacted to provide automatic indexation of the grant rates for diesel and alternative fuels under the Diesel and Alternative Fuels Grants Scheme Act 1999. This amendment was made in response to the need to maintain the real value of the grant, thereby ensuring that the financial assistance provided to businesses in rural and regional Australia remains effective in mitigating transport costs. The regulations were issued by authority of the Treasurer and were designed to align the grant rates with changes in the Consumer Price Index, thereby preserving the purchasing power of the grants. The regulations came into effect on 1 February 2001, with the intent to avoid any retrospective disadvantages to individuals or entities under the Act.
Scope and Application
The Diesel and Alternative Fuels Grants Scheme Amendment Regulations 2001 (No. 1) applies to all entities and persons involved in the on-road use of diesel and alternative fuels, specifically targeting businesses operating vehicles in rural and regional Australia that weigh 20 tonnes or more. It also extends to certain vehicles weighing between 4.5 tonnes and 20 tonnes used for transporting goods or passengers, subject to certain restrictions. These regulations are an extension of the Diesel and Alternative Fuels Grants Scheme Act 1999, which came into effect on 1 July 2000, with the intent to provide financial assistance to reduce transport costs for businesses in rural and regional areas. The regulations automatically adjust the grant rates for diesel and alternative fuels in line with the Consumer Price Index, ensuring the real value of the grant is maintained over time. The indexation mechanism is designed to update the grant rates every six months, starting from the period commencing 1 February 2001. The retrospective commencement of the regulations does not contravene the provisions of the Acts Interpretation Act 1901, as it does not disadvantage any persons or impose liabilities for actions prior to the notification date.
Key Provisions
The main operative sections of the Diesel and Alternative Fuels Grants Scheme Amendment Regulations 2001 (No. 1) (the Regulations) pertain to the automatic indexation of the grant rates applicable to diesel and alternative fuels, as outlined in Section 63 of the Diesel and Alternative Fuels Grants Scheme Act 1999. Specifically, Regulation 7 details the grant rates per litre for various fuels, including diesel, compressed natural gas, liquefied petroleum gas, and ethanol. These rates are subject to automatic indexation every six months in line with changes in the Consumer Price Index, starting from the six-month period that began on 1 February 2001.
The Regulations impose specific obligations on the parties and entities governed by the Act. Firstly, they require the automatic adjustment of grant rates to maintain the real value of the grant. This means that the grant rates for diesel and alternative fuels will be updated biannually to reflect inflation, ensuring that the financial support provided by the scheme remains effective over time. Furthermore, the regulations necessitate that the indexation mechanism be applied consistently and transparently, so that all eligible recipients can accurately calculate their entitlements.
In terms of compliance, any breach of the Regulations could potentially lead to civil or criminal consequences, depending on the nature and severity of the non-compliance. Although the specific penalties are not detailed within the explanatory statement, it is reasonable to infer that non-compliance with such regulations could result in penalties as stipulated under the parent Act, the Diesel and Alternative Fuels Grants Scheme Act 1999. These penalties could include fines or other sanctions that are designed to ensure adherence to the legislative framework. The maximum penalties for breaches of the Act are not specified in this explanatory statement but would typically be outlined in the parent Act or related legislative instruments.
The retrospective commencement of the Regulations on 1 February 2001 is justified under sub-section 48(2) of the Acts Interpretation Act 1901, which allows for such a commencement if it does not adversely affect the rights of any person or impose liabilities for actions taken prior to the notification date. This ensures that the new indexation provisions apply from the intended date without retroactively disadvantaging any party.