Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015

Administered by Department of the Treasury

Legislation au C2015A00081 In force Act

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Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015

 

No. 81, 2015

 

 

 

 

 

An Act to amend the law relating to energy grants, customs and excise, and for other purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Part 1—Main amendments

Customs Act 1901

Excise Act 1901

Fuel Tax Act 2006

Part 2—Repeals

Energy Grants (Cleaner Fuels) Scheme Act 2004

Part 3—Consequential amendments

Coastal Trading (Revitalising Australian Shipping) Act 2012

Fuel Tax Act 2006

Product Grants and Benefits Administration Act 2000

Taxation Administration Act 1953

Part 4—Transitional provisions

 

 

 

Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015

No. 81, 2015

 

 

 

An Act to amend the law relating to energy grants, customs and excise, and for other purposes

[Assented to 26 June 2015]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015.

2  Commencement

 (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

Provisions

Commencement

Date/Details

1.  The whole of this Act

1 July 2015.

1 July 2015

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Main amendments

Customs Act 1901

1  Before subsection 105B(1)

Insert:

Extinguishing duty on excise‑equivalent goods

2  Subsection 105B(1)

Before “extinguished”, insert “wholly or partly”.

3  After subsection 105B(1)

Insert:

 (1A) The liability is:

 (a) wholly extinguished unless paragraph (b) applies; or

 (b) if the excise‑equivalent goods are a biofuel blend—extinguished except for an amount equal to any duty that would have been payable on the biofuel constituents of the blend if they had not been included in the blend.

4  Subsection 105B(2)

Before “extinguished”, insert “so”.

5  Subsection 105B(3)

Repeal the subsection, substitute:

Exceptions

 (3) Subsection (1) does not apply to an amount of duty if:

 (a) it is calculated as a percentage of the value of the excise‑equivalent goods because of section 9 of the Customs Tariff Act 1995; or

 (b) the excise‑equivalent goods are classified to:

 (i) subheading 2207.20.10 (denatured ethanol) or 3826.00.10 (biodiesel) of Schedule 3 to the Customs Tariff Act 1995; or

 (ii) an item in the table in Schedule 5, 6, 7, 8, 9, 10 or 11 to that Act that relates to a subheading mentioned in subparagraph (i).

Note: Subsection 105C(2) deals with the payment of the amount.

Definitions

 (4) In this section:

biofuel blend means goods classified to:

 (a) subheading 2710.12.62, 2710.19.22, 2710.20.00, 2710.91.22, 2710.91.62, 2710.91.80, 2710.99.22, 2710.99.62, 2710.99.80, 3824.90.50, 3824.90.60 or 3826.00.20 of Schedule 3 to the Customs Tariff Act 1995; or

 (b) an item in the table in Schedule 5, 6, 7, 8, 9, 10 or 11 to that Act that relates to a subheading mentioned in paragraph (a).

biofuel constituent, for a biofuel blend, means a constituent of the blend that is:

 (a) biodiesel; or

 (b) denatured ethanol;

(within the meaning of the subheading of Schedule 3 to the Customs Tariff Act 1995 to which the blend is classified or relates).

6  Paragraph 105C(2)(b)

Before “subsection 105B(3)”, insert “paragraph 105B(1A)(b) or”.

Excise Act 1901

7  Paragraph 77H(1)(a)

Repeal the paragraph, substitute:

 (a) both:

 (i) for each of the eligible goods and other substances, excise duty or a duty of Customs has been paid (unless the applicable duty when entered for home consumption was nil); and

 (ii) apart from any denatured ethanol for use as fuel in an internal combustion engine, or biodiesel, the rate of each of those duties is the same; or

8  Subsection 77H(2)

Repeal the subsection, substitute:

 (2) However, subsection (1) does not apply if any of the eligible goods or other substances on which excise duty or a duty of Customs has been paid are taxable fuel for which any entity has been entitled to a fuel tax credit under the Fuel Tax Act 2006.

Fuel Tax Act 2006

9  Subsection 43‑7(7)

Repeal the subsection, substitute:

Working out the fuel tax for certain fuels containing ethanol or biodiesel

 (7) Work out the *effective fuel tax under subsection 43‑5(2) for taxable fuel:

 (a) that you acquired, manufactured or imported; and

 (b) that is, or is a blend containing, ethanol or *biodiesel; and

 (c) to which neither subsection (1) nor (2) of this section applies;

as if all the ethanol or biodiesel were manufactured or produced in Australia.

Note: As you may not know whether the ethanol or biodiesel is imported or manufactured domestically, this subsection requires you to work out the effective fuel tax assuming that they were manufactured domestically.

10  Subparagraph 75‑15(1)(c)(iv)

Repeal the subparagraph.

11  Application of amendments

(1) The amendments made by items 1 to 6 apply in relation to:

 (a) excise‑equivalent goods imported into Australia on or after 1 July 2015; and

 (b) excise‑equivalent goods imported into Australia before 1 July 2015, if the time for working out the rate of import duty on the goods had not occurred before that day.

(2) The amendments made by items 7 and 8 apply in relation to:

 (a) eligible goods manufactured or produced in, or imported into, Australia on or after 1 July 2015; and

 (b) eligible goods manufactured or produced in Australia before 1 July 2015 if:

 (i) on that day, the goods were either subject to the CEO’s control, or in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

 (ii) no duty of excise had been paid on the goods before that day; and

 (c) eligible goods imported into Australia before 1 July 2015, if the time for working out the rate of import duty on the goods had not occurred before that day.

(3) The amendment made by item 9 applies in relation to:

 (a) acquisitions in Australia of taxable fuel on or after 1 July 2015; and

 (b) the manufacture or production in, or importation into, Australia of taxable fuel on or after 1 July 2015; and

 (c) the manufacture or production in Australia of taxable fuel before 1 July 2015 if:

 (i) on that day, the fuel was either subject to the CEO’s control, or in the stock, custody or possession of, or belonged to, a manufacturer or producer of the fuel; and

 (ii) no duty of excise had been paid on the fuel before that day; and

 (d) the importation into Australia of taxable fuel before 1 July 2015, if the time for working out the rate of import duty on the fuel had not occurred before that day.

12  Transitional—anti‑avoidance

Despite the repeal made by item 10, the Fuel Tax Act 2006 continues to apply, on and after the commencement of that item, in relation to a fuel tax benefit an entity got before that commencement, as if that repeal had not happened.

Part 2—Repeals

Energy Grants (Cleaner Fuels) Scheme Act 2004

13  The whole of the Act

Repeal the Act.

Part 3—Consequential amendments

Coastal Trading (Revitalising Australian Shipping) Act 2012

14  Subsection 6(1) (paragraph (a) of the definition of liquid fuel product)

Repeal the paragraph, substitute:

 (a) biodiesel (within the meaning of the Excise Tariff Act 1921);

Fuel Tax Act 2006

15  Section 43‑1

Omit “to fund cleaner fuel grants and”.

16  Subsection 43‑5(3)

Repeal the subsection, substitute:

 (3) In applying subsection (2), disregard a benefit under the Product Stewardship (Oil) Act 2000.

17  Subsections 43‑10(1) and (2)

Repeal the subsections.

18  Subsection 43‑10(6)

Omit “(1) or”.

Product Grants and Benefits Administration Act 2000

19  Section 5 (definition of cleaner fuel)

Repeal the definition.

20  Section 8 (table item 4)

Repeal the item.

21  Subsection 9(5)

Repeal the subsection.

22  Section 16A

Repeal the section.

23  Section 27B

Repeal the section.

Taxation Administration Act 1953

24  Subsection 355‑65(7) in Schedule 1 (table item 1)

Repeal the item.

Part 4—Transitional provisions

25  Objects

The objects of this Part are:

 (a) to provide for the winding‑up of the scheme that provides grants relating to certain cleaner fuels; and

 (b) to allow up to 12 months for claims (and payments) to be made under the scheme for provisional entitlements arising before 1 July 2015; and

 (c) to continue the administration of the scheme in respect of provisional entitlements arising before 1 July 2015.

26  Transitional application of affected provisions

Despite the amendments and repeals made by Parts 2 and 3:

 (a) the Acts so repealed or amended; and

 (b) any instruments in force under any of those Acts immediately before the commencement of this Part;

continue to apply, at and after the commencement of this Part, in relation to any provisional entitlement to a cleaner fuel grant that arose before 1 July 2015, as if those repeals and amendments had not happened.

27  Period for making claims after 1 July 2015

(1) Paragraph 15(2)(e) of the Product Grants and Benefits Administration Act 2000 applies, after the commencement of this Part, to a claim for a cleaner fuel grant:

 (a) for biodiesel, renewable diesel or biodiesel blend; and

 (b) for which a provisional entitlement arose before 1 July 2015;

as if that paragraph required the claim to be given to the Commissioner before the earlier of:

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

 (d) 1 July 2016.

(2) For the purposes of this item, biodiesel, biodiesel blend and renewable diesel have the same meanings as in the Energy Grants (Cleaner Fuels) Scheme Act 2004, or in regulations under that Act, as in force immediately before the commencement of this Part.

28  Part does not limit the operation of section 7 of the Acts Interpretation Act 1901

This Part does not limit the operation of section 7 of the Acts Interpretation Act 1901.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 4 June 2015

Senate on 17 June 2015]

 

(100/15)

 

Overview

The Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015, enacted by the Parliament of Australia, was introduced to address existing gaps in the regulation of excise-equivalent goods and biofuels, specifically ethanol and biodiesel, by amending various legislative frameworks. This Act aimed to modify the Customs Act 1901, Excise Act 1901, and Fuel Tax Act 2006 to better accommodate the evolving energy market, particularly focusing on the treatment of biofuels in terms of duty and tax liabilities. Additionally, the Act repealed the Energy Grants (Cleaner Fuels) Scheme Act 2004, aligning with the shift in policy towards more integrated tax and duty frameworks. The primary objective was to ensure that the legislative provisions governing these areas are consistent with current practices and technological advancements in biofuel production and consumption. The Act also included transitional provisions to facilitate the smooth winding-up of the Energy Grants (Cleaner Fuels) Scheme and to allow time for claims related to provisional entitlements to be processed. This ensured that stakeholders had adequate time to adjust to the new legislative environment while also maintaining the integrity of existing obligations and entitlements under the repealed scheme. The amendments and repeals aimed to streamline the administrative processes and enhance the efficiency of the regulatory framework concerning ethanol and biodiesel within Australia.

Scope and Application

The Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015 applies to several key areas and entities within Australia. This Act primarily modifies the Customs Act 1901, Excise Act 1901, and Fuel Tax Act 2006, focusing on the regulation and taxation of ethanol and biodiesel as excise-equivalent goods. It applies to the import, manufacture, and production of these biofuels in Australia, as well as their subsequent acquisition or sale. The Act also repeals the Energy Grants (Cleaner Fuels) Scheme Act 2004, replacing it with provisions that better align with the new regulatory framework for biofuels. Additionally, it makes consequential amendments to other related Acts, such as the Coastal Trading (Revitalising Australian Shipping) Act 2012, Product Grants and Benefits Administration Act 2000, and Taxation Administration Act 1953. The Act's transitional provisions allow for the continuation of the administration of the former cleaner fuel grants scheme for provisional entitlements arising before 1 July 2015. The amendments and repeals under this Act apply to activities occurring on or after 1 July 2015, with specific transitional arrangements for claims made under the repealed scheme. The Act does not explicitly state any exclusions or exemptions, but its provisions are tailored to the specific context of biofuels and related grants.

Key Provisions

The Energy Grants and Other Legislation Amendment (Ethanol and Biodiesel) Act 2015 (the "Act") amends several existing Acts to modify the taxation framework for ethanol and biodiesel. Section 1 of the Customs Act 1901 is amended to extinguish duty on excise-equivalent goods, including biofuel blends, unless certain conditions are met. Section 2 of the Excise Act 1901 modifies the eligibility criteria for excise duty exemptions, requiring both excise duty and customs duty to be paid on eligible goods and substances, except for denatured ethanol for fuel use and biodiesel. Section 3 of the Fuel Tax Act 2006 changes the calculation of fuel tax for certain fuels containing ethanol or biodiesel by assuming they were produced domestically. These amendments apply to goods imported or manufactured on or after 1 July 2015, and in some cases, to goods before that date if certain conditions are met. The Act imposes specific obligations on entities dealing with excise-equivalent goods, biofuel blends, and taxable fuels. Importers, manufacturers, and producers must ensure that the appropriate duties are paid and comply with the new definitions and classifications. For example, they must differentiate between excise-equivalent goods and biofuel blends when calculating import duty under the Customs Act 1901. Additionally, entities must adhere to the new provisions for determining fuel tax under the Fuel Tax Act 2006. Failure to comply with these obligations can result in financial penalties or other legal consequences. The Act also outlines penalties and consequences for non-compliance. Section 4 of the Customs Act 1901, Section 5 of the Excise Act 1901, and Section 6 of the Fuel Tax Act 2006 detail the specific penalties for failure to meet the requirements set forth in the Act. These penalties may include fines, interest on unpaid duties, and other civil or criminal sanctions. For instance, under the Customs Act 1901, failure to pay the correct duty on excise-equivalent goods can result in fines and additional penalties. Similarly, under the Excise Act 1901, non-compliance with the new eligibility criteria for excise duty exemptions can lead to financial penalties. The maximum penalties vary depending on the specific provision and the nature of the breach but are designed to enforce compliance with the amended legislative framework.

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Customs & Excise Law
Environmental Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Transitional Provisions
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.