Fuel Quality Standards (Petrol) Amendment Determination 2021

Administered by Department of Industry, Science and Resources

Legislation au F2021L00107 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Energy and Emissions Reduction

Fuel Quality Standards Act 2000

Fuel Quality Standards (Petrol) Amendment Determination 2021

Background

The Fuel Quality Standards Act 2000 (the Act) provides the legislative framework for regulating the quality of fuel supplied in Australia. The objectives of the Act are to reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems; facilitate the adoption of better engine and emission control technology; allow the more effective operation of engines and ensure that, where appropriate, information about fuel is provided when the fuel is supplied.

 

The Fuel Quality Standards (Petrol) Determination 2019 (the 2019 Determination) was made under section 21 of the Act. Section 21 of the Act provides that the Minister may determine, by legislative instrument, that specified matters constitute a fuel standard in respect of a specified kind of fuel.

The 2019 Determination was made on 18 March 2019 to:

  • revoke and replace the sunsetting Fuel Standard (Petrol) Determination 2001;
  • set out the parameters and testing methods for petrol used in Australia; and
  • provide certainty for the quality of petrol supplied in Australia.

Purpose and operation

The purpose of the Fuel Quality Standards (Petrol) Amendment Determination 2021 (the 2021 Determination) is to amend the 2019 Determination to (i) correct spelling errors in the 2019 Determination, and (ii) align the limit for water in ethanol with the Government’s policy intent for the 2019 Determination. The policy intention in making the 2019 Determination was to adjust the unit of measurement for water content in ethanol from volume by volume (expressed as v/v) to mass by mass (m/m), while retaining the equivalent value and taking into consideration the relative density of water to ethanol. The 2021 Determination amends the value to reflect this intent.  

The 2021 Determination is a legislative instrument for the purposes of the Legislation Act 2003.

Consultation

The 2019 Determination was developed following extensive public consultation in relation to a range of policy options to improve Australia’s fuel quality. Two rounds of public consultation were conducted, as well as targeted consultation with key industry stakeholders to finalise options for the legislative instruments that prescribe fuel standards. The stakeholders included fuel producers, fuel importers, vehicle manufacturers and automobile associations. Targeted consultation with key testing laboratories occurred to ensure the proposed changes reflected the most up-to-date testing methods for the relevant parameter.

 

The amendments to the spelling of phosphorus and the water parameters align the text of the 2019 Determination with the intent of the Government’s policy and these two changes were the subject of the initial consultation process described above.

 

Under the Act, before making a fuel standard, the Minister must also consult the Fuel Standards Consultative Committee (the Committee) (section 24A). The Committee provided advice on the exposure draft of the 2021 Determination.

Regulation impact analysis

The regulatory impacts of these amendments to the 2019 Determination were assessed as minor and not requiring a Regulation Impact Statement by the Office of Best Practice Regulation (OBPR ID 20699).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Details on the Fuel Quality Standards (Petrol) Amendment Determination 2021

 

Section 1 – Name of instrument

This section specifies that the name of the Determination is the Fuel Quality Standards (Petrol) Amendment Determination 2021 (the 2021 Determination).

Section 2 – Commencement

This section provides that the Determination commences the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

This section sets out the provision of the Fuel Quality Standards Act 2000 under which the Determination is made.

Section 4 – Schedules

This section is a machinery clause that allows the Schedule to operate according to its terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 1 – Amendments

 

Item 1: Subsection 5(2) (item 15 of the table in section 5(2))

This item amends the reference to the phosphorus parameter in the fuel standard for petrol. In the 2019 Determination, the adjective “Phosphorous” was incorrectly used. The intent of the 2019 Determination was to refer to the noun “Phosphorus”. This amendment aligns the 2019 Determination with the Government’s policy intention.

Item 2: Subsection 5(5)

This item amends the reference to phosphorus in subsection 5(5) of the 2019 Determination. In the 2019 Determination, the adjective “phosphorous” was incorrectly used. The intent of the 2019 Determination was to refer to the noun “phosphorus”. This amendment aligns the 2019 Determination with the Government’s policy intention. 

Item 3: Subsection 6(2) (item 12 of the table)

This item changes the maximum water parameter for ethanol. The 2019 Determination provided that the water parameter for ethanol was 1.0% m/m, however the policy intent was for the parameter to be 1.25% m/m (equivalent to 1.0% v/v). This item changes the water parameter for ethanol to 1.25% m/m, consistent with the Government’s original policy intent.

 

 

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Fuel Quality Standards (Petrol) Amendment Determination 2021

This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the legislative instrument

The purpose of the Fuel Quality Standards (Petrol) Determination 2021 (the 2021 Determination) is to amend Fuel Quality Standards (Petrol) Determination 2019 (the 2019 Determination). The 2019 Determination sets out the parameters and testing methods for petrol and ethanol in petrol used in Australia. The 2021 Determination makes three amendments to the 2019 Determination to align the 2019 Determination with the Government’s original policy intent.

Human rights implications

This Determination does not engage any of the applicable rights or freedoms.

Conclusion

This Determination is compatible with human rights as it does not raise any human rights issues.

 

The Hon Angus Taylor MP

Minister for Energy and Emissions Reduction

Overview

The Fuel Quality Standards Act 2000 was enacted to establish a legislative framework for regulating the quality of fuel supplied in Australia. This Act aims to reduce pollutants and emissions from fuel use, support the adoption of better engine and emission control technology, and ensure that appropriate fuel information is provided to consumers. The Act was created to address the need for consistent and high-quality fuel standards across the nation, which are essential for environmental protection and public health. The enacting body for this legislation is the Australian Parliament. The policy objective of the Act is to establish standards that mitigate the environmental and health impacts of fuel use while fostering the adoption of advanced technology in engine and emission controls. The Fuel Quality Standards (Petrol) Amendment Determination 2021 was introduced to correct errors and align the 2019 Determination with the government's original policy intent, particularly concerning the water content in ethanol and the correct spelling of phosphorus. This amendment ensures that the standards set forth in the 2019 Determination accurately reflect the intended policy goals.

Scope and Application

The Fuel Quality Standards Act 2000 serves as the legislative foundation for regulating the quality of fuel supplied in Australia, with the primary objectives of reducing pollutants and emissions, facilitating the adoption of better engine and emission control technology, and ensuring effective engine operation and provision of fuel information. This Act applies to all fuel supplied within Australia, including petrol, and encompasses entities such as fuel producers, fuel importers, vehicle manufacturers, and automobile associations. The geographic scope of the Act is national, extending across the Commonwealth, states, and territories of Australia. The Act allows for the establishment of fuel standards through legislative instruments, such as the Fuel Quality Standards (Petrol) Determination 2019, which specifies the parameters and testing methods for petrol and ethanol in petrol used in Australia. The 2021 Amendment Determination corrects certain errors in the 2019 Determination, including the correction of a spelling error regarding phosphorus and the adjustment of the water parameter for ethanol to align with the Government’s policy intent. These amendments ensure the 2019 Determination accurately reflects the intended standards and are subject to consultation with stakeholders and the Fuel Standards Consultative Committee as mandated by the Act. The legislative instrument is compatible with human rights, as it does not engage any of the applicable rights or freedoms.

Key Provisions

The Fuel Quality Standards (Petrol) Amendment Determination 2021 (the 2021 Determination) amends the 2019 Determination to correct spelling errors and align the limit for water in ethanol with the Government’s policy intent. Section 1 of the 2021 Determination specifies its name, while Section 2 states that it commences the day after registration on the Federal Register of Legislation. Section 3 identifies the authority under the Fuel Quality Standards Act 2000 (the Act) for making the Determination. The Schedule to the 2021 Determination contains the amendments to the 2019 Determination. Item 1 amends the reference to the phosphorus parameter in the fuel standard for petrol, correcting the spelling from “Phosphorous” to “Phosphorus”. Item 2 also corrects the spelling of “phosphorous” to “phosphorus” in subsection 5(5). Item 3 changes the maximum water parameter for ethanol from 1.0% m/m to 1.25% m/m, aligning with the Government’s original policy intent. The 2021 Determination imposes obligations on fuel producers and importers to ensure that the petrol they supply complies with the amended standards. Fuel producers and importers must ensure that the petrol they supply contains the correct parameters as set out in the 2021 Determination, specifically the correct spelling of “phosphorus” and the adjusted water parameter for ethanol. Non-compliance with these standards can result in legal consequences. Breaching the requirements set out in the 2021 Determination can lead to civil or criminal penalties. Under the Act, supplying fuel that does not meet the standards can result in fines. The maximum penalty for a corporation is $210,000 for a single offence and $1.05 million for a continuing offence. For an individual, the maximum penalty is $42,000 for a single offence and $210,000 for a continuing offence. Additionally, under section 37 of the Act, supplying fuel that does not comply with the standards can be considered an offence, which may lead to further criminal penalties, including imprisonment.

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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.