Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026

Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026

No. 59, 2026

An Act to amend the law relating to taxation, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Customs Tariff Act 1995

Excise Tariff Act 1921

Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026

No. 59, 2026

An Act to amend the law relating to taxation, and for related purposes

[Assented to 30 June 2026]

The Parliament of Australia enacts:

1  Short title

  This Act is the Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026.

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.

Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Customs Tariff Act 1995

1  Subsection 19AABA(1)

Repeal the subsection (not including the heading), substitute:

 (1) Despite any other provision of this Act, a fuel duty rate on a day in a rate reduction period is a rate equal to 69.6% of the fuel duty rate that would have applied on that day apart from this section (including because of the operation of section 19).

Note: For fuel duty rate, see section 19AAC and for rate reduction period, see subsection (4).

2  After subsection 19AABA(3)

Insert:

Restoration of rates

 (3A) This Act has effect as if, on the August adjustment day, each fuel duty rate is a rate equal to the fuel duty rate that would have applied on that day apart from subsection (1) (including because of the operation of section 19).

Note 1:  For August adjustment day, see subsection (4).

Note 2: A rate that applies under this subsection is subject to later indexation under section 19.

 (3B) A fuel duty rate that applies under subsection (3A) applies to:

 (a) goods imported into Australia on or after the August adjustment day; and

 (b) goods imported into Australia before the August adjustment day, where the time for working out the rate of import duty on the goods had not occurred before that day.

Application of rates for previous rate reduction period

 (3C) To avoid doubt, this section as in force immediately before the commencement of this subsection continues to apply in relation to goods to which this section applied at that time because of the operation of subsection (3) of this section.

3  Subsection 19AABA(4)

Insert:

August adjustment day means:

 (a) 1 August 2026, unless paragraph (b) applies; or

 (b) if, in relation to the indexation day that is 1 August 2026, the replacement under section 19 of a rate of duty happens on another day in accordance with subsection 19(5)—that other day.

4  Subsection 19AABA(4) (definition of rate reduction period)

Repeal the definition, substitute:

rate reduction period means the period beginning on 1 July 2026 and ending on the day before the August adjustment day.

Excise Tariff Act 1921

5  Subsection 6K(1)

Repeal the subsection (not including the heading), substitute:

 (1) Despite any other provision of this Act, each CPI indexed fuel rate is, during a rate reduction period, a rate equal to 69.6% of the fuel duty rate that would have applied on that day apart from this section (including because of the operation of section 6A).

Note: For CPI indexed fuel rate and rate reduction period, see subsection (6).

6  After subsection 6K(3)

Insert:

Restoration of rates

 (3A) This Act has effect as if, on the August adjustment day, each CPI indexed fuel rate is a rate equal to the rate that it would have been on that day apart from subsection (1) (including because of the operation of section 6A).

Note 1: For August adjustment day, see subsection (6).

Note 2: A rate that applies under this subsection is subject to later indexation under section 6A.

 (3B) A CPI indexed fuel rate that applies under subsection (3A) applies to:

 (a) goods manufactured or produced in Australia on or after the August adjustment day; and

 (b) goods manufactured or produced in Australia before the August adjustment day if:

 (i) on that day, the goods were either subject to the CEO’s control, or were 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.

Application of rates for previous rate reduction period

 (3C) To avoid doubt, this section as in force immediately before the commencement of this subsection continues to apply in relation to goods to which this section applied at that time because of the operation of subsection (3) of this section.

7  Subsection 6K(5)

Repeal the subsection.

8  Subsection 6K(6)

Insert:

August adjustment day means:

 (a) 1 August 2026, unless paragraph (b) applies; or

 (b) if, in relation to the indexation day that is 1 August 2026, the replacement under section 6A of a rate of duty happens on another day in accordance with subsection 6A(5)—that other day.

9  Subsection 6K(6) (definition of rate reduction period)

Repeal the definition, substitute:

rate reduction period means the period beginning on 1 July 2026 and ending on the day before the August adjustment day.

[Minister’s second reading speech made in—

House of Representatives on 22 June 2026

Senate on 29 June 2026]