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

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Legislation au C2026A00059 In force Act

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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.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

30 June 2026

2.  Schedule 1

1 July 2026.

1 July 2026

Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

 

(84/26)

 

Overview

The Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026 was enacted by the Parliament of Australia to address the problem of high fuel excise rates that were impacting consumers and businesses. This Act aims to provide temporary relief by amending the Customs Tariff Act 1995 and the Excise Tariff Act 1921. Specifically, it reduces fuel duty rates by 30.4% during a specified rate reduction period, starting from 1 July 2026 until the day before the August adjustment day, which is either 1 August 2026 or another day determined by the indexation process. The policy objective of this Act is to alleviate the financial burden on consumers and businesses by lowering fuel excise rates temporarily, thereby supporting economic stability during a period of high fuel prices. The Act came into force on 30 June 2026, with specific provisions for the Customs Tariff Act 1995 and the Excise Tariff Act 1921 commencing on 1 July 2026.

Scope and Application

The Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026 is a legislative measure designed to amend the law relating to taxation, specifically focusing on fuel excise duties. This Act applies to entities involved in the importation and manufacture of goods subject to fuel excise duties in Australia. It affects the Customs Tariff Act 1995 and the Excise Tariff Act 1921, thereby impacting both imported goods and goods manufactured within Australia. The Act applies nationally across Australia and commenced on 30 June 2026, with further provisions coming into effect on 1 July 2026. The Act introduces a rate reduction period from 1 July 2026 until the day before the August adjustment day, which is set for 1 August 2026 unless otherwise specified. Additionally, the Act provides for the restoration of rates on the August adjustment day and outlines transitional provisions to ensure continuity for goods subject to the previous rate reduction period. Subordinate instruments may extend or restrict the application of this Act, but such amendments are not detailed in the primary text provided.

Key Provisions

The Treasury Laws Amendment (Fuel Excise Relief No. 2) Act 2026 introduces amendments to the Customs Tariff Act 1995 and the Excise Tariff Act 1921, primarily concerning fuel duty rates. Section 1 of the Act establishes its short title and states that it aims to amend taxation laws and related matters. The Act's provisions come into effect on different dates, as outlined in Section 2, with most provisions taking effect on 30 June 2026, the day the Act receives Royal Assent, and Schedule 1 provisions starting on 1 July 2026. The schedules specify amendments to the Customs Tariff Act 1995 and the Excise Tariff Act 1921. The Act imposes specific obligations on entities governed by the amended Acts. For instance, under Schedule 1, the Customs Tariff Act 1995's Subsection 19AABA(1) is repealed and replaced to set a fuel duty rate during a rate reduction period at 69.6% of the rate that would have applied. This reduced rate applies to goods imported into Australia on or after 1 July 2026, as specified in Subsection 19AABA(3A). Similarly, the Excise Tariff Act 1921’s Subsection 6K(1) is amended to establish a reduced CPI-indexed fuel rate during a rate reduction period, which applies to goods manufactured or produced in Australia on or after the August adjustment day. These amendments necessitate that entities subject to these Acts adjust their calculations and reporting to comply with the new rates. Breaches of the provisions set out in this Act may lead to various consequences. While the Act itself does not explicitly state offences or penalties, the underlying Acts—Customs Tariff Act 1995 and Excise Tariff Act 1921—likely outline penalties for non-compliance. Typically, penalties for non-compliance with tax laws can include fines and imprisonment. The specific penalties would be governed by the respective Acts, which could impose financial penalties and, in severe cases, criminal charges for wilful or negligent breaches. Compliance with these rates and the obligations to report and remit duties accurately is crucial to avoid such consequences.

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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.