Fuel Tax: AIP Policy Principles
From a tax policy perspective, AIP supports a fuel tax regime for transport fuels that:
AIP also supports relief from the burden of fuel tax being provided for ‘business inputs’ to production, and has therefore supported the policy intent of the Fuel Tax Credits system.
Overall, AIP supports the principle that all fuel used for transport - including liquid fuels (mainstream transport fuels and biofuels) and gaseous fuels (LPG, LNG and CNG) - should be taxed on a comprehensive and neutral basis, to ensure the most efficient and robust fuel tax system for road transport fuels.
AIP recognises that a transition to this efficient fuel tax policy framework may be appropriate.
The 50% fuel tax concession for alternative fuels is inconsistent with AIP’s fuel tax principles above, and generates both a significant tax expenditure for Government in terms of foregone revenue and added complexity to the administration of the fuel tax regime for business and government.
AIP acknowledges that the Government may consider there is a case for assistance for alternative fuels.
However, AIP believes that such government assistance:
Fuel Tax: AIP Submissions
Various public submissions outlining AIP policy principles, analysis and views on Fuel Taxation can be found here.
Fuel Tax: ATO Guidance
The Australian Taxation Office (ATO) provides published guidance on excise as it relates to fuel products, including:
Fuel Tax: Current Excise Rates
For the current excise rates of conventional petroleum products (Petrol, Diesel, Jet Fuel) and alternative petroleum fuels (LPG, LNG, CNG, biodiesel, renewable diesel, fuel ethanol) see https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/fuel-excise/excise-rates-for-fuel/ .
Excise rates on fuel and petroleum products (other than aviation fuels) are indexed twice a year in line with the consumer price index – generally on 1 February and 1 August.
For more information on fuel excise indexation, see https://www.ato.gov.au/general/new-legislation/in-detail/indirect-taxes/excise/reintroduction-of-fuel-excise-indexation/.
For more information on the current excise on biofuels, see https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/fuel-excise/biofuels/.
For more information on the current excise on gaseous fuels, see https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/fuel-excise/gaseous-fuels/.
Fuel Tax: International Comparison
A comparison of international petrol and diesel taxes and prices is available here here.
Fuel Tax: Policy Developments
Some additional fuel tax reference sources include: