CANBERRA: The Australian Government has reached an agreement with the Opposition on the implementation of fuel excise duty hikes originally proposed in the 2014 Budget.
The 2014 Budget, presented in May 2014, proposed a series of gradual increases in the excise duty rate on domestically produced ethanol from July 1, 2016. The increases were intended to take place over the course of five years, until the rate reached 12.5 cents per liter. The excise rate for biodiesel was to be increased over five years from July 1, 2016, until it reached 50 percent of the energy content equivalent tax rate.
In a statement released on June 17, 2015, Treasurer Joe Hockey said the Government had come to an agreement with the Labor Party to implement new rates.
“The Government will table amendments next week in the Senate to phase in the excise payment for biodiesel producers in equal increments over 16 years, from a rate of zero in 2015-16 to a final rate of approximately 50 percent of the full petrol and diesel excise rate in 2030-31,” Hockey confirmed.
