The Assistant Treasurer, Senator Rod Kemp, today announced changes to the petroleum provisions in the Excise Tariff Act 1921 to combat fuel substitution activities.
Fuel substitution occurs when parties replace petrol or diesel used as transport fuel with product which is subject to a lower rate of excise.
"Fuel substitution constitutes excise evasion and leads to unfair competition and destabilisation of the marketplace. It harms honest sellers and will not be tolerated by the Government," Senator Kemp said.
The amendments to the Excise Tariff Act 1921 will operate to restrict access to duty free petroleum products to those who can demonstrate a clear legitimate need for it.
The amendments will not create an additional excise liability.
The date for implementation is 15 November 1999.
CANBERRA
18 October 1999
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