The Biofuels Association of Australia (BAA) welcomes the bipartisan agreement on the taxation of biodiesel and ethanol produced in Australia.
The agreement will see the excise rate payable on biodiesel phased in in equal increments over the next 16 years, beginning at 0% in 2015-16 and increasing to 50% of the diesel excise rate in 2030-31.
CEO of the BAA, Gavin Hughes, said the deal will now allow the industry to focus on the longer term and provides a sustainable footing for the biofuels industry to grow and delivers on the government objective of moving biofuels into the excise framework.
“Without this agreement, the domestic biodiesel industry faced the very real possibility of forced closure by 2018. Now, Australian biodiesel producers are able to take a long term view and plan their growth.
“Momentum for the use of biofuels as an alternative to petrol and diesel is starting to shift once again around the country with the Queensland government planning to join NSW in mandating ethanol and biodiesel. Governments at all levels recognise the role that increased use of biofuels can have on creating the next generation of jobs, improving health outcomes through reducing harmful emissions, assisting in decarbonising our liquid fuels and reducing our reliance on imported fuels.
“Today’s announcement, which provides investor certainty for the industry with respect to future excise arrangements, also sends a definite signal to the wider community that biofuels have an important role to play in helping Australia create a more sustainable future,” Mr Hughes said.