An excise is a tax on alcohol, tobacco, fuel and petroleum products produced or manufactured in Australia. Fuel blending (combining fuel with another substance or substances, whether fuel or otherwise), including with ethanol and biodiesel, is considered manufacturing and is therefore subject to the excise tariffs laid out below. There are some exceptions, including to blends subject to a legislative determination, and blends unable to be used in an internal combustion engine, when duties applicable to the components of the blend have been paid. The following chart, provided by the ATO, will help you to determine if your product is subject to excise:
Further information on the excise treatment of fuel blends is available here.
[Last Updated 1 June 2015] Note: Excise rates are indexed on the 1 February and 1 August each year.
The various types of fuel available in Australia are subject to different excise rates. A summary of current excise rates as displayed on the ATO website, is provided below.
|Unit||Description of good||Rate|
|L||Petroleum condensate||$0.389 per litre|
|L||Stabilised crude petroleum oil||$0.389 per litre|
|L||Topped crude petroleum oil||$0.389 per litre|
|L||Gasoline (other than for use as fuel in aircraft)||$0.389 per litre|
|L||Gasoline for use as fuel in aircraft||$0.03556 per litre|
|L||Blends of gasoline and ethanol||The amount of duty worked out under section 6G (using $0.389 per litre at step 3 at 6G)|
|L||Diesel (other than biodiesel)||$0.389 per litre|
|L||Blends of diesel and ethanol||The amount of duty worked out under section 6G (using $0.389 per litre at step 3 at 6G)|
|L||Blends of diesel and biodiesel||The amount of duty worked out under section 6G (using $0.389 per litre at step 3 at 6G)|
|L||Liquefied petroleum gas, other than liquefied petroleum gas exempted from excise duty by section 77HB of the Excise Act 1901||$0.102 per litre|
|L||Liquefied natural gas, other than liquefied natural gas exempted from excise duty by section 77HB of the Excise Act 1901||$0.213 per kilogram|
|L||Compressed natural gas, other than compressed natural gas exempted from excise duty by section 77HA of the Excise Act 1901||$0.213 per kilogram|
|L||Denatured ethanol for use as fuel in an internal combustion engine||$0.389 per litre|
|L||Biodiesel||$0.389 per litre|
|L||Petroleum products (other than blends) not elsewhere included (other than goods covered by section 77J of the Excise Act 1901)||$0.389 per litre|
|L||Blends of 1 or more of the above goods (with or without other substances) not elsewhere included that can be used as fuel in an internal combustion engine (other than goods covered by section 77J of the Excise Act 1901)||The amount of duty worked out under section 6G (using $0.389 per litre at step 3 at 6G)|
Imported fuels and petroleum products are also subject to a customs duty equivalent to the excise to ensure an even trading ground with Australian goods.
The manufacturing of biodiesel, as well as blending it with other excisable goods, is subject to licenses in Australia. The type of license required, i.e. manufacturing or storage, depends upon the activity undertaken by the business. For those looking to produce or blend biodiesel, more information on the required license and excises payable is available from the ATO.