The taxation treatment for ethanol is laid out in the Alternative Fuels Act as amended by the Excise Tariff Amendment (Ethanol and Biodiesel) Act 2015.

The rates of excise duty for domestically manufactured fuel ethanol will commence at zero from July 1 2015 and then increase on 1 July of each subsequent year by 6.554% until the final schedule rate of 32.77% of the excise duty rate for petrol is attained.

Imported ethanol will maintain an excise rate equivalent to that of petrol.

 Financial Year Excise Rate for Domestic Ethanol Excise Rate for Imported Ethanol
 1 July ’15 – 30 July ’16  0%  100%
  1 July ’16 – 30 July ’17  6.554%  100%
  1 July ’17 – 30 July ’18  13.108%  100%
  1 July ’18 – 30 July ’19  19.662% 100%
 1 July ’19 – 30 July ’20  26.216%  100%
 1 July ’20 – 30 July ’21 32.77% 100%

As the excise rate is expressed as a percentage of the Petrol Excise rate, its value will increase in line with the indexation of petrol which occurs biannually in February and August.

For the current petrol excise rates please refer to the ATO fuel tax website.

The taxation treatment for biodiesel is laid out in the Alternative Fuels Act as amended by the Excise Tariff Amendment (Ethanol and Biodiesel) Act 2015.

The rates of excise duty for domestically manufactured biodiesel will commence at zero from July 1 2015 and then increase on 1 July of each subsequent year by 3.333% until the final schedule rate of 50% of the excise duty rate for diesel is attained.

Imported biodiesel will maintain an excise rate equivalent to that of diesel.

 Financial Year Excise Rate for Domestic Biodiesel Excise Rate for Imported Biodiesel
 1 July ’15 – 30 July ’16  0%  100%
  1 July ’16 – 30 July ’17 3.333%  100%
  1 July ’17 – 30 July ’18 6.667%  100%
  1 July ’18 – 30 July ’19  10% 100%
 1 July ’19 – 30 July ’20 13.333%  100%
 1 July ’20 – 30 July ’21 16.667% 100%
 1 July ’21 – 30 July ’22 20% 100%
 1 July ’22 – 30 July ’23 23.333% 100%
 1 July ’23 – 30 July ’24 26.667% 100%
 1 July ’24 – 30 July ’25 30% 100%
 1 July ’25 – 30 July ’26 33.333% 100%
 1 July ’26 – 30 July ’27 36.667% 100%
 1 July ’27 – 30 July ’28 40% 100%
 1 July ’28 – 30 July ’29 43.333% 100%
 1 July ’29 – 30 July ’30 46.667% 100%
 1 July ’30 & beyond 50% 100%

As the excise rate is expressed as a percentage of the Diesel Excise rate, its value will increase in line with the indexation of diesel which occurs biannually in February and August.

For the current diesel excise rates please refer to the ATO fuel tax website.