Senate debates

Thursday, 22 June 2006

Fuel Tax Bill 2006; Fuel Tax (Consequential and Transitional Provisions) Bill 2006

In Committee

7:42 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

No, that is not the point I am making. I am saying that there is a certain proportion or margin of biodiesel in the quality standard for diesel fuel below which the diesel as a product will retain the characteristics of diesel under the standard. About five per cent biodiesel is the figure being used, under which the fuel would still remain within the standard for diesel. The standard is what is being used as the descriptor under the act. There is, I suppose, a capacity for a fuel of up to five per cent biodiesel to retain both the advantage of the cleaner fuel grants scheme but also be able to claim a 100 per cent diesel fuel rebate with the product being recognised as diesel. That avoids the situation of having to have calculations for very small percentages or quantities of biodiesel within the diesel mix.

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