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

The advice that I have is as follows. Waste oil recyclers make fuel and accordingly have been licensed as excise manufacturers since the late 1990s. Their principal output is about 200 million litres a year of burner fuel, used to heat greenhouses, kilns and the like. This is clearly liquid fuel capable of being used in an internal combustion system, so they need to stay within the excise system, in accordance with the government’s fuel tax policy decisions, as announced by the Prime Minister and the Treasurer at various times. Similarly, for the purpose of users of their products receiving relief from the incidence of excise, the products should be treated for the fuel tax credits in the same manner as competing conventional products. Users of recycled products for burner fuel uses will be eligible for the two-year transitional arrangements where they qualify. Not to do so would be inconsistent with the Treasurer’s announcement of 16 June 2004 that the government would introduce a new business credit system. This system will replace all existing rebates and subsidies.