Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I move government amendment:

(1) Schedule 1, item 4, pages 4 and 5 (table items 2 to 6), omit the table items, substitute:

I also table a supplementary explanatory memorandum relating to the amendment that I have just moved to the Excise Tariff Amendment (Ethanol and Biodiesel) Bill.

As I have just indicated in my summing-up speech, this parliamentary amendment extends the phase-in of the excise rate applying to domestically produced biodiesel by 10 years. This will provide domestic producers with a total of 16 years before the measure will be completely implemented at which time biodiesel producers will phase in excise rates—that is, 50 per cent of the rate that applies to diesel and petrol, consistent with Australia's alternative fuels taxation policy.

Especially during the initial six years of the phase-in of the excise rate for domestically produced biodiesel, this will occur in parallel with that for domestic fuel and ethanol. The extended phase-in will cost $6.5 million over the forward estimates period. This change will assist domestic biodiesel producers by providing them with more time to adjust their business models to an increase in the rate of excise while keeping the budget position on track.

Question agreed to.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

The question is that the bill as amended be agreed to.

Question agreed to.

Bill reported with an amendment