Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026

Sue Lines

I will now deal with Committee of the Whole amendments circulated by the Australian Greens. The question is that the amendment on sheet 3890 be agreed to.

Greens _'__circulated_ amendment—

(1) Schedule 1, page 6 (after line 2), at the end of the Schedule, add:

Fuel Tax Act 2006

10 Subsection 43-5(1) (note)

Omit "section 43-10", substitute "sections 43-10 and 43-15".

11 At the end of Subdivision 43-A

Add:

43-15 Cap on fuel tax credits

Annual credits cap

(1) This section reduces your fuel tax credits for taxable fuel so as to ensure the sum of those credits over the course of any 12-month period does not exceed $50,000,000 (which is the annual credits cap).

Reduction so as not to exceed annual credits cap

(2) The *amount of your fuel tax credits for taxable fuel that you:

(a) acquire in, or import into, the indirect tax zone on a day; or

(b) both:

(i) manufacture in the indirect tax zone; and

(ii) enter for home consumption (within the meaning of the Excise Act 1901) on a day;

is reduced by so much of your aggregated annual credits for that day as exceeds the annual credits cap.

Example 1: Sarah acquires taxable fuel on 5 January 2026. The effective fuel tax payable on the fuel is $65,000,000. The amount of Sarah's fuel tax credits for the fuel is reduced to $50,000,000. Sarah is, on 5 January 2026, in excess of the annual credits cap and will not receive fuel tax credits for any taxable fuel she acquires, imports or manufactures for 12 months after that day.

Example 2: Tom acquires taxable fuel to use for travelling on a public road as follows:

(a) on 3 September 2025 he acquires fuel for which the effective fuel tax is $30,000,000 and the road user charge is $300,000;

(b) on 3 January 2026 he acquires fuel for which the effective fuel tax is $40,000,000 and the road user charge is $400,000;

(c) on 3 May 2026 he acquires fuel for which the effective fuel tax is $20,000,000 and the road user charge is $200,000.

Tom receives $29,700,000 in fuel tax credits for the fuel he acquires on 3 September 2025.

For the fuel Tom acquires on 3 January 2026, he would ordinarily receive $39,600,000 in fuel tax credits. However, on that day, he exceeds the annual credits cap by $19,300,000. He only receives $20,300,000 in fuel tax credits for the fuel he acquires on that day.

For the fuel Tom acquires on 3 May 2026, he would ordinarily receive $19,800,000 in fuel tax credits. However, on that day, he exceeds the annual credits cap by that entire amount and receives nil in fuel tax credits for that fuel.

Aggregated annual credits

(3) Your aggregated annual credits for a day is the sum of all of the following amounts (as reduced by section 43-10 (as applicable) and by any previous application of this section before that day):

(a) the *amounts of your fuel tax credits for taxable fuel that you acquire in or import into the indirect tax zone in the period beginning 12 months before that day and ending on that day;

(b) the amounts of your fuel tax credits for taxable fuel that:

(i) you manufacture; and

(ii) you enter for home consumption (within the meaning of the Excise Act 1901) in the period beginning 12 months before that day and ending on that day.

Special rules

(4) This section only applies to you if at the time you acquire, manufacture or import the fuel:

(a) you do so for use in *carrying on your *enterprise; and

(b) you are *registered for GST or *required to be registered for GST.

(5) In working out any reductions under subsection (2) in respect of an *amount on a day, first apply any reductions under section 43-10 in respect of that amount on that day.

12 Section 110-5

Insert:

aggregated annual credits: see subsection 43-15(3).

annual credits cap: see subsection 43-15(1).