Commonwealth of Australia Explanatory Memoranda

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FUEL TAX BILL 2006

                               2004-2005-2006



     THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA



                      HOUSE OF REPRESENTATIVES




                            FUEL TAX BILL 2006




          SUPPLEMENTARY EXPLANATORY MEMORANDUM

            Amendment to be moved on behalf of the Government



                        (Circulated by authority of the
                    Treasurer, the Hon Peter Costello MP)




Explanation of Amendment 1

         1.1        Amendment 1 adds an additional subsection to section 65-5
         (attribution rules) to prevent taxpayers from claiming a possible double
         entitlement to a credit.

         1.2        Where taxpayers are not members of the Greenhouse Challenge
         Plus Programme, they cannot claim more than $3 million in fuel tax
         credits in any financial year. Taxpayers can regain their lost credits by
         joining the programme. The attribution rules in the Bill determine the
         period in which a taxpayer can claim their fuel tax credits. Those rules are
         drafted flexibly to enable taxpayers to delay any claims for their credits.
         However, the interaction of the Greenhouse Challenge Plus Programme
         rules and the attribution rules meant that taxpayers after joining the
         programme might be able to effectively claim their lost credits twice.
         This amendment prevents that possible double entitlement.