Steven Ciobo (Moncrieff, Liberal Party, Parliamentary Secretary to the Minister for Foreign Affairs) Share this | Link to this | Hansard source

I present a supplementary explanatory memorandum to the bill and I move the government amendment as circulated:

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

First I would like to thank those members who have contributed to this debate. These bills implement the government's 2014-15 budget measures to reform the taxation treatment of biodiesel and ethanol. The measures have been amended to allow for an additional transitional period for biodiesel producers, to give that sector longer to adapt to these excise changes. These changes to the taxation of biodiesel and ethanol will continue to provide support to these Australian industries while keeping the budget position on track.

These bills also abolish the cleaner fuels grants scheme, which refunds excise and excise equivalent customs duty paid on both imported and domestically produced biodiesel. In addition, the ethanol production grants scheme, which refunds excise paid on ethanol to domestic producers will cease on 30 June 2015. These changes reflect the important role that domestic ethanol and biodiesel producers play in the Australian economy and encourage diversity in Australia's fuel mix.

The budget measures are estimated to save the government $257 million over the current forward estimates period, and the new biodiesel transition is estimated to have a small cost to the budget of $6.5 million over the forward estimates period. I commend these bills to the House.

Question agreed to.

Bill, as amended, agreed to.