Biofuels are the lowest emission alternative to fossil fuels, are ‘drop in’ alternatives and are truly sustainable and renewable sources of energy. This ensures that the longer term outlook for the industry is strong. The ever-increasing high cost of extracting crude oil from fields as well as newly established fields, the continuing search for more fields and a pending pricing of carbon on a world-wide basis will create conditions which are favourable for the industry.
As of 1st July 2011, the biofuels industry in Australia was given an extension whereby the current taxation arrangements for renewable fuels (ethanol, biodiesel and renewable diesel) continue for the next 10 years. In this way, the industry pays its full excise and it is then granted back to them, thus resulting in a neutral position for the taxpayer. Methanol will continue to be untaxed. The Government will undertake a review of the taxation and grant arrangements for ethanol, biodiesel, renewable diesel and methanol after 30 June 2021.
In addition, the Government will consider the carbon emissions of alternative fuels as part of its consideration of arrangement for fuel under a carbon price.
July 24, 2014, 9:01 am