The Fuel Tax Bill 2006 is designed to implement significant changes to the fuel tax regime as suggested by the Australian Government's energy white paper.
The new legislation will also establish a framework for discounted rates for liquefied natural gas and compressed natural gas, with a proposed starting date of July 2011.
These fuels will also become eligible for energy credits when used for certain purposes, with a plan to make fuels used in off-road business applications tax-free over time.
From July 2006, on-road energy credits will be extended to the operators of vehicles between 4.5 and 20 tonnes in urban areas, applied to all taxable fuels, including petrol.
Treasury said businesses should be able to be offset the cost of complying with the new fuel tax regime by claiming energy credits in normal business activity statement reporting.
