THE TRUCKING industry will receive extra fuel tax credits from 1 July 2010 to 30 June 2011 to offset the increase in fuel prices caused by the Federal Government’s Carbon Pollution Reduction Scheme (CPRS).
The Federal Government released an exposure draft of its CPRS fuel credit legislation for consultation this week.
Under the scheme, fuel companies will be required to buy carbon permits. The cost of those permits, which could initially be about 6.2 cents per litre, will be included in the price of fuel. The Government will reduce the 38.143 cents per litre fuel tax on a cent-for-cent basis for three years to shield motorists from the increased price of fuel.
However under the system, the trucking industry does not benefit from this reduction in the fuel tax and as a result, the Government will provide the industry with special CPRS fuel credits to offset fully the initial rise in fuel prices.
The CPRS fuel credit will be available to business users of on-road vehicles with a gross vehicle mass exceeding 4.5 tonnes.
Vehicles with a gross vehicle mass of 4.5 tonnes purchased before 1 July 2006 will also be eligible for the credit.
Under the exposure draft legislation, CPRS fuel credits will only be available to trucking operators until 1 July 2011.
The Government aims to introduce the CPRS on 1 July 2010.
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