Indirect taxes update

May 15, 2014

iStock_000016761568LargeThe Government has announced in the Budget that, from 1 August 2014, they will be re-introducing the twice yearly indexation of the fuel tax excise.
 

This scheme is expected to generate $2.2 billion in revenue that is intended to be used for funding new road infrastructure. This change is also aimed at improving Australia’s transportation and commercial infrastructure.
 

The burden of fuel excise indexation will fall largely on consumers and to a lesser extent on the business sector.
 

However, further changes to schemes relating to fuel products that may have implications for businesses include:
• a reduction in the net excise on ethanol and biodiesel to nil from 1 July 2015
• a gradual increase in the excise on ethanol and biodiesel from 1 July 2016

 

The decision to freeze the excise was taken in March 2001 in response to opposition to the GST and soaring petrol prices.
 

No changes were announced in the Budget for other indirect taxes, including the goods and services tax, the wine equalisation tax and other excises.

 

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