Assistant Treasurer David Bradbury announced transitional arrangements for the liquefied petroleum gas (LPG) and liquefied natural gas (LNG) industries when the carbon price is applied to the non-transport use of these fuels in 2012-13.
Under the Clean Energy Future package, from 1 July 2012 until 30 June 2013, the carbon price will be applied to the non-transport use of LPG and LNG through the fuel tax system.
Rather than the weekly reporting and payment arrangements normally required for excise duty payers, the LPG and LNG industries will be provided a one calendar month accounting period with reporting and payment required on or before the last day of the third following calendar month.
“The Government has previously acknowledged, following an extensive consultation process, the industries’ concerns around meeting their obligations under the normal payment arrangements and indicated that it would consider what options were available” said Mr Bradbury.
“This is a transitional measure only as the LPG and LNG industries will be covered by the carbon pricing mechanism from 1 July 2013.
“The Government also recognises the work of the Member for New England, Tony Windsor, in representing industry concerns and ensuring a smooth transition to the carbon pricing mechanism for the LPG and LNG sectors.”
Regulations to impose the effective carbon price on LPG and LNG for 2012-13 will be in place by 1 July 2012. The regulations will replace the current full automatic remission of excise for the non-transport use of LPG and LNG with a partial remission. Under the partial remission, excise of 3.68 cents per litre for LPG and 6.67 cents per kilogram for LNG will be collected by suppliers. These amounts represent the effective carbon price.
“The arrangements will provide the industries with an extended period to calculate their liabilities and then make payment” , said Mr Bradbury.
[mappress] LNG World News Staff, June 20, 2012