Diesel subsidies
Subsidies are available for diesel sold by zone retailers (service stations) from their premises. A subsidy is also payable where diesel is consumed by a business located in a zone in connection with a business or activity conducted from those premises.
A person is guilty of an offence if they make a bulk purchase of subsidised diesel fuel for off-road use. A bulk purchase is any purchase of 100 litres of diesel or more that is not pumped into the running tanks of a road vehicle.
An off-road use is any use other than propelling a motor vehicle on a public road. Incidental off-road use by a vehicle that travels mainly on public road does not count as off-road use.
When a person has a bulk tank that contains both subsidised and non-subsidised diesel, any use in excess of the volume of non-subsided fuel stored in the tank is taken to be an off-road use.
The off-road use of diesel may entitle the user to claim from the Commonwealth Government under the Commonwealth Diesel Fuel Rebate Scheme. Enquires about this scheme should be addressed to the Australian Taxation Office.
Persons who have committed an offence by making a bulk purchase of subsidised diesel and using it for an off-road purpose are absolved of that offence if, within 60 days of the improper consumption, they pay to the Chief Commissioner the value of the subsidy applicable to that sale.
The maximum penalty for an offence is $11,000.
