16 December 2003
Government Announces $1,000 Grant for Motorists
Kleenheat Gas and the general LPG industry welcomed the announcement by the Federal Government today of further fuel excise reforms targeted at the promotion of clean alternative transport fuels. The changes are good news for the Australian economy, motorists, the general public and the environment.
The changes include a capital grant of $1,000 to purchase a factory direct LPG vehicle or convert a new vehicle to
autogas.
The $1,000 grant will be available to motorists from 1 July 2008, the point at which a transition to a 2.5 cent per litre excise will be applied, increasing to a maximum excise level of 12.5 cents per litre over five equal annual steps through to July 2012. This means it will be 9 years before the maximum excise rate applies.
This excise level is based on the current excise level for petrol and diesel of 38.143 cents per litre.
“This news means autogas will always remain cheaper than petrol” said the General Manager of Kleenheat Gas, Mr Gary
Ireson.
“The WA Government provided leadership on this matter three years ago when it introduced the $500 subsidy – it’s good to see the example supported now by the Federal Government.
“With the consistent price difference of around 50 cents per litre compared to petrol, thousands of private motorists have already taken up the $500 subsidy and switched to autogas – the new $1,000 subsidy will only help support its use. This will ultimately be better for the health of Australians and benefit our environment,” he said.
Importantly the Federal Government’s new programme also includes an assurance of a sizeable differential in excise rates compared to petrol, ensuring that autogas remains price competitive with petrol and diesel. The lower tax rate on LPG recognises the contribution autogas makes to the environment and increased energy security.
“This approach ensures that autogas fuelled vehicles remain the first choice for medium to high distance travellers and with the grant, all users can afford to take advantage of the latest technology which will offer the best fuel efficiency and emission performance outcomes,” said Mr Ireson.
The Australian LPG Association had argued that the imposition of a “significant tax” would have had major implications on Australia’s small business sector, regional consumers and the general public.
The Federal Government’s decision to continue to support autogas in recognition of its clean fuel status has been seen as a support for Australia’s commitment to reducing greenhouse gas emissions and supporting the achievement of Kyoto protocols.
“It will secure Australia’s existing position as a world leader in the use of clean fuels such as autogas for automotive use.
“At a time of international insecurity, including the security of energy supply, the decision to continue to support a fuel which Australia and WA particularly has in abundance will minimise risks to Australia,” said Mr Ireson.
Media Release 16 December 2003