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Bulk end users

The Fuel Subsidy Scheme was abolished on 1 July 2009.

Who was a bulk end user?

If you bought fuel from a distributor to use in your business or to operate equipment, you could apply for a ‘bulk end user’ licence. To be eligible, the fuel must have been delivered directly into the running tanks of your vehicle or equipment from your storage site or by your distributor after 30 September 2000 but before 1 July 2009.

With this licence, you could buy the fuel at an unsubsidised price and later claim the subsidy from us.

Bulk end users included:

  • farmers
  • transport companies
  • bus operators.

What did the subsidy cover?

Bulk end users could claim the subsidy on the first 2,000 litres (per day, per vehicle) of motor spirit they used for any purpose. This includes leaded and unleaded petrol, lead replacement petrol and ethanol-blended petrol.

They could also claim the subsidy on diesel and bio-diesel but only on vehicles used to travel on public roads. Diesel used for off-road purposes was not eligible for the subsidy.

Example 1

You supplied your truck with 100 litres of diesel directly from your bulk storage tank and travelled on a public road. You could claim the subsidy for this fuel.

While you were travelling, you decided to top up at a service station. You could not claim the subsidy for the fuel that you bought at the service station. The subsidy was already included in the diesel price.

Example 2

You supplied your motorbike with 10 litres of petrol and used some or all of this petrol for riding around a farm or on non-public roads. You could claim the subsidy on this fuel.

Federal assistance

The Commonwealth Government provides assistance to off-road diesel users through the fuel tax credit scheme. For more information regarding the fuel tax credit scheme, please visit the Australian Tax Office website.

Top call centre questions

When do I stop being entitled to receive the fuel subsidy?

You can claim for bulk end user fuel delivered directly into the running tank of your vehicle or equipment before 1 July 2009.

Fuel used after that date will not be subsidised.

Can I claim for fuel that is in my storage tank on or after 1 July 2009?

No.

Do I need to do anything when the subsidy ends at midnight on 30 June 2009?

Yes. You should make a record of fuel on hand at close of business on 30 June 2009. No subsidy may be claimed for this fuel.

I received a provisional subsidy payment for 2008–09. Do I need to lodge a return?

Yes.  The 2008–09 annual return is due by 1 September 2009.

My provisional subsidy for 2008–09 is more than I am entitled to for the year. What should I do?

When you lodge your 2008–09 annual return, we will work out your subsidy entitlement for the year.

If you received more provisional subsidy than you were entitled to, we will invoice you for the amount you need to repay. If your provisional subsidy payment was less than your entitlement, we will pay you the difference.

I claim my BEU subsidy in arrears. What should I do to make sure I receive my subsidy for 2008–09 and any earlier years I haven’t claimed for?

You must lodge your claim for all subsidies by 30 September 2009, as no subsidies will be paid on claims received after this date.

Do I need to lodge an annual return for 2008–09?

You must lodge an annual return if you received a provisional subsidy for 2008–09 or will make a subsidy claim for fuel used in that year. Subsidy claims for 2008–09 must be lodged by 30 September 2009.

What happens if I deliver diesel into my running tank on 30 June 2009 or before, but then use it for an off road purpose after 30 June 2009?

This diesel is not elegible for the subsidy, even though it is used for an off-road purpose after 30 June 2009. You cannot claim a subsidy for this diesel. If you have already made a claim, you must repay the subsidy.

 

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Last reviewed 9 October 2009

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