Fuel Tax Reform

Name of policy Fuel Tax Reform Australia 2006
Jurisdiction Country
Supranational region
Country Australia
Region Oceania


Subnational region or state
City or local
Policy objective
  • Mitigation
Type of policy instrument
  • Economic Instruments
    • Fiscal or financial incentives
      • Energy and other taxes
Sector name
  • Buildings
    • Industry
      • Industrial energy related
    • Transport
      • Air
      • Heavy duty vehicles
      • Light duty vehicles
    Policy description In the transport sector, Australia applies fuel taxes on a per-litre basis to several fuels including gasoline, diesel and liquefied petroleum gas (LPG). This is part of the Fuel Tax Reform.

    For heating and process use (industry, commercial and residential sectors), only oil products are taxed. Tax expenditures apply to diesel an gasoline in agriculture and fisheries, gasoline for heavy vehicles. diesel for heavy vehicles as well as industrial, commericial and residential uses, and all other oil products in industrial and commercial sectors.

    Current tax rates: https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/fuel-excise/excise-rates-for-fuel/

    Policy type
    • Changing activity
    • Energy efficiency
    • Renewables
    • Nuclear or CCS or fuel switch
    • Unknown5
    Policy stringency
    Implementation state Implemented
    Date of decision 2006
    Start date of implementation
    End date of implementation
    High impact GHG reduction
    Impact indicator


    Source or references http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/taxing-energy-use/australia_9789264183933-5-en

    http://www.aip.com.au/pricing/taxes.htm https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/fuel-excise/excise-rates-for-fuel/

    Supports policies
    Is supported by policies
    Comments (background and assessment)
    Status Final

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