The Federal Government has 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.

 

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,” Assistant Treasurer David 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.”

 

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.