Hon. P.G. Pendal questions the Treasurer about the discontinuation of the off-road diesel fuel rebate for recreational boat owners and requests its re-establishment. The Treasurer explains the abolition was due to an Intergovernmental Agreement and the Commonwealth's expanded Diesel Fuel Rebate Scheme, and the state will not reinstate the rebate.

AnsweredQoN 792Legislative Assembly
Asked
10 October 2000
Portfolio
Treasurer

QuestionView source ↗

792. Hon. P.G. PENDAL to the Treasurer:
(1) What is the status of the "off road diesel fuel rebate", as applied to recreational boat owners?
(2) If discontinued, what is the rationale behind this change?
(3) Is the Treasurer aware that recreational boat owners are calling for the re-establishment of the rebate?
(4) Will the Treasurer give consideration to re-establishing the rebate?

AnswerView source ↗

Answered
23 November 2000
Response time
44 days
The Minister Replied:
(1) The State's off-road diesel subsidy scheme (which provided a subsidy of 8.354 cents per litre for all off-road use of diesel, including recreational boating) was abolished from 1 July 2000 under the terms of an Intergovernmental Agreement between the Commonwealth and the States. At the same time, the Commonwealth's Diesel Fuel Rebate Scheme (DFRS) was expanded - specifically, it was increased to a full (100%) rebate of the total diesel excise (including the former State component), and the range of eligible users was broadened to include marine use of diesel and diesel used in rail transport, but only if used in the course of carrying on a business. Diesel used in recreational boating does not qualify for the Commonwealth's DFRS.
(2) Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, the Commonwealth's guarantee payments to the States (designed to ensure that no State budget is worse off in the transition to the new tax system) are calculated on the basis that State off-road diesel subsidy schemes are abolished in full. Thus, Western Australia had to abolish its off-road diesel subsidy scheme in full in order to remain budget neutral. Furthermore, as the Commonwealth now retains all of the revenue from fuel excise, the provision of subsidies or rebates to off-road diesel users (to compensate for the excise component) is a matter for the Commonwealth.
(3) Yes.
(4) For the reasons outlined in my response to question (2), the Government does not intend re-instating the off-road diesel subsidy scheme.

Explore WA Government Data

Search the full archive in the free dashboard, or query programmatically via API.

Explore more