Australia introduces legislation to change tax arrangements for gas

The Australian government has moved to introduce a key change in legislation for tax arrangements for liquefied petroleum gas, liquefied natural gas and compressed natural gas. The new tax legislation will become effective on December 1, 2011 and will be part of a five-year phase in program. The tax will apply on an energy-content basis but there will be a 50% tax discount for alternative fuel use. All current tax arrangements for renewable fuels such as ethanol, biodiesel and renewable diesel will remain the same for the next 10 years. Methanol is not taxable. (May 12,2011)