Australia: Consultation on single rate for excise refunds on return petroleum from vapor recovery units
The consultation closes on 3 October 2023.
The consultation closes on 3 October 2023.
Treasury opened a consultation on a single average benchmark recovery rate for use by businesses to calculate and claim excise refunds on returned duty-paid petroleum recovered through vapor recovery units (VRUs).
According to the consultation paper, the current method, which uses results from routine six-month independent testing of established VRUs to establish the vapor to liquid conversion rate to calculate excise refunds on returned vapors, is burdensome for businesses.
The paper says the establishment of a single rate is expected to result in:
- Regulatory savings for businesses through the reduction in frequency of testing of VRUs and the resources businesses dedicate to claiming the refund relative to the amount of the refunds received
- Removal of the need for regular testing of VRU units for the purpose of claiming an excise refund on returned petroleum, though there may be other non-tax reasons why some testing may still be required
The paper covers the proposed average recovery rate and a proposed simplified formula in which it is employed to calculate the volume of returned duty paid petroleum recovered through a VRU.
The consultation closes on 3 October 2023.
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