“The Fuel Tax Bill, passed by the Senate today will extend more than $800 million in extra fuel tax credits to business across Australia,” Leader of the Nationals in the Senate, Senator Ron Boswell said today. “Over time all fuel used off-road in business will be eligible for a tax rebate as well as fuel used in heating, electricity generation and other uses not connected with transport,” he said. “Primary producers, fisherman, forest industries and mining industries will all benefit from this extension in the types of fuel eligible for tax credits. “By the end of the transition period, rural producers will be able to claim on farm use of both petrol and diesel, which are used in pumps, motorbikes, farm vehicles and generators. “This measure alone is a major breakthrough for rural producers and is estimated to cost Government $860 million/year by 2012. Under the act the effective application of fuel tax will be limited to:- • Business use of fuel in on-road  applications in motor vehicles with a gross vehicle mass of 4.5 tonnes or less; • Business use on road in motor vehicles with a gross vehicle mass of more than 4.5 tonnes but only to the extent of the road-user charge; • For private use on-road in motor vehicles and in certain off-road applications; and • Aviation fuels. Senator Boswell said the Nationals had ensured changes were made to the legislation to implement a two year transition period for the administration of the rebates. “The Government is introducing a system of applying for rebates through Business Activity Statements. Existing claimants will have 2 years to adjust cash flows to accommodate this change,” Senator Boswell said. “The Bill also introduces a responsibility on large rebate claimants to participate in the Greenhouse Challenge Plus Program which will result in a greater focus on more efficient vehicles with lower emissions. “Senator Boswell said the Bill introduced measures reducing rebate eligibility that presented challenges to the emerging biofuels industry, particularly biodiesel. “The impact of these measures will continue to be monitored by the Nationals to ascertain the impact they have on biofuel production,” Senator Boswell said. ENDS - Media Contact 02 6277 3244