On 8 May 2012, the Treasurer announced, as part of the Budget, that the Government has decided to mandate coverage of non‑transport liquefied petroleum gas (LPG) and non‑transport liquefied natural gas (LNG) by the carbon pricing mechanism from 1 July 2013. It will also mandate coverage of non‑transport compressed natural gas (CNG) by the carbon pricing mechanism from 1 July 2012. The decisions were made in response to consultation with industry. Currently, carbon pricing is applied to non-transport gaseous fuels by a range of mechanisms including: increases to excises, increases to customs duties and reductions to fuel tax credits. Coverage by the carbon pricing mechanism in place of these arrangements will reduce compliance costs and enable the gaseous fuels industry to better manage their carbon pricing obligations. A Regulation Impact Statement was prepared by the Department of Climate Change and Energy Efficiency and assessed as adequate by the Office of Best Practice Regulation.
