{"id":"F2016L01518","name":"Fuel Tax (Fuel Blends) Determination 2016 (No.1)","slug":"fuel-tax-fuel-blends-determination-2016-no-1","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95162,"registerId":"commonwealth-F2016L01518-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Fuel Tax (Fuel Blends) Determination 2016 (No.1)","content":"Legislative Instrument\n\nFuel Tax (Fuel Blends) Determination 2016 (No.1)\n\nI, Deborah Jenkins, Acting Deputy Commissioner of Taxation, make this determination under under section 95-5 of the Fuel Tax Act 2006 (‘Fuel Tax Act’).\n\nDeborah Jenkins\n\nActing Deputy Commissioner of Taxation\n\nDated: 13/9/2016\n\nName of determination\n\n    This determination is the Fuel Tax (Fuel Blends) Determination 2016 (No.1).\n\nCommencement\n\n    2. This determination commences on the day after registration.\n\nRepeal of previous determination\n\n    3. Fuel Tax (Fuel blends) Determination 2006 (No.3) (the previous determination) - F2006L02798, registered on 24 August 2006, is repealed on commencement of this determination.\n\nDetermination\n\n4. This determination is a legislative instrument for the purposes of the Legislation Act 2003 (‘Legislation Act’).\n\n5. This determination applies to blends that are produced after commencement.\n\nObject\n\n6. Under section 95-5 of the Fuel Tax Act, the Commissioner of Taxation may determine that a blend of a fuel and another product does not constitute a fuel for the purposes of the Fuel Tax Act.\n\nWhere a blend is not a fuel\n\n    7. A blend of biodiesel classified to subitem 10.21 of the Schedule to the Excise Tariff Act 1921 containing a minimum concentration of:\n    (a) 5.0% by volume of surfactant; or\n    (b) 2.0% by volume oleic acid;\n    whether or not the blend contains other substances, is not a fuel for the purposes of the fuel tax law where the blend is not marketed or sold for use as fuel in an internal combustion engine.\n\n    8. A blend of a taxable fuel and another product or other products is not a fuel for the purposes of the fuel tax law where:\n    (a) the blend is not marketed or sold for use as fuel in an internal combustion engine and\n    (b) it can be demonstrated that the blend contains either:\n    (i) a product listed in the Schedule at a concentration equal to or greater than the specified minimum; or\n    (ii) more than one product listed in the Schedule and the total concentration of those products is equal to or exceeds 10% by volume,\n    whether or not the blend contains other substances.\n\nExample\n\nAn entity produces the following blends and does not market or sell them for use as fuel in an internal combustion engine:\n\n(1) 90% toluene with 10% v/v methyl ethyl ketone\n\n(2) 90% toluene with 8% v/v methyl ethyl ketone and 2% v/v butanol (Other alcohol)\n\n(3) 92% toluene with 4% v/v methyl ethyl ketone and 4% v/v butanol (Other alcohol)\n\nUnder this determination, blends (1) and (2) do not constitute fuel for the purposes of the fuel tax law; blend (3) is a fuel for those purposes.\n\nDefinitions\n\n    10. The following expressions are defined for the purposes of this determination:\n\nbiodiesel has the meaning given by subsection 3(1) of the Excise Tariff Act 1921;\n\nCAS registry number refers to the unique number allocated to the chemical substance in the registry of the Chemical Abstracts Service, a division of the American Chemical Society as they exist at the time of commencement of this determination;\n\ntaxable fuel means taxable fuel as defined in section 110-5 of the Fuel Tax Act but only if they are classified to subitem 10.25, 10.26, 10.27 or 10.28 of the Schedule to the Excise Tariff Act 1921;\n\nv/v means volume to volume.\n\nSchedule\n\n| Item | Product                                                             | CAS RegistryNumber | Minimum concentration% v/v |\n| ---- | ------------------------------------------------------------------- | ------------------ | -------------------------- |\n| 1    | Tertiary butyl alcohol                                              | 75-65-0            | 0.5                        |\n| 2    | Other alcohols (other than methanol, ethanol and isopropyl alcohol) | -                  | 10.0                       |\n| 3    | Ketones                                                             | -                  | 10.0                       |\n| 4    | Methyl tertiary butyl ether                                         | 1634-04-4          | 1.0                        |\n| 5    | Di-isopropyl ether                                                  | 108-20-3           | 1.0                        |\n| 6    | Other ethers                                                        | -                  | 10.0                       |\n| 7    | Esters                                                              | -                  | 10.0                       |\n| 8    | Surfactants                                                         |                    | 1.0                        |\n| 9    | Silicone Oils                                                       |                    | 2.0                        |\n| 10   | Oleic Acid                                                          | 112-80-1           | 2.0                        |\n| 11   | Water                                                               | -                  | 5.0                        |","sortOrder":0}],"analysis":{"summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"This determination only clarifies when a blend is not a fuel for fuel tax legislation; it does not amend the Act or impose new obligations."},"complexity_factors":["Requires cross-reference to specific subitems of the Excise Tariff Act 1921","Uses chemical nomenclature and CAS registry numbers","Application depends on both chemical concentration thresholds and marketing/use conditions"],"plain_english_summary":"This Commissioner’s determination says certain blends that contain taxable fuel components will not be treated as \"fuel\" for fuel tax purposes — so no fuel tax applies — provided they’re not marketed or sold for use in internal combustion engines and meet specified concentration thresholds for listed additives (e.g., certain alcohols, ketones, ethers, surfactants, water). It replaces the 2006 Determination and affects producers and sellers of solvent- or carrier-type blends who can avoid fuel tax when the blend genuinely isn’t intended for combustion."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument repeals the 2006 determination (cl 3) and replaces it with a new set of concentration thresholds and lists (ss 7–10 and Schedule), applying to blends produced after commencement (cl 5). Consequently the statutory coverage and practical tests for when a blend is excluded from fuel tax have been changed from the prior determination."},"complexity_factors":["Multiple numerical concentration thresholds across categories in the Schedule (varying from 0.5% to 10% v/v) increasing testing and formulation detail.","Different rules for biodiesel (s 7) and for taxable fuels generally (s 8), including an aggregate 10% v/v test when more than one listed product is present.","Requirement that the blend not be marketed or sold for use as fuel in an internal combustion engine (ss 7–8) creates evidentiary and compliance burdens and potential ambiguity about marketing intent.","Cross-reference to external classification in the Excise Tariff Act (definitions and taxable fuel limited to specific subitems), creating dependency on another statute for scope.","Use of undefined or broadly phrased categories (e.g. 'Other alcohols', 'Ketones', 'Esters', 'Surfactants') and some missing CAS numbers, increasing interpretive discretion for administrators and industry.","Commencement and repeal mechanics (cl 2–3) may create transitional questions for stocks produced before/after commencement.","Obligation to 'demonstrate' composition (s 8) implies record-keeping, testing and possible disputes about measurement methods and sampling."],"plain_english_summary":"This determination says certain mixtures of fuel and other chemicals are not treated as ‘fuel’ for fuel tax purposes if they meet specified component-concentration thresholds and are not marketed or sold for use in internal combustion engines. It repeals the 2006 determination and applies to blends produced after commencement.\n\nIt affects producers, blenders and fuel suppliers because qualifying blends avoid fuel tax treatment; the Commissioner must be able to be satisfied the blend meets the listed concentration rules and is not sold for engine use (see ss 7–8 and the Schedule)."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a straightforward replacement determination that maintains the same scope as its predecessor (Fuel Tax (Fuel blends) Determination 2006 (No.3)). It continues the established practice of specifying when fuel blends become non-taxable industrial products. The scope remains limited to defining fuel blend exemptions and has not expanded beyond this original purpose."},"complexity_factors":["Cross-references to three other Acts: Fuel Tax Act 2006, Excise Tariff Act 1921, and Legislation Act 2003","Technical chemical terminology requiring CAS registry numbers and specific concentration thresholds","Nested conditional logic in section 8 with multiple 'and/or' conditions (not marketed as fuel AND either single product at minimum OR multiple products totaling 10%)","11 defined chemical categories in the Schedule with varying specificity (some specific CAS numbers, some broad categories like 'Ketones' or 'Other ethers')","Two separate exemption pathways with different criteria (section 7 for biodiesel blends, section 8 for taxable fuel blends)","Volume-to-volume (v/v) measurement requirements requiring precise chemical analysis"],"plain_english_summary":"This is a tax rule made by the Australian Taxation Office that decides when a mixture containing fuel stops being treated as 'fuel' for tax purposes.\n\n**What it does:**\nNormally, when you mix fuel with other chemicals, it still counts as fuel and you have to pay fuel tax on it. But this determination creates exceptions where certain mixtures are **not** considered fuel, so no fuel tax applies.\n\n**Who it affects:**\nBusinesses that manufacture or sell blended products containing fuel—particularly chemical manufacturers, fuel blenders, and industrial solvent producers.\n\n**The two main exceptions:**\n\n1. **Biodiesel blends with cleaning agents:** If you mix biodiesel with at least 5% surfactant (a soap-like cleaning chemical) or 2% oleic acid (a fatty acid), and you don't sell it as engine fuel, it's not taxed as fuel.\n\n2. **Other fuel blends with specific chemicals:** If you blend regular taxable fuel with certain chemicals listed in the Schedule (like specific alcohols, ketones, ethers, or water) at minimum concentrations, AND you don't market it as engine fuel, it's not taxed as fuel.\n\n**The key test:** For the second exception, the blend must contain either:\n- One chemical from the Schedule at or above its minimum concentration, OR\n- Multiple Schedule chemicals that together make up 10% or more of the blend\n\n**Why it matters:**\nThis stops fuel tax from applying to industrial solvents and cleaning products that happen to contain fuel but are never used as fuel. Without this rule, manufacturers would pay fuel tax on products like paint thinners or degreasers that contain fuel components but are used for completely different purposes.\n\n**The Schedule lists specific chemicals and minimum amounts:**\nFor example, if your blend contains 10% or more of 'other alcohols' (not methanol or ethanol), or 10% ketones, or 5% water, it may qualify for the exemption."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1","history":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1/history","analysis":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1/analysis","conflicts":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1/conflicts","importantCases":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1/important-cases","documents":"/api/acts/fuel-tax-fuel-blends-determination-2016-no-1/documents"}}