Bunker excise update

02 Dec 2024 / Australia

From 1 January 2025, a new remission circumstance will be made available for excise-equivalent goods duty that is payable on imported bunker fuel and collected by the Australian Border Force (ABF). The measure permits a remission for excise-equivalent goods duty that must currently be paid on imported bunker fuel.

Currently Bunker Excise is charged in the below scenarios at a rate of $0.506 AUD per litre:

  • Importing a vessel.
  • Receiving bunkers which will be consumed during a domestic voyage.
  • Bunkers already on board and consumed during a domestic voyage.

From 1 January 2025, Bunker Excise will no longer be charged on the above previously charged scenarios:

Bunker Excise will still be payable on imported bunker fuel if all of the below requirements are met. These are:

1. If the vessel is not powered by a fuel type classified in the Customs Regulations schedule 1 (Standard Marine Fuels are listed). Schedule 1 refers to a specific list of eligible fuel types that are approved for the purposes of excise. Only those fuels included in this list can be considered under the excise regulations.

2. While the ships fuel being consumed during the voyage is exempt, fuel being carried as cargo is not eligible for remission.

3. Vessel is engaged in a business or a commercial activity. i.e., would not apply to pleasure yachts etc.

4. The vessel must have gross tonnage of above 400.

5. The ship is engaged in a Domestic Voyage. A domestic voyage is a voyage between 2 Australian ports, solely for the purpose of transporting domestic goods.

Overseas ships on domestic voyages

An overseas ship is on a domestic voyage when the sole purpose of a leg is either to:

• load or unload domestic cargo

• re-position the ship to load or unload domestic cargo for transport to an Australian port.

A continuing international voyage is temporarily interrupted by short or long-term disconnections and permanently ceased if a ship is imported.

While Bunker Excise is no longer applicable, there is no change to GST. Therefor GST will still be charged when importing a vessel and when receiving bunkers which will be consumed during a domestic voyage.

For further details and updates, as well as information about operations in Australia, contact GAC Australia at [email protected]

If quoting any content from Hot Port News, please cite GAC Hot Port News as the source.