- The Australian Treasury is seeking consultation on a single average benchmark recovery rate for businesses to calculate and claim excise refunds on returned duty-paid petroleum recovered through vapor recovery units (VRUs).
- The current method of using routine six-month independent testing of established VRUs to establish the vapor to liquid conversion rate is burdensome for businesses.
- The establishment of a single rate is expected to result in regulatory savings for businesses and reduce the frequency of testing and resources dedicated to claiming refunds.
- Regular testing of VRU units for claiming excise refunds may no longer be necessary, but some testing may still be required for non-tax reasons.
- The consultation covers the proposed average recovery rate and a simplified formula for calculating the volume of returned duty paid petroleum recovered through a VRU.
- The consultation period closes on 3 October 2023.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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