Environmental and Social Taxes

• Reform of the taxation of fuels towards energy content based taxation (2010-11 Budget): The Government will provide more consistent tax treatment of fuels, by bringing liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) into the tax system over time, but with a 50 per cent discount that recognises the potential environmental and fuel security benefits of their use. [Consistent with recommendation 65 of the tax review.]
• Reform of the fringe benefits tax treatment of cars (2011-12 Budget): The Government has removed the unintended incentive for people to drive salary-sacrificed and employer-provided vehicles further than they need to in order to obtain a larger tax concession, by reforming the 'statutory formula' method for valuing car fringe benefits. [Consistent with recommendation 9(b) of the tax review.]
• Increase in the excise on tobacco products (April 2010): As part of its health reforms, the Government increased the excise on tobacco products by 25 per cent. [Consistent with recommendation 73 of the tax review.]