There are also a number of various grants and incentive schemes involving tax credits and rebates that generally apply to businesses or industries that rely heavily on the use of fuels, such as transport and aviation.
[8] The second phase of the Australian Fuel Tax Credits Scheme came into effect on 1 July 2008.
The changes benefited businesses that do not run large vehicle fleets but consume large amounts of fuel in business processes (such as mining, manufacturing, construction, plant operations) became eligible for a fuel tax credit.
Several states used to levy fuel franchise fees until 1997, when the High Court of Australia ruled in Ha v New South Wales that a licence fee based on the value of tobacco was unconstitutional, as it was an excise tax that only the Commonwealth can levy.
In consequence, the federal government introduced a fuel excise tax and gave the revenue to the states.
The subsidy reflected the lower franchise fee Queensland charged compared to other states prior to 1997.