Eliminate Excise on HVO100

The Federal Government currently applies a 50.8-cent-per-litre tax on all mineral diesel, biodiesel, and renewable diesel sold in Australia.

With its environmental objectives in mind, however, the Federal Government provides for the excise on biodiesel to be claimed by way of a tax credit, in proportion to the amount blended with mineral diesel. For example, with a fuel blend of 70% mineral diesel and 30% biodiesel, a tax credit can be secured on the 30% that is biodiesel, saving some 50.8 cents per litre.

As of July 2026, the tax credit is not available for renewable diesel, such as HVO100, despite being produced from the same renewable feedstock as biodiesel. Renewable diesel is not only made from the same vegetable and animal matter as biodiesel, but it also offers several benefits over biodiesel, including:

• Biodiesel must be blended with mineral diesel, whereas HVO100 is a drop-in fuel that can be blended or used neat, delivering superior emissions savings.

• HVO100 more substantially reduces Nox than biodiesel, and as such has a greater impact on the reduction of CO2 equivalents

• Biodiesel generally has poorer cold flow properties than HVO100 renewable diesel, which performs better in cold weather, comparable to or even better than mineral diesel.

Given that the tax credits on biodiesel are designed to encourage emissions reductions, it is undoubtedly an anomaly that the tax credits available on biodiesel are not similarly available on renewable diesel. GreenTECH Fuel calls on the Federal Government to offer the same tax credits on renewable diesel, including HVO100, that are available on biodiesel.