Eliminate Excise on HVO100

The Federal Government currently applies a 51.6-cent-per-litre excise tax on all mineral diesel, biodiesel, and renewable diesel sold in Australia.

To help ensure achievement of its emissions targets, however, the Federal Government allows the excise on biodiesel to be claimed as a tax credit, in proportion to the amount blended with mineral diesel. Biodiesel is used as a blended product with mineral diesel, most commonly in B5 or B7 formulations (5% & 7%). However, blends of B20 (20%) or greater, such as B100 (pure biodiesel), may require the user to check with vehicle manufacturers regarding compatibility and warranty implications, or consider engine modifications, as they may not be compatible with all diesel engines.

As of July 2026, the tax credit for biodiesel is not available for renewable diesel, such as HVO100, even though it is produced from the same renewable feedstock as biodiesel. HVO100 renewable diesel is a ‘drop-in fuel’ that can be used neat in all engine brands and in all environments without modification. Fully compatible with current diesel infrastructure. Renewable diesel is much easier to use, as it can be used as a standalone fuel without needing to clean the tank after using mineral diesel. Most importantly, HVO100 is at least 95% carbon neutral, contributing significantly to the reduction of reportable scope 1 and 3 emissions.

Not only is HVO100 at least 95% carbon-neutral, but it also:

• ​Replaces standard diesel fuel, requiring no changes to the vehicle.

• Replaces standard diesel fuel with no changes to maintenance requirements.

• Delivers superior cold start operability and storage stability.

• Provides a reduction of over 95% in NGERs measured CO2 emissions.

• Reduces local pollution emissions, including diesel particulates like NOx.

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

For more information, call Steve Wilkinson on 0481 055 383 or email steve@greentechfuel.com.au 

Our website address is - www.greentechfuel.com.au