Fuel tax changes 'threaten biodiesel industry'

here are concerns from biodiesel producers that changes to the fuel tax system will threaten the viability of the industry.

The changes come into effect this month and mean that farmers and miners can no longer receive rebates on biodiesel.

The president of the Biodiesel Association, Adrian Lake, says some biodiesel projects are being reviewed because of the changes.

"Under these laws a lot of the certainty is certainly gone and that has a big impact on whether people will commit the resources that are required to develop the crops and the infrastructure around it to supply to biodiesel," he said.

Mr Lake says regional areas will suffer the most under the changes.

He is calling on the Federal Government to consider the effects.

"We'd like to see the Government evaluate the impact of these changes to the tax laws and see what they can do to really stimulate the industry and also create the regional benefits for Australia, the regional cropping and also production of biofuels."

The Assistant Treasurer Peter Dutton said in a statement the new laws create a fairer system and correct a loophole that gave some biodiesel producers an unfair advantage.

[Source: ABC]