What is the Boosting Australia’s Diesel Storage Program?
The Boosting Australia’s Diesel Storage Program is part of the Government’s 10-year comprehensive fuel security package to increase Australia’s resilience to fuel supply disruptions, secure sovereign refining capability, and keep fuel prices low for consumers.
The objectives of the program are to:
- provide matched funding to industry to construct new diesel storage that will result in an estimated 780ML of additional diesel storage being kept onshore. This quantity is estimated to be required for industry to meet the proposed minimum stockholding obligation by 2024
- support job creation in local industries.
The intended outcomes of the program are to:
- support Australia’s fuel security through the creation of additional domestic storage capacity to hold diesel stocks whilst retaining sovereign refining capacity
- contribute to the Australian Government’s JobMaker Plan and COVID-19 economic recovery agenda.
The Australian Government has announced a total of $200 million over three years for the program from 2021-22 to 2023-24.
The minimum grant amount is $6 million and the maximum is $33.3 million.
To be eligible your project must:
- be a new project, which has not already commenced construction, aimed at increasing storage capacity of diesel fuel onshore in any Australian state and/or internal territory (above the storage capacity you expect to be available at 30 June 2021)
- have at least $12 million in eligible expenditure
- be designed to create no less than 20 megalitres in additional storage of diesel fuel at any individual site (projects may involve one or more sites across Australia).
Eligible activities may include the following:
- site preparation activities
- designing, buying, constructing, installing and/or commissioning of diesel fuel storage infrastructure including plant and equipment.
To be eligible you must:
- have an Australian Business Number (ABN)
- be non-tax-exempt
- be registered for the Goods and Services Tax (GST).
and be one of the following entities:
- an entity incorporated in Australia and a trading corporation, where your trading activities
- form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation; or
- are a substantial and not merely peripheral activity of the corporation
- an incorporated trustee on behalf of a trust
Joint applications are acceptable, provided you have a lead organisation who is the main driver of the project and is eligible to apply.
Applications close 22 February 2021.