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Treasurer Continues LPG Conversion Rebate

May 15th, 2009
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VACC, the peak Automotive Industry body in Victoria, has welcomed the Rudd Government’s continued endorsement of Liquefied Petroleum Gas (LPG).

Treasurer Wayne Swan announced a rebate reduction in his Federal Budget, but VACC does not believe this will have a negative impact on the Industry.

“The current $2000 rebate continues for vehicles converted before June 30. As of July 1, it becomes $1750 per conversion and there will then be a series of further reductions until the rebate is $1000 per conversion from July 1, 2012,” Mr Purchase said.

“For privately owned new cars the $2,000 rebate for factory fitted LPG fuel systems will remain unchanged.

“We consider this to be good news. It means the conversion rebate, while reduced, will continue. It means $2000 is still available right now and the incentive will continue for motorists to convert vehicles to LPG.

“Given that Australia is in the grip of what the Treasurer described as ‘the worst of economic times’, he may have been tempted to target LPG conversions, reduce the rebate further or remove it completely.

“But the fact that he did not is a huge positive and an indicator that the Government values LPG as an alternative fuel.

“Australian LPG converters will be heartened by the news. They can now continue to trade with certainty, particularly in Victoria, which accounts for just over 50 percent of installations and has more than 600 registered LPG conversion businesses.

“Australia is virtually self sufficient in LPG with huge national reserves. There is an estimated 3 million tones of LPG produced by this country annually with supply not forecast to outstrip demand until at least 2030.

“Therefore, together with the Government’s commitment to the conversion rebate, LPG continues to remains a viable and attractive alternative option for those who wish to convert to a cheaper alternative fuel,” Mr Purchase said.

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