Natural Gas Vehicles | Goverment Grants

The Federal Government is providing two types of grants for transport operators. By encouraging light, medium and heavy commercial vehicles and public transport buses to convert to CNG, these grants aim to reduce greenhouse emissions and significantly improve urban air quality.

1. The Diesel and Alternative Fuels Grant Scheme (DAFGS)

The DAFGS provides on-road CNG fuel rebates. If your vehicle is eligible for this grant you can receive a fuel rebate of 12.132c/m3 for each m3 of CNG purchased. Eligibility depends on the Gross Vehicle Mass (GVM) of your vehicle and also where you operate. This grant scheme is administered by the Australian Taxation Office (ATO).

Specials for Buses

Buses over 4.5TGVM receive special dispensation under the DAFGS, and can claim the rebate for CNG only.

For more information

  • Pick up a 'TAX Facts' brochure from the ATO
  • Call the Diesel Fuel Infoline on 1300 657 162 or
  • Visit the ATO website at ATO Tax Reform

2. The Alternative Fuel Conversion Program (AFCP)

This program provides ongoing assistance for converting buses and trucks to CNG. To be eligible your vehicle must be over 3.5T GVM. This grant scheme is administered by the Australian Greenhouse Office.

The AFCP provides funding of up to 50% of the investment cost of purchasing a new NGV or converting a current diesel vehicle to CNG. Funding can be granted for any part of the vehicle purchase or conversion.

For more information

  • Call the AFCP Manager at the Australian Greenhouse Office on (02) 6274 1421 or
  • Visit their website at Green House Transport