Some individuals who have applied and been rejected for a grant under the Government’s Liquefied Petroleum Gas (LPG) Vehicle Scheme could actually be eligible for funding and should consider reapplying, an Ombudsman investigation has found.

The LPG scheme aims to encourage people to buy a new LPG vehicle or to convert an existing petrol or diesel vehicle to LPG by offering them a grant to do so. The amount of funding is determined by the date on which a vehicle was bought or converted to LPG.

However, Acting Commonwealth Ombudsman Mr Ron Brent today said that frequent changes to the Ministerial guidelines that the Department of Innovation, Industry, Science and Research (DIISR) uses to administer the LPG scheme gave them the character of a ‘work in progress’.

‘It is an ongoing concern in my office that funding schemes like this one, based on executive guidelines rather than parliamentary legislation, are often developed with less detailed planning and drafting, resulting in significant changes after they are implemented,’ Mr Brent said.

‘It is of further concern that these ‘executive schemes’ generally result in the same bureaucrats who draft the guidelines or eligibility criteria being responsible for providing advice on their administration, especially since there is usually limited opportunity for external review of decisions.’

Between the introduction of the LPG scheme in August 2006 and the Ombudsman’s decision to investigate in June 2009, six different versions of the guidelines had been implemented. The Ombudsman had received 231 complaints.

‘It is clear from our investigation that some parts of the guidelines require further review to ensure that they accurately reflect the intent of the LPG scheme,’ Mr Brent said.

‘For example, under the current guidelines it is almost impossible for suitably qualified self-installers, or people who previously had an LPG system installed at no cost through a training organisation like a TAFE, to be considered eligible for the grant. This is despite publicly available information indicating that self-installation is not a bar to entitlement.’

The acting Ombudsman recommended to DIISR that it:

DIISR has accepted only the second of these recommendations.

Download the report: 05|2010 — Department of Innovation, Industry, Science and Research: Administration of the Liquefied Petroleum Gas (LPG) vehicle scheme, April 2010

Media contact: Media 02 6276 3759

Date of release: 15 April 2010

Skip to main content
    0 results available.
      0 results available.
      language assistant menu topper outer language assistant menu topper inner

      Read documents in your language

      If you need more translations, please contact us via: 1300 362 072 or ombudsman@ombudsman.gov.au

      15 Apr 2010: Rejected LPG grant applicants should try again

      Some individuals who have applied and been rejected for a grant under the Government’s Liquefied Petroleum Gas (LPG) Vehicle Scheme could actually be eligible for funding and should consider reapplying, an Ombudsman investigation has found.

      The LPG scheme aims to encourage people to buy a new LPG vehicle or to convert an existing petrol or diesel vehicle to LPG by offering them a grant to do so. The amount of funding is determined by the date on which a vehicle was bought or converted to LPG.

      However, Acting Commonwealth Ombudsman Mr Ron Brent today said that frequent changes to the Ministerial guidelines that the Department of Innovation, Industry, Science and Research (DIISR) uses to administer the LPG scheme gave them the character of a ‘work in progress’.

      ‘It is an ongoing concern in my office that funding schemes like this one, based on executive guidelines rather than parliamentary legislation, are often developed with less detailed planning and drafting, resulting in significant changes after they are implemented,’ Mr Brent said.

      ‘It is of further concern that these ‘executive schemes’ generally result in the same bureaucrats who draft the guidelines or eligibility criteria being responsible for providing advice on their administration, especially since there is usually limited opportunity for external review of decisions.’

      Between the introduction of the LPG scheme in August 2006 and the Ombudsman’s decision to investigate in June 2009, six different versions of the guidelines had been implemented. The Ombudsman had received 231 complaints.

      ‘It is clear from our investigation that some parts of the guidelines require further review to ensure that they accurately reflect the intent of the LPG scheme,’ Mr Brent said.

      ‘For example, under the current guidelines it is almost impossible for suitably qualified self-installers, or people who previously had an LPG system installed at no cost through a training organisation like a TAFE, to be considered eligible for the grant. This is despite publicly available information indicating that self-installation is not a bar to entitlement.’

      The acting Ombudsman recommended to DIISR that it:

      • identify applicants refused the grant because they had not transferred registration into their name before converting a vehicle, and advise them they can reapply
      • publicise the changed rules and the fact that previously unsuccessful applicants can reapply for the grant more than once within 12 months of vehicle conversion
      • review the requirement that an applicant be the registered owner of a vehicle on the day of application, where transfer of registration occurred after purchase and conversion of the vehicle to LPG
      • review the evidence required to prove that a vehicle has been converted to LPG.

      DIISR has accepted only the second of these recommendations.

      Download the report: 05|2010 — Department of Innovation, Industry, Science and Research: Administration of the Liquefied Petroleum Gas (LPG) vehicle scheme, April 2010

      Media contact: Media 02 6276 3759

      Date of release: 15 April 2010