Although the Biodiesel industry in Australia is still in its infancy stage, the industry have received increasing attention for the past few years.  

In Austrialia, the Government has implemented several initiatives to support the Biodiesel development. One of them is the new Biodiesel taxation arrangements which include the following: -

• Excise on Biodiesel (pure and blended) at the same rate as diesel from 18 Spetember 2003.
• Subsidy of 38.143 cents / litre to Biodiesel producers and importers until 30 June 2008.
• Adjust the net effective excise rate for Biodiesel in a series of 5 even annual steps (1 July 2008 to 1 July 1012)
• New excise rate that will apply to Biodiesel from 1 July 2012.
• Biodiesel to be listed as an eligible alternative fuel for on-road grants under the Energy Grants Credit Scheme.

Furthermore, the Federal Minister and Agriculture Minister of Australia have also announced a 2-year study with an AUS$ 5 million budget to address market barriers to the increased us of biofuels in transport. 

Currently, there are several supportive institutions in the country for biofuels, namely, the Bioenergy Australia, Biodiesel Association of Austrialia, EA-Environment Austrialia and Australia Biofuels Association. While at its infancy stage, extensive R&D are done via institutions such as the Australian Institute of Energy, CSIRO Australia and etc.

The Feedstock for biodiesel production in Australia mostly originates from used frying oil and animal fats. However, as various oilseeds are able to be grown in Australia, a multi-feedstock blend of oils such as rapeseed oil, subflower oil and soybean oil feasible.