Government Grant for LPG Conversions

fuel station image by AGITA LEIMANE from

Liquefied petroleum gas (LPG), also known as propane, is a clean-burning fuel that can be used to power vehicles. The main advantages of converting a vehicle to an LPG fuelling system include reducing air pollutants and saving money on gasoline.

LPG as vehicle fuel is popular around the world and is gaining momentum in the United States. The Australian government offers the only federal grant program for converting vehicles to LPG use, known as LPG Vehicle Scheme.


Individuals are eligible to apply for an LPG Vehicle Scheme grant if they have converted a registered vehicle to LPG or bought a new LPG-fitted vehicle. Consumers are not eligible if they have received a conversion grant within the last three years, even if they have converted multiple vehicles. Applicants must also prove that they purchased the LPG vehicle or paid for the conversion. Finally, the vehicle must be 3.5 tons or less and registered as a private-use vehicle.

Funding Level

LPG Vehicle Scheme grants provide funding at different levels depending on when the conversion is completed. Grants range from £1,137 to £650, decreasing each year from 2010 to 2014, when the program is set to end. Consumers purchasing new LPG vehicles are eligible for £1,300. Applicants receive the full grant amount no matter what the LPG conversion cost.

How to Apply

LPG Vehicle Scheme grants must be applied for within one year of conversion of purchase of a LPG vehicle. Applicants can obtain the grant application from the AusIndustry hotline (see Resources) or at any Medicare office or Centrelink customer service centre. Applicants must complete the application fully and include copies of any requested supporting documents, such as driver's license, vehicle registration papers and proof of conversion.