Excise Regulations 1925

Overview

The Excise Regulations 1925, as amended, are subsidiary legislation made under the Excise Act 1901 by the Governor-General in Council. These regulations provide detailed rules to support the implementation of the Excise Act 1901. The Act itself is a Commonwealth statute that imposes excise duties on certain goods manufactured or produced in Australia and imported into Australia. The Excise Regulations 1925 set out procedures for the payment of excise duties, the removal of excisable goods from factories, and the control of excisable goods. They also detail circumstances in which refunds, rebates, or remissions of excise duty may be allowed, provide rules for drawback of excise duty on exported goods, and outline the conditions for the operation of duty-free shops, among other things. The regulations have been amended numerous times since their initial enactment to adapt to changes in the law and to address emerging issues in the administration of excise duties.

Scope and Application

The Excise Regulations 1925, as amended, apply to the Commonwealth of Australia and cover a range of subjects related to excise duty, including payment, removal of excisable goods, tobacco, fuel, drawback, duty-free shops, samples, ship’s stores, aircraft’s stores, deposits, and miscellaneous provisions. These regulations are made under the Excise Act 1901 and provide detailed rules and requirements for the administration of excise duty. The regulations apply to various entities, such as breweries, tobacco manufacturers, fuel suppliers, and duty-free shop proprietors, as well as to specific goods and transactions. Certain exclusions and exemptions apply, such as for eligible breweries and certain uses of tobacco. The application of the regulations may be extended or restricted through subordinate instruments, such as approvals and permissions for specific activities. The regulations have undergone numerous amendments over the years, with the most recent amendment being the Excise Amendment Regulation 2013 (No. 1). The endnotes of this compilation provide information on the history, application, saving, and transitional provisions of the repealed provisions, as well as details on uncommenced amendments, modifications, and misdescribed amendments, if any.

Key Provisions

• The Excise Regulations 1925, as compiled on 25 July 2014, include several key provisions that govern the payment of excise duty, removal of excisable goods, and the management of excise control. Regulation 15 specifies that certain goods, including stabilised crude petroleum oil, condensate, liquefied natural gas, and LPG, may be delivered for home consumption without entry if permission is granted. Regulation 33 allows Australian tobacco leaf to be delivered for approved purposes, such as medical, scientific, horticultural, or agricultural uses, or destroyed with CEO approval. Regulation 49AAA mandates that suppliers of LPG must include a notice stating "Not to be used, or supplied, for transport use. Penalties apply" on the first page of the tax invoice provided to the purchaser. Regulation 49AAB outlines circumstances where this notice is not required, such as when LPG is supplied in a container of 210 kilograms or less or to a residential premises not for business purposes. Regulation 49AAC permits the conversion of LPG and compressed natural gas measurements for determining duty liability, with LPG measured in kilograms convertible to litres at a rate of 1 kilogram to 1.885 litres, and compressed natural gas measured in megajoules convertible to kilograms at a rate of 1 megajoule to 0.01893 kilograms.
• The Act and these Regulations impose several obligations on the parties involved. For instance, Regulation 15 requires those delivering certain goods for home consumption to submit monthly returns to the Collector detailing the goods delivered. Regulation 50 imposes a duty on eligible breweries to sell beer directly from their manufacturing premises. Regulation 52 mandates that an application for a remission, rebate, or refund of excise duty must be submitted in writing, signed by the applicant, and include the nature and particulars of the claim. Regulation 52AAA specifies that a 60% refund of excise duty may be allowed for beer manufactured in an eligible brewery if certain conditions are met. Regulation 52D provides that the amount of remission, rebate, or refund of duty for LPG is determined by a formula involving the quantity of LPG used or delivered, expressed in litres, during the specified period.
• The Excise Regulations 1925 also specify penalties and consequences for breaches. For example, Regulation 78 outlines the conditions under which drawback of excise duty may be paid on the exportation of goods, stipulating that drawback is not payable if the goods have been used in Australia otherwise than for inspection or exhibition, among other conditions. Regulation 52D sets out the formula for calculating the amount of remission, rebate, or refund of duty for LPG, which is determined by the quantity of LPG used or delivered, expressed in litres, during the specified period. Regulation 76 stipulates that drawback of excise duty may be paid on the exportation of excisable goods, subject to certain exceptions, such as goods used in the manufacture of goods or subjected to a process or treatment in the Commonwealth. Regulation 78A specifies that drawback of excise duty is not payable unless certain conditions are met, such as the owner giving a notice of intention to claim drawback to the Collector and complying with any related notices. Regulation 52D also includes a provision for the conversion of measurements of LPG and compressed natural gas for the purpose of determining a person's liability to pay duty, where LPG measured in kilograms may be converted to litres, and compressed natural gas measured in megajoules may be converted to kilograms. Regulation 50A details the circumstances under which refunds, rebates, and remissions are made, such as when goods deteriorate or are damaged while under the CEO's control, or when excise duty has been paid due to a manifest error of fact or patent misconception of the law. Regulation 55A provides that a refund of excise duty shall not be allowed unless the tobacco products have lost their identity, which may occur if they are destroyed or mixed with other tobacco in a factory. Regulation 56 states that a refund of excise duty shall not be allowed unless the beer is returned to the brewery within 90 days of removal, or destroyed within 90 days with the Collector's permission.

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Area of Law

Taxation Law

Instrument

Regulation

Concepts

Definitions & Interpretation

Repeal & Amendment

Enforcement Powers

Compliance Obligations

Licensing & Registration

Reporting & Disclosure Obligations