Aviation Fuel Revenues (Special Appropriation) Act 1988 - Determination under section 3A(2) Setting the Statutory Rate, Determination under section 4(1A) Setting the Respective Share of the Civil Aviation Safety Authority's (CASA's) Payment (24/06/2010)

Overview

The Aviation Fuel Revenues (Special Appropriation) Act 1988 was enacted to address the need for a structured approach to the appropriation of revenues generated from aviation fuel, specifically aviation gasoline and aviation kerosene. This Act provides a framework for the relevant Minister to determine the statutory rate of appropriation for these fuels, ensuring a systematic allocation towards specific objectives. The policy objective behind the Act is to facilitate the appropriation of fuel revenues in a manner that supports particular areas of national interest, particularly those overseen by the Civil Aviation Safety Authority (CASA). The Minister for Infrastructure, Transport, Regional Development and Local Government has the authority to set the statutory rate and determine the share of payments to CASA. In the determination dated 24 June 2010 and effective from 1 July 2010, the statutory rate for both aviation gasoline and aviation kerosene was set at $0.03556 per litre, with CASA entitled to the entirety of the payments made under this appropriation.

Scope and Application

The Aviation Fuel Revenues (Special Appropriation) Act 1988 and the related determination set out specific provisions for the appropriation of revenues derived from aviation fuel, both aviation gasoline and aviation kerosene, at a statutory rate of $0.03556 per litre. This Act applies to the appropriation of revenue generated from the sale of aviation fuel in Australia, thus impacting entities involved in the aviation industry, including airlines and fuel suppliers. The Act is a Commonwealth instrument, meaning its jurisdictional reach is nationwide. The determination made by the Minister for Infrastructure, Transport, Regional Development and Local Government on 24 June 2010 and effective from 1 July 2010 specifies that the Civil Aviation Safety Authority (CASA) is entitled to the entirety of the payments generated from this appropriation. There are no exclusions, exemptions, or thresholds mentioned in the text, suggesting that the appropriation applies broadly within the specified parameters. The Act's application may be further extended or restricted through subordinate instruments as deemed necessary by the relevant Minister.

Key Provisions

The Aviation Fuel Revenues (Special Appropriation) Act 1988, as amended by the Determination under subsection 3A(2) and 4(1A) made by the Minister for Infrastructure, Transport, Regional Development and Local Government on 24 June 2010, outlines specific provisions regarding the appropriation of aviation fuel revenues and the allocation of payments to the Civil Aviation Safety Authority (CASA). Section 3A(2) of the Act, as clarified by Item 1 of the Determination, specifies that the statutory rate for the appropriation of aviation fuel revenues for both aviation gasoline and aviation kerosene is set at $0.03556 per litre. This rate is applicable to both types of aviation fuel and represents the amount of revenue that is to be appropriated for special purposes as defined in the Act. In relation to obligations, the Act, as determined, places a responsibility on the Minister to establish the statutory rate of appropriation and to ensure that the specified amount is deducted from the total revenue generated from aviation fuel sales. This is a critical function as it directly impacts the revenue available for other government purposes. Under the Act, as clarified by Item 2 of the Determination, CASA is entitled to the entirety of the payments derived from the appropriation of aviation fuel revenues. This allocation ensures that CASA, as the regulatory body overseeing civil aviation safety, receives the necessary funds to carry out its regulatory functions effectively. The Act also addresses potential consequences for non-compliance. While the specific offences, penalties, or civil/criminal consequences for breach are not detailed in the Determination, the Act generally implies that any failure to adhere to the statutory requirements for appropriation and allocation could result in legal repercussions. Such breaches may be subject to the relevant provisions of the primary Act or other applicable legislation, which could include fines or other penalties as determined by the courts. It is important for entities involved in the sale and taxation of aviation fuel to comply strictly with these provisions to avoid any legal issues.