Bass Strait Freight Adjustment Levy Amendment Act 1985

Overview

The Bass Strait Freight Adjustment Levy Amendment Act 1985 was enacted to amend the Bass Strait Freight Adjustment Levy Act 1984. This Act was introduced to address the need for adjustments in the freight levy rates for unstabilised crude petroleum oil produced in Bass Strait. Enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, the legislation seeks to correct and refine the levy rates in response to variations in the Coastal Freight Allowance, ensuring they accurately reflect the costs associated with transporting stabilised crude petroleum oil within Australia. The policy objective of this amendment is to provide a more precise and responsive mechanism for determining the freight adjustment levy, thereby maintaining fair and efficient pricing structures in the petroleum industry.

Scope and Application

The Bass Strait Freight Adjustment Levy Amendment Act 1985 amends the Bass Strait Freight Adjustment Levy Act 1984, impacting the rates of levy applied to unstabilized crude petroleum oil produced in Australia. The Act applies to entities involved in the production and transport of crude petroleum oil in Bass Strait, primarily focusing on the financial adjustments needed to account for variations in the Coastal Freight Allowance. The Act is a Commonwealth legislation, thereby exerting its influence across Australia, and is applicable to all entities engaged in the relevant industry within the national jurisdiction. The Act allows for the Minister to adjust the Coastal Freight Allowance, thus influencing the rate of levy, and specifies that such determinations are not to be considered Statutory Rules. While the Act itself sets out the primary provisions, it allows for further elaboration and adjustment through subordinate instruments, ensuring that the legislation can be adapted to changing economic and logistical circumstances.

Key Provisions

The Bass Strait Freight Adjustment Levy Amendment Act 1985 (Act) amends the Bass Strait Freight Adjustment Levy Act 1984 (Principal Act). This Act adjusts the rate of the adjustment levy applied to the production of unstabilized crude petroleum oil from Bass Strait. Section 1 establishes the title and citation of the Act, while section 2 details the commencement dates for different sections of the Act, with sections 1, 2 and 5 coming into effect upon receiving Royal Assent, and sections 3 and 6 deemed to have commenced on 1 January 1985, and section 4 on 1 March 1985. The key operative sections of this Act are sections 3, 4 and 5, which amend the rate of the levy as specified in section 6 of the Principal Act. Section 3 adjusts the rate from $1.26 to $1.39, effective from 1 January 1985, and section 4 further adjusts it to $1.96, effective from 1 March 1985. Section 5 repeals the former section 6 and substitutes a new section that defines the levy amount as 65% of the Coastal Freight Allowance, with the Minister having the authority to determine the Coastal Freight Allowance component of the Import Parity Price of Bass Strait stabilized crude petroleum oil. The Act imposes obligations on the Minister to determine the Coastal Freight Allowance, which is the basis for calculating the levy amount. The Minister must consider the cost of transporting stabilized crude petroleum oil by sea and pipeline within Australia, and may consider other relevant matters when making determinations under section 6(4). These determinations are subject to certain procedural requirements under the Acts Interpretation Act 1901, as referenced in section 6(6) of the Act. When the Minister makes a determination to alter the rate of adjustment levy, it will apply to unstabilized crude petroleum oil produced on or after the specified date in the notice, as outlined in section 6. Failure to comply with the provisions of this Act may result in civil or criminal consequences, depending on the nature of the breach. For instance, if a party fails to pay the correct levy amount as determined by the Minister, they may be subject to financial penalties or other enforcement actions. The exact penalties for breaches are not specified in the Act but would typically be determined by the relevant administering authority or through subsequent legislation. It is important for parties subject to this Act to ensure they understand and comply with their obligations to avoid any potential legal or financial repercussions.