Bass Strait Freight Adjustment Trust Fund Amendment Act 1987
No. 153 of 1987
An Act to amend the Bass Strait Freight Adjustment Trust Fund Act 1984
[Assented to 26 December 1987]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title etc.
1. (1) This Act may be cited as the Bass Strait Freight Adjustment Trust Fund Amendment Act 1987.
(2) In this Act, “Principal Act” means the Bass Strait Freight Adjustment Trust Fund Act 19841.
Commencement
2. (1) Section 1 and this section shall come into operation on the day on which this Act receives the Royal Assent.
(2) Section 5 and subsection 8 (1) shall come into operation, or shall be deemed to have come into operation, as the case requires, on 1 December 1987.
(3) The remaining provisions of this Act shall come into operation on 1 January 1988.
Interpretation
3. Section 3 of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of “base period” and substituting the following definition:
“ ‘base period’, in relation to a month, means:
(a) in the case of a month ending before 1 July 1984—the period of 30 months that ended on 30 June 1983;
(b) in the case of a month ending after 1 July 1984 and before 1 March 1985—the period of 30 months that ended 6 months before the last determination day in or before the month;
(c) in the case of any other month ending before 1 January 1988—the period of 6 months ending at the end of the month; or
(d) in the case of a month ending after 1 January 1988— the period commencing on 1 July 1987 and ending at the end of the month;”; and
(b) by inserting in subsection (1) the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):
“ ‘allocated prescribed oil’, in relation to a producer, means prescribed oil that the producer was, under the Scheme, required to sell in Australia in accordance with the Scheme before 1 January 1988;
‘balance of allocated prescribed oil’, in relation to a tied producer, means the difference between:
(a) the volume of prescribed oil that is allocated prescribed oil in relation to the producer; and
(b) the total volume of prescribed oil that the producer sold in accordance with the Scheme in Australia before 1 January 1988;
‘Scheme’ means the scheme known as the Crude Oil Allocation Scheme;
‘tied producer’ means a producer that, immediately before 1 January 1988, had not sold in Australia in accordance with the Scheme the volume of prescribed oil that is allocated prescribed oil in relation to the producer.”.
Money to be paid into Freight Adjustment Fund etc.
4. Section 5 of the Principal Act is amended by adding at the end the following subsection:
“(2) Amounts equal to the amounts of adjustment levy that are to be deemed to have been paid to the Commonwealth under section 5a of the Levy Collection Act shall be deemed to have been paid into the Freight Adjustment Fund.”.
Application of Freight Adjustment Fund
5. Section 6 of the Principal Act is amended by adding at the end the following subsection:
“(3) Notwithstanding subsection (2) and sections 7 and 8, no payment shall be made, at the end of December 1987, out of the Freight Adjustment Fund.”.
6. Sections 6 and 7 of the Principal Act are repealed and the following sections are substituted:
Application of Freight Adjustment Fund
“6. (1) At the end of January 1988 and at the end of each subsequent month during which amounts equal to amounts of adjustment levy (other than arrears of adjustment levy) received by the Commonwealth are paid into the Freight Adjustment Fund under section 5, the following persons, namely:
(a) producers that:
(i) were at the commencement of that month tied producers;
(ii) have each sold in Australia during that month, in accordance with the same terms and conditions as were applicable before 1 January 1988 under the Scheme in respect of the sale of allocated prescribed oil (in this subparagraph called ‘the agreed terms and conditions’):
(a) if the month is January 1988—a volume of prescribed oil that is equal to the balance of allocated prescribed oil in relation to the producer; or
(b) in any other case—a volume of prescribed oil that, together with the volume of prescribed oil sold in accordance with the agreed terms and conditions by the producer in Australia after 31 December 1987 and before the commencement of that month, is equal to the balance of allocated prescribed oil in relation to the producer; and
(iii) have also sold in Australia during that month prescribed oil other than the prescribed oil sold in accordance with subparagraph (ii);
(b) producers, other than producers to which subparagraph (a) (ii) applies, that have sold prescribed oil in Australia during that month;
(c) producers that have exported prescribed oil during that month;
(d) prescribed refiners that have exported during the month (in this paragraph called the ‘relevant month’) immediately preceding that month:
(i) if the relevant month is December 1987—allocated prescribed oil; or
(ii) in any other case—prescribed oil sold to them by a tied producer in accordance with subparagraph 6 (1) (a) (ii);
are entitled to receive from that Fund at the end of that month payments ascertained in accordance with section 7.
“(2) In addition to the persons referred to in subsection (1), the following persons, namely, producers that, during the month of December 1987:
(a) have exported prescribed oil;
(b) were, under the Scheme, entitled to retain, and retained, prescribed oil for their own use or for disposal by them outside the Scheme;
(c) were, under the Scheme, entitled to sell, and sold, in Australia outside the Scheme prescribed oil, not being prescribed oil referred to in paragraph (b);
are entitled to receive from the Freight Adjustment Fund at the end of January 1988 payments ascertained in accordance with section 7.
“(3) Where:
(a) at any time during a month that ends after the commencement of this section, the rate of adjustment levy is a nil amount per kilolitre of relevant oil; and
(b) amounts equal to amounts of adjustment levy (other than arrears of adjustment levy) received by the Commonwealth have been paid into the Freight Adjustment Fund during that month;
persons that are relevant refiners in relation to the base period for that month are entitled to receive from the Freight Adjustment Fund at the end of that month payments ascertained in accordance with section 8.
“(4) Where, during a month that ends after the commencement of this section, amounts equal to arrears of adjustment levy received by the Commonwealth are paid into the Freight Adjustment Fund under section 5, such amount standing to the credit of that Fund at the end of that month as is equal to the total of the amounts paid into that Fund during that month that relate to adjustment levy that became payable by producers under section 5 of the Levy Collection Act during a particular month shall be paid out of that Fund in accordance with subsection (5).
“(5) The amount payable out of the Freight Adjustment Fund at the end of a month under subsection (4) in relation to arrears of adjustment levy that became payable by producers under section 5 of the Levy Collection
Act during a particular month (in this subsection called the ‘original month of payment’):
(a) shall be divided among those persons to whom that amount would have been payable if those arrears had been paid to the Commonwealth during the original month of payment; and
(b) shall be so divided in accordance with this Act as in force at the end of the original month of payment.
Amounts payable to producers and prescribed refiners
“7. The amount payable:
(a) to a producer or a prescribed refiner at the end of a particular month under subsection 6 (1); or
(b) to a producer at the end of January 1988 under subsection 6 (2); is an amount ascertained in accordance with the formula:
where:
K is:
(c) in the case of a producer referred to in paragraph 6 (1) (a)— the number of kilolitres of prescribed oil sold by the producer during that month other than prescribed oil sold in accordance with subparagraph 6 (1) (a) (ii);
(d) in the case of a producer referred to in paragraph 6 (1) (b)— the number of kilolitres of prescribed oil sold by the producer in Australia during that month;
(e) in the case of a producer referred to in paragraph 6 (1) (c)— the number of kilolitres of prescribed oil exported by the producer during that month;
(f) in the case of a prescribed refiner referred to in paragraph 6 (1) (d)—the number of kilolitres of prescribed oil exported by the refiner by virtue of which the refiner is entitled to payment under subsection 6 (1) at the end of that month; or
(g) in the case of a producer referred to in subsection 6 (2)— the number of kilolitres of prescribed oil exported, retained or sold by the producer by virtue of which the producer is entitled to payment under that subsection at the end of that month; and
L is the amount per kilolitre that is the rate of adjustment levy on the first day of that month.
Advances on account of payments out of Freight Adjustment Fund
“7a. (1) Where:
(a) prescribed oil is sold or exported by a producer after the commencement of this section; and
(b) because of the sale or export of that prescribed oil the producer will become entitled, at the end of a particular month, to receive payment of an amount under subsection 6 (1);
an advance on account of that amount may be made to the producer.
“(2) An advance to a producer on account of an amount that will become payable under subsection 6 (1) because of the sale or export of a certain volume of prescribed oil:
(a) is payable to the producer on the day on which adjustment levy is payable by the producer in respect of the volume of relevant oil that is to be taken, for the purposes of the Levy Collection Act, to correspond to that volume of prescribed oil; and
(b) shall be set off against the amount payable by the producer in respect of that adjustment levy.
“(3) Where an advance is made to a producer on account of an amount that will become payable under subsection 6 (1) because of the sale or export of prescribed oil, the Secretary to the Department or a person authorised by the Secretary for the purposes of this subsection shall give, and cause to be forwarded to the Comptroller-General of Customs, a certificate to that effect specifying the volume of that prescribed oil.”.
7. Section 8 of the Principal Act is repealed and the following section is substituted:
Amounts payable to relevant refiners
“8. Where a person is entitled under subsection 6 (3) to receive a payment from the Freight Adjustment Fund at the end of a month, the amount of that payment shall be ascertained in accordance with the formula:
where:
A is the percentage determined under paragraph 9 (1) (d) in respect of that person that applies to that month by virtue of subsection 9 (3b);
B is the amount standing to the credit of that Fund at the end of that month;
C is the sum of the amounts (if any) paid or payable out of that Fund under subsection 6 (1) or (2) at the end of that month; and
D is the sum of the amounts (if any) paid or payable out of that Fund under subsection 6 (4) at the end of that month.”.
Calculation of refiners’ percentage of Freight Adjustment Fund
8. (1) Section 9 of the Principal Act is amended:
(a) by inserting in subsection (2) “but subject to subsection (2a)” after “subsection (1)”; and
(b) by inserting after subsection (2) the following subsection:
“(2a) The Minister shall not make a determination under subsection (1) during December 1987.”.
(2) Section 9 of the Principal Act is amended:
(a) by omitting from paragraph (2) (d) “and”;
(b) by omitting paragraph (2) (e) and substituting the following paragraphs:
“(e) a day during each month after June 1985 and before January 1988;
(f) a day during January 1988; and
(g) such other day as the Minister determines.”;
(c) by omitting from subsection (3a) “that begins on or after 1 March 1985” and substituting “after February 1985 and before December 1987”; and
(d) by inserting after subsection (3a) the following subsection:
“(3b) Where the Minister makes a determination under paragraph (1) (d) on a day during a month that begins on or after 1 January 1988, that determination applies to that month and to each later month (if any) that ends before the next determination day.”.
NOTE
1. No. 24, 1984, as amended. For previous amendments, see No. 79, 1985; and No. 141, 1987.
[Minister’s second reading speech made in—
House of Representatives on 29 October 1987
Senate on 19 November 1987]