Clean Energy (Excise Tariff Legislation Amendment) Act 2011

Administered by Department of the Treasury

Legislation au C2011A00156 In force Act

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Clean Energy (Excise Tariff Legislation Amendment) Act 2011

 

No. 156, 2011

 

 

 

 

 

An Act to amend excise tariff legislation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Aircraft fuel

Excise Tariff Act 1921

Schedule 2—Compressed natural gas

Excise Act 1901

Excise Tariff Act 1921

Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011

 

 

 

Clean Energy (Excise Tariff Legislation Amendment) Act 2011

No. 156, 2011

 

 

 

An Act to amend excise tariff legislation, and for related purposes

[Assented to 4 December 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Clean Energy (Excise Tariff Legislation Amendment) Act 2011.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

4 December 2011

2.  Schedule 1

1 July 2012.

However, the provision(s) do not commence at all if section 3 of the Clean Energy Act 2011 does not commence on or before 1 July 2012.

1 July 2012

3.  Schedule 2

Immediately after the commencement of Part 2 of Schedule 1 to the Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011.

However, the provision(s) do not commence at all if section 3 of the Clean Energy Act 2011 does not commence on or before 1 July 2012.

1 July 2012

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Aircraft fuel

 

Excise Tariff Act 1921

1  Subsection 3(1)

Insert:

average carbon unit auction price for a substitution day mentioned in section 6FA, 6FB or 6H means the amount that:

 (a) is worked out under section 196 of the Clean Energy Act 2011 taking account of auctions conducted in the 6 months ending at the end of:

 (i) the last May before the substitution day, if it is 1 July (in 2015 or a later year); or

 (ii) the last November before the substitution day, if it is 1 January (in 2016 or a later year); and

 (b) is the first amount that is worked out in that way for those 6 months and published under that section.

2  After section 6E

Insert:

6FA  Changes in rate of duty on gasoline for use as fuel in aircraft

 (1) This Act has effect as if, on each day (the substitution day) that is one of the following days, the rate (the replacement rate) of duty worked out under subsection (2) for the substitution day were substituted for the rate of duty in subitem 10.6 of the Schedule:

 (a) 1 July in 2013 and each later year;

 (b) 1 January in 2016 and each later year.

Replacement rate

 (2) The replacement rate is the sum of:

 (a) $0.03556 per litre; and

 (b) the rate (the carbon component rate) worked out for the substitution day using the table.

 

Carbon component rate

 

Substitution day

Carbon component rate

1

1 July 2013

$0.05313 per litre

2

1 July 2014

$0.05588 per litre

3

1 July in 2015 or a later year or 1 January in 2016 or a later year

The amount that is:

(a) worked out for the substitution day using the formula in subsection (3); and

(b) rounded to 5 decimal places (rounding up if the sixth decimal place is 5 or more);

per litre

 (3) The formula is:

Note: Average carbon unit auction price is defined in subsection 3(1).

Application of replacement rate

 (4) The replacement rate applies to gasoline that is entered for home consumption on or after the substitution day (but before the next substitution day) and is for use as fuel in aircraft.

6FB  Changes in rate of duty on kerosene for use as fuel in aircraft

 (1) This Act has effect as if, on each day (the substitution day) that is one of the following days, the rate (the replacement rate) of duty worked out under subsection (2) for the substitution day were substituted for the rate of duty in subitem 10.17 of the Schedule:

 (a) 1 July in 2013 and each later year;

 (b) 1 January in 2016 and each later year.

Replacement rate

 (2) The replacement rate is the sum of:

 (a) $0.03556 per litre; and

 (b) the rate (the carbon component rate) worked out for the substitution day using the table.

 

Carbon component rate

 

Substitution day

Carbon component rate

1

1 July 2013

$0.06279 a litre

2

1 July 2014

$0.06604 a litre

3

1 July in 2015 or a later year or 1 January in 2016 or a later year

The amount that is:

(a) worked out for the substitution day using the formula in subsection (3); and

(b) rounded to 5 decimal places (rounding up if the sixth decimal place is 5 or more);

per litre

 (3) The formula is:

Note: Average carbon unit auction price is defined in subsection 3(1).

Application of replacement rate

 (4) The replacement rate applies to kerosene that is entered for home consumption on or after the substitution day (but before the next substitution day) and is for use as fuel in aircraft.

6FC  Publication of replacement rates for aircraft fuel

 (1) The CEO must, on or as soon as practicable after each substitution day mentioned in sections 6FA and 6FB, publish for the information of the public a notice in the Gazette setting out:

 (a) each replacement rate mentioned in those sections for that day; and

 (b) the goods to which each replacement rate applies.

 (2) The CEO must ensure that a copy of a notice under subsection (1) is available on the website of the Australian Taxation Office.

3  Schedule (cell at table subitem 10.6, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.08616 per litre

4  Schedule (cell at table subitem 10.17, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.09536 per litre


Schedule 2—Compressed natural gas

 

Excise Act 1901

1  Section 77HA

Repeal the section, substitute:

77HA  Compressed natural gas that is exempt from excise duty

  Compressed natural gas is exempt from excise duty if the gas was compressed other than in the course of carrying on an enterprise (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999).

Excise Tariff Act 1921

2  Subsection 3(1)

Insert:

carbon‑rated compressed natural gas means compressed natural gas that:

 (a) was compressed for use other than as a fuel for a motor vehicle; or

 (b) was compressed for use as a fuel for a motor vehicle that:

 (i) is designed merely to move goods with a forklift and is for use primarily off public roads; or

 (ii) is of a kind prescribed by the regulations for the purposes of this subparagraph.

3  At the end of subsection 5(1)

Add:

Note: Sections 6A, 6FA, 6FB and 6H effectively change certain rates of duty that appear on the face of the Schedule.

4  After section 6G

Insert:

6H  Changes in rate of duty on carbon‑rated compressed natural gas

 (1) This Act has effect as if, on each day (the substitution day) that is one of the following days, the rate (the replacement rate) of duty worked out under subsection (2) for the substitution day were substituted for the rate of duty in subitem 10.19D of the Schedule:

 (a) 1 July in 2013 and each later year;

 (b) 1 January in 2016 and each later year.

Replacement rate

 (2) The replacement rate for the substitution day is the rate worked out using the table.

 

Replacement rate

 

Substitution day

Rate of duty

1

1 July 2013

$0.07004 per kilogram

2

1 July 2014

$0.07366 per kilogram

3

1 July in 2015 or a later year or 1 January in 2016 or a later year

The amount that is:

(a) worked out for the period using the formula in subsection (3); and

(b) rounded to 5 decimal places (rounding up if the sixth decimal place is 5 or more);

per kilogram

 (3) The formula is:

Note: Average carbon unit auction price is defined in subsection 3(1).

Application of replacement rate

 (4) The replacement rate applies to carbon‑rated compressed natural gas that is entered for home consumption on or after the substitution day (but before the next substitution day).

Publication of replacement rate

 (5) The CEO must, on or as soon as practicable after the substitution day, publish for the information of the public a notice in the Gazette setting out:

 (a) the replacement rate; and

 (b) the goods to which the replacement rate applies.

 (6) The CEO must ensure that a copy of a notice under subsection (5) is available on the website of the Australian Taxation Office.

5  Schedule (after the heading)

Insert:

Note 1: See section 5.

Note 2: Sections 6A, 6FA, 6FB and 6H effectively change certain rates of duty that appear on the face of this Schedule, especially in items 1, 2, 3 and 5 and subitems 10.6, 10.17 and 10.19D.

6  Schedule (table heading)

Omit “duties”, substitute “duties (subject to sections 6A, 6FA, 6FB and 6H)”.

7  Schedule (cell at table subitem 10.19C, column headed “Description of goods”)

After “other than”, insert “carbon‑rated compressed natural gas and”.

8  Schedule (after table subitem 10.19C)

Insert:

 

10.19D

Carbon‑rated compressed natural gas, other than compressed natural gas exempted from excise duty by section 77HA of the Excise Act 1901

$0.0667 per kilogram

Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011

9  Item 9 of Schedule 1 (new table subitem 10.19C)

After “other than”, insert “carbon‑rated compressed natural gas and”.

10  Item 10 of Schedule 1 (new table subitem 10.19C)

After “other than”, insert “carbon‑rated compressed natural gas and”.

11  Item 11 of Schedule 1 (new table subitem 10.19C)

After “other than”, insert “carbon‑rated compressed natural gas and”.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 September 2011

Senate on 12 October 2011]

(173/11)

 

Overview

The Clean Energy (Excise Tariff Legislation Amendment) Act 2011 was enacted by the Parliament of Australia to amend excise tariff legislation and address the gap in the taxation of alternative fuels. The Act introduces amendments to the Excise Tariff Act 1921 and Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011, primarily focusing on the taxation of aircraft fuel and compressed natural gas. The policy objective is to adjust the excise tariffs on these fuels in a manner that reflects their carbon content, thereby incentivising the use of cleaner energy sources. The Act came into force on various dates, with some provisions commencing upon Royal Assent on 4 December 2011, and others on 1 July 2012, contingent on the commencement of certain sections of the Clean Energy Act 2011. The amendments include the introduction of a carbon component in the excise rates for aircraft fuel and the exemption of certain compressed natural gas from excise duty. The Clean Energy (Excise Tariff Legislation Amendment) Act 2011 provides for the calculation of new excise rates based on the average carbon unit auction price, which is determined by the Clean Energy Act 2011. The Act mandates the Chief Executive Officer of the Australian Taxation Office to publish new rates in the Gazette and on the ATO website. These changes aim to align the taxation of alternative fuels with the broader policy goal of reducing greenhouse gas emissions and promoting clean energy use.

Scope and Application

The Clean Energy (Excise Tariff Legislation Amendment) Act 2011 applies to the Excise Tariff Act 1921 and the Excise Act 1901, amending the excise tariffs on certain fuels to reflect a carbon pricing mechanism. Specifically, the Act modifies the rates of excise duty on gasoline and kerosene used as fuel in aircraft, and on carbon-rated compressed natural gas used as a fuel. The amendments are effective from specified dates in 2013, 2014, and 2015/2016, contingent on the commencement of relevant sections of the Clean Energy Act 2011. The Act also mandates the publication of new duty rates by the Commissioner of Taxation. Compressed natural gas that is compressed for use other than as a fuel for a motor vehicle is exempt from excise duty, except where it is compressed for use as a fuel for a motor vehicle primarily used off public roads or as prescribed in regulations. The Act's amendments extend to the Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011, affecting the rates of duty on specified goods. The amendments apply across the Commonwealth of Australia, impacting entities and individuals who are liable to pay excise on the specified fuels.

Key Provisions

The Clean Energy (Excise Tariff Legislation Amendment) Act 2011 (Act) makes several amendments to excise tariff legislation, specifically targeting the taxation of certain fuels. Sections 1 to 3 of the Act and unspecified provisions came into effect on 4 December 2011, the day the Act received Royal Assent. Schedule 1, concerning aircraft fuel, commenced on 1 July 2012, provided that section 3 of the Clean Energy Act 2011 also commenced on or before 1 July 2012. Schedule 2, concerning compressed natural gas, came into effect immediately after the commencement of Part 2 of Schedule 1 to the Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011, with the same condition regarding the commencement of section 3 of the Clean Energy Act 2011. The Act amends the Excise Tariff Act 1921 and the Excise Act 1901, introducing new definitions and rates for excise duties on aircraft fuel and carbon-rated compressed natural gas. The Act imposes specific obligations on the Commissioner of the Australian Taxation Office (CEO). For aircraft fuel, the CEO must publish a notice in the Gazette and on the Australian Taxation Office's website detailing the new rates of duty applicable to gasoline and kerosene used as fuel in aircraft. These notices must be published on or as soon as practicable after each substitution day specified in sections 6FA and 6FB of the Act. For carbon-rated compressed natural gas, the CEO is required to publish a notice in the Gazette and on the Australian Taxation Office's website setting out the replacement rate of duty and the goods to which it applies. This notice must be published on or as soon as practicable after each substitution day mentioned in section 6H of the Act. The Act does not explicitly outline offences, penalties, or civil and criminal consequences for breach within its text. However, given the nature of the amendments and the context of Australian legislative practice, breaches of these obligations could potentially result in administrative penalties or legal actions under the broader tax and administrative frameworks. Specifically, failure to comply with the requirements to publish notices in the Gazette and on the Australian Taxation Office's website could be considered non-compliance with statutory obligations, leading to potential administrative or legal consequences. Further details on penalties would need to be sought from relevant administrative and tax laws.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.