Customs Amendment Regulations 2000 (No. 4) 2000 No. 141
EXPLANATORY STATEMENT
STATUTORY RULES 2000 NO. 141
Issued by authority of the Minister for Justice and Customs
Customs Act 1901
Customs Amendment Regulations 2000 (No. 4)
Section 270 of the Customs Act 1901 (the Act) provides that the Governor-General may make regulations prescribing matters which by that Act are required or permitted to be prescribed.
The purpose of the Regulations is to amend the Customs Regulations 1926 to prescribe fuels to be included within the definition of "diesel fuel" under the expanded Diesel Fuel Rebate Scheme (DFRS) and to allow DFRS applicants to prove their identity by providing an Australian Business Number (ABN).
Item 1 of Schedule 1 to the Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Act 1999 inserted into subsection 4(1) of the Act a definition of diesel fuel, which will commence on 1 July 2000. Under that definition "diesel fuel" will include any other like fuel of a kind that is prescribed.
The Regulations will prescribe a number of fuels for the purposes of the definition of "diesel fuel" to extend the diesel fuel rebate to fuel oil and all fuels paying the same rate as diesel fuel except gasoline and certain products suitable for use as gasoline substitutes such as coal tar and coke oven distillates (Schedule 1, item 1).
The DFRS provides for a rebate to be payable to a person who purchases diesel fuel for certain off-road uses. The rebate is intended to compensate the end user of the fuel for the excise duty or customs duty incorporated into the price of the fuel.
As part of its tax reform measures, the Government is extending the rebate from diesel fuel to "like fuels".
Rates of duty are set by the Excise Tariff for petroleum products manufactured in Australia and the Customs Tariff for imported petroleum products. Duty rates for petroleum products vary according to intended end use. Use of petroleum products as fuel in an internal combustion engine attracts a higher rate of excise (currently about 43 cents per litre) than their use as fuel otherwise than in an internal combustion engine (currently about 7 cents per litre).
The Regulations will extend the rebate to all fuels paying the same rate of duty as diesel fuel (paragraph IB(I)(a)) (apart from the exceptions specified above). These fuels have similar characteristics to diesel fuel. This means that the DFRS will be extended to fuels capable of being used in diesel engines.
Although most light fuel oil and all heavy fuel oil attracts a lower rate of duty (about 7 cents per litre), the Regulations will include these fuels in the extended DFRS because they are used as marine fuels (paragraphs 1 B(1)(b) and (c)). Marine transport is being added as a new eligible category under the DFRS from 1 July 2000 and this extension would have had little effect if light and heavy fuel oil were not brought within the scope of the DFRS.
The A New Tax System (Australian Business Number) Act 1999 introduced the ABN. The object of that Act is to establish a system for registering businesses and issuing them with unique identifying numbers so that they can identify themselves reliably in their dealings with the Australian Government. The Regulations also provide for DFRS application to be able to prove their identity by providing an ABN (Schedule 1, items 2, 4 and 6).
This will be an optional alternative to the current proof-of-identity requirements, which will otherwise remain unchanged. The condition for accepting an ABN as proof of identity will be that the address and bank account details are the same as those in the ABN register.
The Regulations also make minor consequential amendments needed as a result of inserting two new paragraphs into the Regulations (Schedule 1, items 3 and 5).
The Regulations commence on 1 July 2000.
Overview
The Customs Amendment Regulations 2000 (No. 4) were enacted to amend the Customs Regulations 1996 by adding specific fuels to the definition of "diesel fuel" under the expanded Diesel Fuel Rebate Scheme (DFRS) and to allow applicants to prove their identity using an Australian Business Number (ABN). This regulation was issued by the Minister for Justice and Customs and is intended to align with the expanded definition of diesel fuel introduced by the Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Act 1999. The primary objective of these amendments is to extend the rebate from diesel fuel to "like fuels", thereby compensating end users of these fuels for the excise duty or customs duty included in their prices. Additionally, the inclusion of the ABN as a proof-of-identity option aims to simplify the application process for the DFRS by providing an alternative to the existing identity verification requirements.
Scope and Application
The Customs Amendment Regulations 2000 (No. 4) apply to entities and individuals engaged in the purchase and use of fuels, specifically those who are eligible for the expanded Diesel Fuel Rebate Scheme (DFRS). This legislation primarily concerns those involved in the off-road use of diesel fuel and similar fuels, as well as businesses registered for an Australian Business Number (ABN). Geographically, these regulations operate under the Commonwealth jurisdiction and align with the definitions and provisions set out in the Customs Act 1901. The regulations do not apply to fuels intended for use in gasoline engines or certain substitutes such as coal tar and coke oven distillates. The scope of the Regulations is further extended to include marine fuels by virtue of their inclusion in the expanded DFRS, while maintaining their distinct lower duty rate. Additionally, the Regulations provide an alternative method for eligible applicants to prove their identity using an ABN, aligning with the requirements of the A New Tax System (Australian Business Number) Act 1999.
Key Provisions
The Customs Amendment Regulations 2000 (No. 4) (the Regulations) fundamentally alter the Customs Regulations 1926 to expand the definition of "diesel fuel" under the Diesel Fuel Rebate Scheme (DFRS) (Schedule 1, items 1 and 3). This expansion is achieved by including additional types of fuels, such as fuel oil, that are taxed at the same rate as diesel fuel, except for gasoline and certain gasoline substitutes like coal tar and coke oven distillates (Schedule 1, item 1). This amendment ensures that the rebate scheme now covers a broader range of fuels used in internal combustion engines, aligning with the government's tax reform measures. The inclusion of marine fuels, which are taxed at a lower rate, is particularly significant as marine transport becomes a new eligible category under the DFRS (Schedule 1, items 1B(1)(b) and (c)).
Under the Customs Act 1901, the Regulations impose certain obligations on parties involved in the DFRS. Specifically, these parties must now adhere to the expanded definition of "diesel fuel" and ensure that any fuels qualifying under this definition are appropriately documented and reported. The Regulations also necessitate that applicants for the DFRS provide an Australian Business Number (ABN) as an optional form of identity verification, provided that the address and bank account details match those in the ABN register (Schedule 1, items 2, 4, and 6). This optional method complements the existing proof-of-identity requirements, which remain in effect.
The Regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance within the text provided. However, the overarching framework of the Customs Act 1901 and related statutes would apply. Any breaches of the expanded DFRS or failure to comply with the identity verification requirements could potentially lead to administrative actions, fines, or other penalties as prescribed by the relevant legislation. The precise penalties would depend on the nature and severity of the breach, as well as any additional regulations or guidelines issued by the relevant authorities.