Excise Amendment Regulations 2000 (No. 2) 2000 No. 159
EXPLANATORY STATEMENT
STATUTORY RULES 2000 NO. 159
Issued by authority of the Assistant Treasurer
Excise Act 1901
Excise Amendment Regulations 2000 (No. 4)
Section 164 of the Excise Act provides that the Governor-General may make regulations prescribing matters which by that Act are required or permitted to be prescribed to give effect to the Act.
The purpose of the Regulations is to amend the Excise Regulations 1925 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 2 000. 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 2AA(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 use 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 2AA(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 applicants to be able to prove their identity by providing an ABN (Schedule 1, items 3. 5 and 7).
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 4 and 6). In addition Regulation 52A has been omitted as it is redundant (Schedule 1, item 2).
The Regulations commence on 1 July 2000.
Overview
The Excise Amendment Regulations 2000 (No. 2) were enacted to amend the Excise Regulations 1925 under the authority of the Assistant Treasurer, providing the necessary framework to implement the expanded Diesel Fuel Rebate Scheme (DFRS) as introduced by the Customs and Excise Amendment (Diesel Fuel Rebate Scheme) Act 1999. This regulation was introduced to address the need for a broader inclusion of fuels under the DFRS, specifically to extend the rebate to fuels that are similar to diesel fuel in terms of their rate of duty and usage characteristics. The policy objective behind these amendments is to ensure that the rebate compensates end users of such fuels for the excise duty incorporated into their prices, thereby providing a fair compensation across similar fuel types used in various applications including marine transport. The inclusion of the Australian Business Number (ABN) as an optional proof-of-identity for DFRS applicants further aims to streamline the application process by allowing businesses to use a unique identifier already established under the A New Tax System (Australian Business Number) Act 1999.
Scope and Application
The Excise Amendment Regulations 2000 (No. 2) pertain to the Excise Act 1901 and serve to amend the Excise Regulations 1925, specifically expanding the scope of the Diesel Fuel Rebate Scheme (DFRS). The Act applies to individuals and entities that purchase and use diesel fuel and similar fuels for off-road purposes in Australia. The expanded DFRS now includes fuel oil and all fuels that pay the same rate of duty as diesel fuel, with the exception of gasoline and certain gasoline substitutes. These regulations extend the rebate to include marine fuels, such as light and heavy fuel oil, as they are used in marine transport, a newly eligible category under the DFRS from 1 July 2000. Additionally, the Regulations allow DFRS applicants to prove their identity by providing an Australian Business Number (ABN), an optional alternative to the existing proof-of-identity requirements, provided that the address and bank account details match those in the ABN register. The Regulations also include minor amendments to account for the insertion of new provisions and the removal of redundant regulations, all of which are set to commence on 1 July 2000.
Key Provisions
The Excise Amendment Regulations 2000 (No. 2) (F2000B00167) primarily amend the Excise Regulations 1925 to expand the definition of "diesel fuel" under the Diesel Fuel Rebate Scheme (DFRS) (section 1). This expansion includes various fuels that are similar to diesel fuel in terms of characteristics and duty rates, with certain exceptions (section 1, Schedule 1, item 1). Specifically, the definition of "diesel fuel" now encompasses any fuel that is prescribed by the Regulations and pays the same rate of duty as diesel fuel, excluding gasoline and certain products suitable for use as gasoline substitutes such as coal tar and coke oven distillates (section 1, Schedule 1, item 1).
The Regulations impose several obligations and requirements on the parties and entities governed by them. Firstly, they mandate the inclusion of specific fuels within the expanded definition of "diesel fuel" to qualify for the DFRS. This means that fuels capable of use in diesel engines, and those paying the same rate of duty as diesel fuel, are eligible for the rebate (section 1, Schedule 1, item 1). Additionally, the Regulations require that DFRS applicants may now use an Australian Business Number (ABN) as an optional alternative to the current proof-of-identity requirements. For an ABN to be accepted, the address and bank account details must match those in the ABN register (section 1, Schedule 1, items 3, 5, and 7).
There are no specific offences, penalties, or consequences outlined in the text for breaching these regulations. However, the broader context of Australian legislation typically includes provisions for penalties in cases of non-compliance with tax laws. This could encompass fines or other civil and criminal penalties depending on the severity and intent behind the breach. The Excise Act 1901 and other related Acts and Regulations would need to be consulted for specific penalties, but they are not detailed in the provided text.