Excise Amendment Regulations 2002 (No. 1)

Overview

The Excise Amendment Regulations 2002 (No. 1) were enacted to address a specific issue with the existing legislation regarding excise on blended petroleum products. The Excise Act 1901 was amended to provide exemptions for certain fuel additives from the blending provisions. This was achieved by amending Excise Regulation 176 to specifically list several fuel additives that would otherwise attract excise. The problem addressed by these Regulations was that certain performance additives sold in bulk quantities were being subject to excise due to the current legislation, despite their intended use and pricing making them unsuitable for the excise evasion market. The policy objective was to exempt these genuine additives from the blending provisions when mixed with duty-paid fuel, ensuring that only the appropriate products are subject to excise. The Regulations were issued by the Minister for Revenue and Assistant Treasurer and will commence on gazettal.

Scope and Application

The Excise Amendment Regulations 2002 (No. 1) pertain to the Excise Act 1901 and apply to specific fuel additives by amending Excise Regulation 176 to exempt certain products from the blending provisions. This amendment specifically addresses the concerns of industry representatives who sought to avoid excise on fuel additives sold in bulk quantities. The affected entities include manufacturers and suppliers of the listed additives: Dipetane, Wynn's EDT Enviro Diesel Treatment, Pro-Ma PT5 Plus Concentrated Petrol Treatment, Pro-Ma DT5 Plus Concentrated Diesel Treatment, and Cougar Oils Turbojet Multifunctional Fuel Treatment. The regulation exempts these additives when they are blended with duty-paid fuel, provided they are used to enhance engine performance or assist in maintenance. The geographic and jurisdictional reach of these regulations is nationwide, as they are made under the authority of the Commonwealth. The amendments will apply from the date of gazette, extending the existing framework to accommodate the sale of these additives in larger packages without incurring additional excise liabilities.

Key Provisions

The Excise Amendment Regulations 2002 (No. 1) amends the Excise Regulation 176 (section 164 of the Excise Act 1901) to provide an exemption from the blending provisions for certain fuel additives. This exemption is intended for additives that enhance the performance of an internal combustion engine or assist in its maintenance. These include Dipetane, Wynn's EDT Enviro Diesel Treatment, Pro-Ma PT5 Plus Concentrated Petrol Treatment, Pro-Ma DT5 Plus Concentrated Diesel Treatment, and Cougar Oils Turbojet Multifunctional Fuel Treatment. By specifically listing these products, the amendment ensures they are exempt from the payment of excise once duty has been paid on the clean petroleum product with which they are blended (section 77J). These regulations impose obligations on the entities manufacturing and selling these listed fuel additives. They must ensure that these additives are only used in compliance with the specified exemption, meaning they cannot be sold as standalone products that could be used to evade excise. Additionally, these entities must adhere to the packaging regulations, ensuring the products are sold in quantities that do not trigger the blending provisions for excise. The amendments focus on products sold in packages greater than 10 litres, which were found to be the threshold for attracting excise under the current legislation. Failure to comply with these regulations can result in significant legal consequences. The Act does not specify exact penalties for non-compliance in the provided text, but generally, breaches of excise regulations can lead to fines and other civil or criminal penalties. The severity of these penalties can depend on the nature and extent of the breach, with potential maximum penalties typically outlined in the Act itself. It is crucial for entities to ensure their products and practices align with the amended regulations to avoid any adverse legal outcomes.