Explanatory Statement
Excise Act 1901
Excise By-Law (Amendment) 2006 (No. 1)
General Outline
- This Explanatory Statement is provided in accordance with section 26 of the Legislative Instruments Act 2003.
- Excise By-Law (Amendment) 2006 (No. 1) is required due to amendments to the Excise legislation effected by Excise Laws Amendment (Fuel Tax Reform and Other Measures) Act 2006, Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006 and Excise Amendment Regulations 2006 (No. 3).
- The amendments are the result of the Review of the Schedule to the Excise Tariff Act 1921 (the Review) initiated by Treasury on 2 June 2005 with the release of an industry discussion paper and a targeted consultation process. The principal objects of the Review were to streamline the Schedule to the Excise Tariff Act 1921 (the Excise tariff) and make it more user-friendly, make excise law clearer and less complex, and improve the integrity of the excise system.
- The classification system for goods under the revised Excise tariff has been simplified from a 5-tier alpha-numeric system to a 2-tier numeric system. Consequently all goods subject to the Excise tariff have new tariff item numbers.
- Excise By-Law No. 75 is part of the legislative scheme in relation to stabilised crude petroleum oil and makes explicit reference to tariff items. This by-law amendment is therefore a necessary amendment consequential to the Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006.
- The amendment is made under section 165 of the Excise Act 1901 (under subsection 33(3) of the Acts Interpretation Act 1901 the power to make an instrument includes the power to amend an instrument).
Date of effect
7. The by-law is to commence on 1 July 2006.
Effect of the instrument:
8. This instrument ensures that the treatment of stabilised crude petroleum oil subject to sub-subitem 17(A)(1) of the Excise tariff is maintained.
9. There is no change in the treatment of stabilised crude petroleum oil under the revised Excise tariff. Tariff sub-subitem 17(A)(1) is replaced by new subitem 20.1. Tariff subitems 17(A) and 17(B) are replaced by new items 20 and 21, respectively.
10. By-Law No. 75 is amended accordingly.
Impact of the instrument
11. This instrument maintains the Excise treatment of persons currently subject to By-Law No. 75.
Consultation
14. On 1 June 2006 the Tax Office initiated a 2-week public consultation process on the legislative instruments arising from the Review, with the Assistant Treasurer approving the consultation prior to the related legislation being passed by Parliament.
15. The instruments and explanatory statements were published on the ATO website www.ato.gov.au in the form of drafts for consultation. The instrument, together with this explanatory statement, was included in that process.
Commissioner of Taxation
[30 June 2006]
Previous draft:
1 June 2006
Related Rulings/Determinations:
Excise By-Law (Revocation) 2006 (No. 1)
Subject references:
Excise
Excise tariff
Excise by-laws
Stabilised crude petroleum oil
Legislative references:
Acts Interpretation Act 1901 subsection 33(3)
Excise Act 1901 section 165
Excise Tariff Act 1921, the Schedule, item 17(A) (to 30 June 2006)
Excise Tariff Act 1921, the Schedule, item 17(A)(1) (to 30 June 2006)
Excise Tariff Act 1921, the Schedule, item 17(B) (to 30 June 2006)
Excise Tariff Act 1921, the Schedule, items 20 (from 30 June 2006)
Excise Tariff Act 1921, the Schedule, items 21 (from 30 June 2006)
Excise Tariff Act 1921, the Schedule, subitem 20.1 (from 30 June 2006)
Excise Laws Amendment (Fuel Tax Reform and Other Measures) Act 2006
Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006
Excise Regulations Amendment 2006 (No. )
Excise By-Law No. 75
Other references:
Review of the Schedule to the Excise Tariff Act: industry discussion paper, Treasury, 2 June 2005
ATO references
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