Explanatory Statement
Excise Act 1901
Excise By-Law (Amendment) 2009 (No. 1)
General Outline
- This Explanatory Statement is provided in accordance with section 26 of the Legislative Instruments Act 2003.
- Item 21 of the Schedule to the Excise Tariff Act 1921 imposes duties of excise for the production of condensate which are equivalent to the duties of excise on new oil and includes “exempt offshore condensate” which is condensate included in “exempt offshore oil and condensate” produced from a prescribed “exempt offshore field”.
- Excise By-Law No. 114 (By-Law No.114) prescribes exempt offshore fields for the purposes of paragraph (a) of the definition of “exempt offshore field” in subsection 3(1) of the Excise Tariff Act 1921.
- During a review of By-Law No. 114, the following amending by-laws pertaining to this by-law were identified as containing amending instructions that were misdescribed and therefore not all amendments were incorporated:
Title | Date of FRLI registration | Date of
commencement |
Excise By-Law (Amendment)1997 No.2 | 5 Nov 1997 (see Gazette 1997, No. GN44) (F2006B11678) | 5 Nov 1997 |
Excise By-Law (Amendment) 1998 No. 1 | 18 Feb 1998 (see Gazette 1998, No. GN7) (F2006B11681) | 18 Feb 1998 |
Excise By-Law (Amendment) 2001 No. 1 | 20 Apr 2001 (see Gazette 2001, No. S 145) (F2007B00016) | 30 Apr 2001 |
Excise By-Law (Amendment) 2008 (No. 1) | 27 Nov 2008 (F2008L04519) | 2 Oct 2008 |
5. Excise By-Law (Amendment) 2009 (No. 1) therefore contains the necessary amendments to be made to By-Law No. 114 that will rectify those misdescribed amendments and give this by-law a modern drafting style.
6. The amendment to By-Law No. 114 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 can be construed as a power to amend an instrument).
Date of effect
7. This by-law takes effect on and from the date of registration on the Federal Register of Legislative Instruments.
Note: Subsection 56(1) of the Legislative Instruments Act 2003 provides that in certain circumstances, the requirement for a legislative instrument to be published in the Gazette is taken to be satisfied if the legislative instrument is registered on the Federal Register of Legislative Instruments. Subsection 56(1) of the Legislative Instruments Act 2003 applies to this by-law.
Effect of the instrument
8. This by-law makes the necessary amendments to correct errors identified in, and give a modern drafting style to, By-Law No. 114.
9. Compliance cost impact. No change/low. An assessment of the compliance cost impact indicates the impact will be minor for both implementation and on-going compliance costs. The change to the instrument is of a minor, routine nature.
Impact of the instrument
10. The amendments made by this by-law will not alter the existing arrangements provided by By-Law No. 114.
Consultation
11. Section 18 of the Legislative Instruments Act 2003 provides for circumstances where consultation may not be necessary or appropriate. As this by-law simply rectifies previous misdescribed amendments of the by-law and does not alter existing arrangements, no consultation in its development was undertaken.
Timothy Dyce
Deputy Commissioner and Delegate for Commissioner of Taxation (CEO)
30 July 2009
Related Rulings/Determinations:
Subject references:
Condensate
Excise
Excise Tariff
Excise By-Law
Exempt offshore oil
Exempt offshore field
Exempt offshore oil and condensate
New oil
Legislative references:
Acts Interpretation Act 1901 subsection 33(3)
Excise Act 1901 section 165
Excise Tariff Act 1921 subsection 3(1)
Excise Tariff Act 1921, the Schedule, item 21
Legislative Instruments Act 2003 section 18
Legislative Instruments Act 2003 section 26
Legislative Instruments Act 2003 subsection 56(1)
Excise By-law No. 114
Other references:
Overview
The Excise By-Law (Amendment) 2009 (No. 1) was enacted to rectify errors in previously misdescribed amendments to Excise By-Law No. 114, which prescribes exempt offshore fields for the purposes of the Excise Tariff Act 1921. This legislative instrument was introduced to ensure that the amendments made to By-Law No. 114 were accurately incorporated and to update its drafting style to modern standards. The Excise Act 1901 provides the authority for these amendments under section 165, and the changes were implemented under subsection 33(3) of the Acts Interpretation Act 1901. The by-law was developed under the oversight of the Legislative Instruments Act 2003, and it took effect from the date of its registration on the Federal Register of Legislative Instruments. The amendments do not alter the existing arrangements provided by By-Law No. 114 and are expected to have a minor, routine impact on compliance costs.
Scope and Application
The Excise By-Law (Amendment) 2009 (No. 1) pertains to the correction of misdescribed amendments and the modernisation of Excise By-Law No. 114, which in turn prescribes exempt offshore fields under the Excise Tariff Act 1921. This legislative instrument applies to entities involved in the production of condensate, specifically those producing "exempt offshore condensate" from "exempt offshore fields" as defined in the Excise Tariff Act 1921. The amendment does not introduce new obligations or alter existing arrangements but rectifies previous errors in the by-law, ensuring compliance with the Excise Act 1901. The by-law has a Commonwealth jurisdictional reach and applies nationally across Australia. As the amendment merely corrects previous errors and does not introduce new obligations, it does not include specific exclusions, exemptions, or thresholds. The by-law came into effect from the date of its registration on the Federal Register of Legislative Instruments, with the requirement for publication in the Gazette being satisfied by its registration under the Legislative Instruments Act 2003.
Key Provisions
The Excise By-Law (Amendment) 2009 (No. 1) amends Excise By-Law No. 114, which was made under the Excise Tariff Act 1921. This amendment rectifies errors in previously misdescribed instructions and modernises the drafting of the by-law. Excise By-Law No. 114 prescribes exempt offshore fields for the purposes of the Excise Tariff Act 1921. The Excise By-Law (Amendment) 2009 (No. 1) ensures that all necessary amendments to By-Law No. 114 are incorporated and presented in a modern drafting style.
The amendment introduces no new obligations on the parties or entities governed by Excise By-Law No. 114, but it clarifies and corrects the field definitions for compliance purposes. The by-law specifies which offshore fields are exempt from excise duties, ensuring that the correct fields are identified and subject to the appropriate tax regime. The impact of this amendment is minimal, as it primarily serves to correct errors and modernise the language without altering the existing tax arrangements.
There are no specific offences, penalties, or consequences outlined in the Excise By-Law (Amendment) 2009 (No. 1) itself. However, the Excise Act 1901 and Excise Tariff Act 1921 provide for penalties for non-compliance with excise duties. Under the Excise Act 1901, penalties for non-compliance may include fines and imprisonment. The Excise Tariff Act 1921 imposes duties on the production of certain goods, including condensate. Failure to comply with these duties, as defined and corrected by the amendment, may result in penalties as stipulated by the Excise Act 1901. These penalties are intended to enforce compliance with the excise regime and ensure that the correct duties are applied to the specified goods.
In conclusion, the Excise By-Law (Amendment) 2009 (No. 1) serves to correct previous errors and modernise the drafting of Excise By-Law No. 114, which defines exempt offshore fields under the Excise Tariff Act 1921. This amendment imposes no new obligations but ensures clarity and accuracy in the application of excise duties, thereby maintaining compliance with the existing tax framework. Any breaches of the excise duties resulting from non-compliance with the corrected definitions may attract penalties under the Excise Act 1901, including fines and imprisonment.