Explanatory Statement
Excise By-Law No. 114 (Amendment) (No. 1) 2022
General Outline of Instrument
- This instrument is made under section 165 of the Excise Act 1901.
- Excise By-Law No. 114 (the By-Law) 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 (Excise Tariff Act).
- This instrument amends the By-Law to add the Tidepole reservoir as a prescribed exempt offshore field.
- The instrument is a legislative instrument for the purposes of the Legislation Act 2003.
- Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Date of effect
6. This instrument commences on the day after it is registered on the Federal Register of Legislation.
Under section 12(2) of the Legislation Act 2003 this instrument does not adversely affect the rights or liabilities of any person other than the Commonwealth.
What is the effect of this instrument
7. This instrument amends the By-Law to prescribe the Tidepole reservoir in the Carnarvon Basin as an exempt offshore field for the purposes of paragraph (a) of the definition of ‘exempt offshore field’ in subsection 3(1) of the Excise Tariff Act 1921. This will not impact any exempt offshore fields that were already prescribed prior to the commencement of this instrument.
8. Compliance Cost Impact: Minor – There will be no additional regulatory impacts for both implementation and ongoing compliance costs from this Instrument. The legislative instrument is minor or machinery in nature.
Background
9. The Minister for Resources and Water recently determined that Tidepole reservoir is separate from an existing production area (the Rankin Trend). This instrument will ensure that an exemption from excise is provided on the first 4767.3 megalitres of production from the Tidepole reservoir.
Consultation
10. Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.
11. Targeted consultation was undertaken for a period of 2 weeks. Copies of the draft legislative instrument and explanatory statement were sent to the operator of the Tidepole reservoir for comment and feedback.
12. No comments were received.
Legislative references
Acts Interpretation Act 1901
Excise Act 1901
Excise Tariff Act 1921
Legislation Act 2003
Legislation (Exemptions and Other Matters) Regulation 2015.
Statement of compatibility with Human Rights
Table item 16 of section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015 states that a by-law is not subject to disallowance where it is made under section 165 of the Excise Act 1901 for the purposes of the Excise Tariff within the meaning of section 4 of that Act. This by-law falls within that item and is therefore not subject to disallowance. Paragraph 15J(2)(f) of the Legislation Act 2003 exempts this instrument from the requirement to contain a statement of compatibility with human rights.
Overview
The Excise By-Law No. 114 (Amendment) (No. 1) 2022 was introduced to address a gap in the legislative framework governing the excise exemptions for offshore fields in Australia. This legislative instrument was enacted under section 165 of the Excise Act 1901 by the Australian Parliament, aiming to amend the existing by-law to include the Tidepole reservoir as a prescribed exempt offshore field. This amendment ensures that a specific quantity of production from the Tidepole reservoir is exempt from excise, as determined by the Minister for Resources and Water. The policy objective behind this legislative change is to provide a clear and specific exemption for a newly identified production area, thereby maintaining the integrity of the excise regime while accommodating new developments in offshore production. The instrument is minor and machinery in nature, with no significant compliance costs or impacts on existing offshore fields.
Scope and Application
The Excise By-Law No. 114 (Amendment) (No. 1) 2022 amends the existing By-Law to add the Tidepole reservoir in the Carnarvon Basin as a prescribed exempt offshore field for the purposes of the Excise Tariff Act 1921. This legislative instrument is made under the authority of the Excise Act 1901 and will ensure that the first 4767.3 megalitres of production from the Tidepole reservoir is exempt from excise. This amendment does not affect any exempt offshore fields that were already prescribed prior to the commencement of this instrument. The By-Law is designed to provide relief to the petroleum industry by exempting certain offshore fields from excise, thereby reducing the regulatory burden on these entities. The instrument is a legislative instrument for the purposes of the Legislation Act 2003, and it is minor or machinery in nature, with no additional regulatory impacts for both implementation and ongoing compliance costs.
Key Provisions
This legislation, Excise By-Law No. 114 (Amendment) (No. 1) 2022, amends the Excise By-Law No. 114 to add the Tidepole reservoir in the Carnarvon Basin as a prescribed exempt offshore field under the Excise Tariff Act 1921 (section 8). This amendment is made to ensure that an exemption from excise is provided on the first 4767.3 megalitres of production from the Tidepole reservoir, which the Minister for Resources and Water determined to be separate from an existing production area, the Rankin Trend (section 9). This addition does not affect any other exempt offshore fields already prescribed under the By-Law (section 8).
The Excise By-Law No. 114, as amended, places obligations on the parties involved in the production and management of the Tidepole reservoir. Specifically, it exempts the first 4767.3 megalitres of production from excise under the Excise Tariff Act 1921 (section 8). The Act also requires that the Commissioner be satisfied that appropriate and reasonably practicable consultation has been undertaken before making such a determination (section 10). This involves sending copies of the draft legislative instrument and explanatory statement to the operator of the Tidepole reservoir for comment and feedback, although in this instance, no comments were received (section 12).
There are no offences, penalties, or civil/criminal consequences explicitly stated in this instrument. However, the legislation is a legislative instrument under the Legislation Act 2003, and any breach of the by-law's provisions may be subject to the penalties outlined in the Excise Tariff Act 1921 or other relevant legislation. The instrument itself is minor or machinery in nature, and there will be no additional regulatory impacts for both implementation and ongoing compliance costs (section 7). The instrument does not adversely affect the rights or liabilities of any person other than the Commonwealth (section 6).