EXPLANATORY STATEMENT
EXCISE ACT 1901
EXCISE REGULATIONS (AMENDMENT)
STATUTORY RULES 1987 NO 212
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
In the 1983 Budget the Government introduced a duty on “fuel oil”, which was contained in item 11(E)(4) of the Schedule to the Excise Tariff Act 1921 This rate of duty was significantly lower than the rate of duty on “diesel fuel” contained in items 11(E)(5), 11(E)(6) and 11(E)(7) of the same Act.
Following a request from the oil industry, a definition of “fuel oil” was determined by the former Department of Minerals and Energy and the Australian Government Anylytical Laboratory. The petroleum product known as “fuel oil light” fell within this definition of “fuel oil”. However, excise had been collected on “fuel oil light” at the higher rates of excise collected on “diesel fuel”, that is, pursuant to paragraphs 11(E)(5),(6) or (7) of the Schedule to the Excise Tariff Act 1921.
A refund is therefore due to those companies which paid the higher rate of excise. So as to permit this refund, an amendment to regulation 50 of the regulations, which governs the conditions under which refunds of excise can be paid, is required. Eligible claimants will be able to claim a refund of the difference between the rate of excise actually paid and rate of excise actually due.
Details of the regulations are follows:
Regulation 1 insert a new paragraph 50(1)(q) into the Excise Regulation which provides that, pursuant to section 78 of the Act, the payment of excise duty pursuant to paragraphs 11(E)(5),(6) or (7) of the Schedule to the Excise Tariff Act 1921 for the purposes of paying excise on petroleum product known as “fuel oil” during the period 23 May 1984 - 30 April 1985 is a circumstance under which a refund of duty is allowable, pursuant to section 78 of the Act; and
• adds new subregulations 50(4) and (5) to the Regulations, which defines “fuel oil” as being petroleum product that satisfy certain specified tests devised by the American Society for Testing and Materials.
Regulation 2 provides that for the purposes of the refund circumstance specified in the new paragraph 50(1)(q) (described above), the amount of refund that may be allowed is the difference between the amount owed pursuant to paragraph 11(E)(4) of the Schedule to the Excise Tariff Act 1921, and the amount actually paid in error, pursuant to paragraphs 11(E)(5),(6) or (7) of the Schedule to the Excise Tariff Act 1921.