Excise Regulations (Amendment) 1994 No. 316
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 316
Issued by the Authority of the Minister for Small Business, Customs and Construction
Excise Act 1901
Excise Regulations (Amendment)
Section 164 of the Excise Act 1901 (the Act) provides in part that:
"(1) The Governor-General may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to this Act or for the conduct of any business relating to the Excise, ..."
These Regulations amend Excise Regulations (the Regulations) to prescribe that the amount of any rebate of duty paid on diesel fuel used in the manufacture of explosives is to be based on the duty applicable at the time the diesel fuel was purchased by the applicant for rebate.
Subsection 78(1) of the Act provides that refunds, rebates and remissions of duty may be made in such circumstances and subject to such conditions and restrictions as are prescribed by the Regulations. Subsection 78(2) of the Act provides that the Regulations may prescribe the amount, or the means of determining the amount, of any refund, rebate or remission of duty that may be made.
Paragraph 50(1)(x) of the Regulations provides for rebates of excise duty paid on diesel fuel for use in the manufacture of explosives. The Regulations do not presently provide a specific means of calculating this amount and therefore are administered on the basis that where an amount is not prescribed, the amount of rebate should be the amount of duty paid.
In administering the Regulations it has become evident that difficulties arise in trying to determine the amount of duty paid. This is because the applicant for rebate is usually not the person who paid the duty and therefore there is no easily identified record of the amount of duty paid on the diesel fuel that is the subject of the application.
To overcome these difficulties, these Regulations amend the Regulations to provide that the rebate should be paid at the rate of duty in force on the date of purchase of the diesel fuel by the applicant for the rebate.
Regulation 2.1 inserts a new regulation 52F into the Regulations which provides that the amount of any rebate of duty paid on diesel fuel in the circumstance referred to in paragraph 50(1)(x) is to be based on the rate of duty applicable to that diesel fuel at the time it was purchased by the applicant for rebate.
The Regulations commence on gazettal.
Overview
The Excise Regulations (Amendment) 1994 No. 316 was enacted to address a specific problem regarding the calculation of rebates for excise duty paid on diesel fuel used in the manufacture of explosives. The issue stemmed from the difficulty in determining the exact amount of duty paid, particularly when the applicant for the rebate was not the original purchaser of the diesel fuel. This inconsistency in administration led to practical challenges in accurately assessing rebates. The legislation was introduced by the Parliament of Australia, with the aim of clarifying the rebate process by basing it on the rate of duty applicable at the time the diesel fuel was purchased by the applicant for rebate. This amendment ensures a more straightforward and equitable method for determining the rebate amount, facilitating better compliance and administration of the Excise Act 1901.
Scope and Application
The Excise Regulations (Amendment) 1994 No. 316 amends the Excise Regulations under the authority of the Minister for Small Business, Customs and Construction to address a specific issue concerning the rebate of excise duty paid on diesel fuel used in the manufacture of explosives. This amendment applies to entities and individuals involved in the manufacturing of explosives, particularly those who use diesel fuel in their processes and are eligible for a rebate of excise duty. The scope of these Regulations is national in nature, impacting entities across Australia as they pertain to the Excise Act 1901, which is a Commonwealth Act. The amendment does not introduce any exclusions or exemptions but provides a clear method for determining the rebate amount by referencing the duty applicable at the time of purchase. These Regulations are administered under the authority of the Excise Act 1901, and further details or specific conditions may be prescribed through subordinate instruments as necessary. The amendment aims to simplify the rebate calculation process and ensure it is based on a definitive and readily ascertainable rate of duty.
Key Provisions
The Excise Regulations (Amendment) 1994 No. 316 introduces amendments to the Excise Regulations, specifically addressing how rebates for excise duty paid on diesel fuel used in the manufacture of explosives are calculated. Section 164 of the Excise Act 1901 empowers the Governor-General to make regulations that are necessary or convenient for the administration of the Act. This amendment inserts a new regulation, 52F, into the Excise Regulations, stipulating that any rebate for duty paid on diesel fuel used in the manufacture of explosives must be based on the rate of duty applicable at the time the diesel fuel was purchased by the applicant for the rebate (Section 164, Regulation 2.1). This change is intended to resolve the practical difficulties in determining the exact amount of duty paid, as the applicant for the rebate is often not the entity that paid the duty.
The new regulation, 52F, imposes obligations on parties seeking rebates for excise duty on diesel fuel used in explosives manufacturing. These parties must now demonstrate the rate of duty applicable at the time of purchase to qualify for the rebate. This requirement ensures that the rebate amount is accurately calculated, reflecting the duty rate in force at the time of the purchase. The amendment also aims to streamline the administrative process by providing a clear method for determining the rebate amount, thus reducing ambiguities and potential disputes. This change is designed to ensure fairness and consistency in the application of excise rebates, enhancing the overall effectiveness of the Excise Regulations.
Breaching the provisions of the Excise Regulations, including the newly introduced regulation 52F, may result in civil or criminal consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, the Excise Act 1901 and related regulations typically provide for penalties that can include fines and, in more serious cases, imprisonment. The precise penalties would depend on the nature and severity of the breach, as well as any relevant case law and interpretations by the courts. The amendment aims to provide clarity and reduce administrative challenges, thereby mitigating the risk of inadvertent non-compliance and its associated penalties.