Excise Regulations (Amendment)

Overview

The Excise Regulations (Amendment) 1992 No. 62, issued under the authority of the Minister for Small Business, Construction and Customs, was enacted to address the issue of phasing out one and two cent coins as part of the Government's 1990 Budget strategy. This amendment to the Excise Act 1901 introduces a new regulation, 49A, which allows for the rounding down of excise duty to the nearest five cents when duty is paid in cash. This amendment ensures consistency with the Customs regulation 127AA, inserted by Statutory Rules No. 290 of 1991, which similarly rounds down Customs duty. The policy objective of these regulations is to facilitate the transition away from the use of one and two cent coins by providing a mechanism for duty remission when cash is used for payment, while maintaining the requirement for duty to be charged to the nearest cent for payments made by other methods such as credit card, cheque, and electronic means.

Scope and Application

The Excise Regulations (Amendment) 1992 No. 62 applies to the regulation of excise duties under the Excise Act 1901, impacting all entities and individuals required to remit excise duty in Australia. This regulation is a response to the government's decision to phase out one and two cent coins, which necessitated changes in how excise duty is calculated and remitted when paid in cash. By inserting a new regulation 49A, the government authorises a remission of duty to ensure that duty is rounded down to the nearest five cents when paid in cash, aligning with the Customs regulation 127AA that similarly adjusts customs duty. However, this rounding does not apply to duty paid through other means such as credit card, cheque, or electronic transfers, which continue to be charged to the nearest cent. The amendment is applicable nationally, as it is a Commonwealth regulation, and it extends the application of the Excise Act 1901 by modifying the existing regulations to accommodate the phasing out of low-value coins.

Key Provisions

The Excise Regulations (Amendment) 1992 No. 62, issued under the authority of the Minister for Small Business, Construction and Customs, introduce a new regulation 49A into the Excise Act 1901. This amendment is made to align with the government's decision to phase out one and two cent coins. Regulation 49A specifically addresses the rounding down of excise duty to the nearest 5 cents when the duty is paid in cash. This change aims to simplify transactions and reduce the inconvenience caused by the use of smaller denominations. It is important to note that this rounding does not apply to methods of payment other than cash, such as credit card, cheque, or electronic means, where duty is still charged and collected to the nearest cent. The Excise Regulations (Amendment) 1992 imposes specific obligations on taxpayers and businesses to ensure compliance with the new rounding rule. When making cash payments for excise duty, parties must round the amount payable to the nearest 5 cents. This rounding is authorised through an appropriate remission of duty, meaning the duty amount is adjusted to reflect this rounding. Conversely, for payments made via methods other than cash, the exact duty amount must be calculated and paid to the nearest cent, ensuring no rounding is applied. Businesses and taxpayers must keep accurate records and ensure their payment methods comply with these new requirements to avoid any discrepancies or potential fines. Breaches of the Excise Regulations (Amendment) 1992 may result in various consequences, although specific penalties are not detailed in the explanatory statement. Generally, non-compliance with excise regulations can lead to civil and criminal penalties. Civil penalties may include fines and other monetary penalties as prescribed by the Act. Criminal penalties could involve imprisonment or fines, depending on the severity and intent of the breach. The exact penalties would be determined in accordance with the broader provisions of the Excise Act 1901 and any related laws. Parties are encouraged to seek legal advice to understand fully the implications of non-compliance and to ensure adherence to the amended regulations.