EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 249
EXCISE REGULATIONS (AMENDMENT)
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR INDUSTRY, TECHNOLOGY AND COMMERCE
Statutory Rules 1984 No.126 amended the Excise Regulations (“the Regulations”) to:
(i) insert a new circumstance into regulation 50, as paragraph (50(1)(n), to allow rebates of excise duty to be paid on stabilized crude petroleum oil exported after 30 June 1983; and
(ii) insert a new regulation 52B to prescribe the rates of rebate to be so paid.
This regulation was made following the Government’s decision in the context of the 1983/84 Budget that excise duty would be rebated on exports of excisable “old” crude oil. Statutory Rules 1985 No. 357 amended regulation 52B to prescribe revised rates of rebate in respect of eligible stabilized crude petroleum oil for the 1983/84 financial year and for the period from 1 July 1984 to 31 December 1984.
Statutory Rules 1986 No. 173 amended the Regulations to;
(i) provide for new rates of rebate in respect of eligible stabilized crude petroleum oil exported after 1 January 1985; and
(ii) at the request of the Minister for Resources and Energy, provide for the rebates to be also payable on domestic free market sales of eligible stabilized crude petroleum oil sold after 1 January 1985.
No provision was made for rebates on domestic free market sales of oil prior to 1 January 1985 as no domestic free market sales were made prior to that date.
The main purpose of these regulations is to effect the introduction of new rates of rebates in respect of exports or sales of eligible stabilized crude petroleum oil for the period 1 January 1986 to 31 August 1986.
Regulation 1 specifies the rates of rebate on oil exported or sold as a domestic free market, sale for that period as follows -
(a) for quantities that do not exceed 726, 758.1 kilolitres - $6.155500104 per kilolitre
(b) for any portion of a quantity that exceeds 726,758.1 kilolitres but not more than 761,906.3 kilolitres - $375.115345878 per kilolitre
(c) for any portion of a quantity that exceeds 761,906.3 kilolitres - Nil
Regulations 1 also effects an adjustment to the rebate rates in respect of oil exported in the financial year commencing on 1 July 1983. The adjustments are necessary as a consequence of metering errors detected for that period at the production areas in Bass Strait.
Regulation 2 provides that where rebates have been paid to a person for the financial year affected by the error, that person is only entitled to an additional rebate amount equal to the difference between the previous amount and the revised amount proposed for that period by regulation 1.
Authority
Section 164 of the Excise Act 1901.
Overview
The Excise Regulations (Amendment) Statutory Rules 1986 No. 249 were enacted to amend the Excise Regulations in response to the Government's policy on rebating excise duty on exports and domestic sales of stabilized crude petroleum oil. This legislative amendment was introduced to address discrepancies in rebate rates due to metering errors at Bass Strait production areas during the financial year commencing on 1 July 1983. The regulations were issued by the authority of the Minister of State for Industry, Technology and Commerce, and the policy objective was to ensure that excise duty rebates were fairly applied to eligible oil exports and domestic sales from 1 January 1986 to 31 August 1986. This amendment provided specific rates for rebates on exports and domestic sales, adjusted the rates for prior periods to correct the metering errors, and outlined the process for additional rebates for affected taxpayers.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1986 No. 249 applies to entities and individuals involved in the export and domestic sale of stabilized crude petroleum oil, specifically targeting those who have exported or sold such oil after 30 June 1983. The regulations are part of the broader framework established under the Excise Act 1901, and they specifically address the rebates on excise duty for eligible stabilized crude petroleum oil. The amendments are designed to ensure that appropriate rebates are provided to those who have exported or domestically sold the oil within the specified periods, as well as to adjust for any metering errors that may have occurred. The regulations set forth specific rates of rebate for different quantities of oil exported or sold domestically, with adjustments made to correct for previously identified errors. The scope of the amendment is limited to the financial years specified, and it does not apply retroactively to sales or exports prior to the identified dates. Furthermore, the regulations only apply to the Commonwealth of Australia, with no provision for rebates on domestic free market sales of oil prior to 1 January 1985 as no such sales were made before that date.
Key Provisions
The Excise Regulations (Amendment) Statutory Rules 1986 No. 249 introduces new rates of rebate for exports and domestic sales of eligible stabilized crude petroleum oil for the period from 1 January 1986 to 31 August 1986. Regulation 1 specifies the rebate rates for this period, with tiered rates depending on the volume of oil exported or sold. For quantities not exceeding 726,758.1 kilolitres, the rebate rate is $6.155500104 per kilolitre, while for quantities exceeding this amount but not more than 761,906.3 kilolitres, the rebate rate reduces to $375.115345878 per kilolitre. For any portion of a quantity exceeding 761,906.3 kilolitres, no rebate is applicable (Regulation 1(a), (b), (c)). Additionally, Regulation 2 adjusts the rebate rates for oil exported in the financial year commencing on 1 July 1983, due to metering errors detected in Bass Strait.
The Act imposes specific obligations on the parties or entities involved. Firstly, eligible entities must ensure accurate reporting and record-keeping of the quantities of stabilized crude petroleum oil exported or sold domestically within the specified periods. This involves maintaining detailed logs and documentation that can be audited by the relevant authorities (Section 164, Excise Act 1901). Secondly, entities that have already received rebates for the financial year impacted by metering errors must submit revised claims to receive the adjusted rebate amount as stipulated by Regulation 2. This process requires careful calculation of the difference between the previously paid rebate and the revised amount proposed by Regulation 1.
Failure to comply with the provisions of the Excise Regulations can result in various consequences. For instance, any entity found to have inaccurately reported quantities or failed to adjust their rebate claims in accordance with Regulation 2 could face penalties. Under the Excise Act 1901, penalties may include fines or other financial penalties as deemed appropriate by the court. In severe cases, repeated non-compliance could lead to more serious criminal charges, potentially resulting in imprisonment. It is imperative for entities to adhere strictly to the reporting and rebate adjustment requirements to avoid these repercussions.