EXPLANATORY STATEMENT
Statutory Rules 1985 No. 357
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.
The total amount of rebate to be paid on eligible stabilized crude petroleum oil is determined on the basis of 87% of the difference between the ruling Bass Strait import parity price and the effective realised price achieved by each producer/exporter (for the period 1 July 1984 to 31 December 1984 the rate of rebate is 35%).
The rates of rebate prescribed in regulation 52B, however, provided for only a proportion of the total amount of rebate to be paid as the precise figures for the rebate were not known until final information on production and exports for the 1983/84 financial year was available.
The purpose of the regulations is to substitute a revised 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 a new rate which will represent the total amount of rebate that is to be paid in the circumstance specified in paragraph 50(1)(n) of the Regulations for those periods.
The regulations effect the introduction of the revised rates of rebate as follows:
• regulation 1 repeals regulation 52B and substitutes a new regulation 52B containing a table which specifies the rates of rebate now allowable in the circumstance specified in paragraph 50(1)(n) of the Regulations for the volumes of oil and the periods specified in the table.
(b) for any portion of a quantity that exceeds 642,301.5 kilolitres but not more than 818,483.1 kilolitres - $8.2864631; and
(c) for any portion of a quantity that exceeds 818,483.1 kilolitres - Nil.
(ii) Oil exported from 1 July 1984 to 31 December 1984 (inclusive) -
(a) for any quantity up to 786,441.7 kilolitres - $7.89019491;
(b) for any portion of a quantity that exceeds 786,441.7 kilolitres but not more than 970.889.8 kilolitres - $12.4914896; and
(c) for any portion of a quantity that exceeds 970.889.8 kilolitres - Nil.
• sub-regulation 2(1) provides for the retrospective operation of the regulations to apply to oil exported after 30 June 1983.
The new rates represent the full rate of rebate to be paid in the circumstance referred to in paragraph 50(1)(n) of the Regulations and eligible claimants will be entitled to a rebate at the new rate if that rate is higher than the rate specified in the repealed regulation 52B.
• sub-regulation 2(2) provides, in relation to rebates payable in respect of the 1983/84 financial year, that if a claimant would be entitled to a larger rebate under existing regulation 52B than would be the case under new regulation 52B then the existing regulation 52B applies and the claimant is eligible for the larger rebate.
This will ensure that no claimant can be disadvantaged by the regulations which are retrospective in operation.
Overview
The Excise Regulations (Amendment) Statutory Rules 1985 No. 357, enacted by the Authority of the Minister of State for Industry, Technology and Commerce, was introduced to address the need for a revised calculation of excise duty rebates for the export of stabilized crude petroleum oil. The initial amendment in 1984 had established a framework for rebates based on provisional figures, but the subsequent availability of accurate production and export data necessitated an adjustment to ensure precise rebate calculations. The policy objective was to accurately reflect the rebates due on excisable “old” crude oil exports, ensuring fairness and compliance with budgetary decisions outlined in the 1983/84 Budget. The new regulations effectively substitute the provisional rebate rates with revised rates, ensuring that eligible claimants receive the correct rebates based on the finalised data for the 1983/84 financial year and the period from 1 July 1984 to 31 December 1984.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1985 No. 357 applies to entities engaged in the production and export of stabilized crude petroleum oil, specifically targeting those who exported such oil after 30 June 1983. The amendment pertains to the rebate of excise duty for these exports and involves the insertion of a new circumstance into regulation 50, as well as a new regulation 52B, which prescribes the rates of rebate. This regulation was enacted following the Government's decision to rebate excise duty on exports of excisable "old" crude oil as part of the 1983/84 Budget. The rebate rates are determined based on the difference between the Bass Strait import parity price and the effective realised price achieved by each producer/exporter. The rates are adjusted retrospectively to ensure that no claimant is disadvantaged, with specific rates provided for different volumes of oil and time periods, culminating in a nil rebate for quantities exceeding specified thresholds.
Key Provisions
The Excise Regulations (Amendment) Statutory Rules 1985 No. 357, issued under the authority of the Minister of State for Industry, Technology and Commerce, introduce specific provisions regarding the rebate of excise duty on stabilized crude petroleum oil exports. Regulation 50(1)(n) has been amended to include a new circumstance allowing rebates for stabilized crude petroleum oil exported after 30 June 1983 (paragraph 1). Additionally, a new regulation 52B has been inserted to set the rates of rebate payable for these exports (paragraph 2). The regulations were enacted to reflect the government's decision in the 1983/84 Budget to rebate excise duty on exports of excisable "old" crude oil.
The Excise Regulations (Amendment) impose specific obligations on entities involved in the export of stabilized crude petroleum oil. The total rebate amount is based on 87% of the difference between the Bass Strait import parity price and the effective realized price achieved by each producer/exporter. For the period from 1 July 1984 to 31 December 1984, a specific rebate rate of 35% applies (paragraph 3). Regulation 52B is updated to include a table specifying the new rates of rebate for various volumes of oil and specific periods (paragraph 4). This regulation ensures that claimants are entitled to the higher rebate if the new rate is more favourable than the previous rate.
The regulations also provide for the retrospective application of the new rebate rates to oil exported after 30 June 1983. For oil exported during certain periods, the rebate rates are specified as follows: for quantities up to 642,301.5 kilolitres, the rate is $8.1542462; for quantities exceeding 642,301.5 kilolitres but not more than 818,483.1 kilolitres, the rate is $8.2864631; and for quantities exceeding 818,483.1 kilolitres, the rebate is Nil (paragraph 5). For oil exported from 1 July 1984 to 31 December 1984, the rates are: for quantities up to 786,441.7 kilolitres, the rate is $7.89019491; for quantities exceeding 786,441.7 kilolitres but not more than 970,889.8 kilolitres, the rate is $12.4914896; and for quantities exceeding 970,889.8 kilolitres, the rebate is Nil (paragraph 6). These rates ensure that the rebate is calculated accurately and fairly for the specified periods.
Breaches of the Excise Regulations (Amendment) may lead to various consequences, though specific penalties are not detailed within the text. Generally, non-compliance with regulations governing excise duty rebates could result in financial penalties, administrative actions, or legal proceedings. The exact penalties would depend on the nature and severity of the breach, as well as other relevant legal frameworks. Ensuring adherence to these regulations is crucial for entities involved in the export of stabilized crude petroleum oil to avoid potential legal and financial repercussions.