EXPLANATORY STATEMENT
Statutory Rules 1986 No. 173
Excise Regulations (Amendment)
Issued by 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 stabilised 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.
The purpose of these regulations is to amend the Excise Regulation to:
(i) provide for new rates of rebate in respect of eligible stabilized crude petroleum oil exported after 31 December 1984; and
(ii) provide for the rebates to be also payable on domestic free market sales of eligible stabilized crude petroleum oil sold after 31 December 1984.
No provision has been 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.
A domestic free market sale is any sale of the oil produced at an installation in the Gippsland Basin in Bass Strait which is sold to a refiner at a price other than the ruling Bass Strait import parity price.
The regulations effect the introduction of the new rates of rebate as follows:
• regulation 1 defines the term “Principal Regulations” for the purposes of the regulations;
• regulation 2 defines the terms “Bass Strait Oil”, “domestic free market sale” and “refiner” for the purposes of the regulations;
• regulation 3 inserts an additional circumstance into regulation 50(n) of the regulations to provide for rebates of excise duty to be also payable on domestic free market sales of the oil; and
• regulation 4 amends regulation 52B of the regulations to introduce new provisions as a consequence of the rebates on domestic free market sales and substitutes a new table to the regulation specifying the rates of rebate of excise duty to be payable on all eligible stabilised crude petroleum oil.
The rates of rebate on the oil sold or exported after 31 December 1984 are -
(a) for quantities that do not exceed 3,963,514.1 kilolitres - 11.795095463;
(b) for any portion of a quantity that exceeds 3,963,514.1 kilolitres but not more than 4,067,713.1 kilolitres - 3.810756149; and
(c) for any portion of a quantity that exceeds 4,067,713.1 kilolitres - NIL.
Overview
The Excise Regulations (Amendment) Statutory Rules 1986 No. 173, enacted by the Minister of State for Industry, Technology and Commerce, aim to address the need for rebates on excise duty for exports and domestic sales of stabilised crude petroleum oil. This regulation was introduced to implement the Government’s decision, announced in the 1983/84 Budget, to rebate excise duty on exports of excisable “old” crude oil. The policy objective of these regulations is to provide for new rates of rebate on eligible stabilised crude petroleum oil exported after 31 December 1984 and to extend the rebate eligibility to domestic free market sales of the oil sold after that date. These amendments ensure that the rebate rates are adjusted to reflect the changing circumstances and market conditions for the oil produced in the Gippsland Basin in Bass Strait.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1986 No. 173 amends the Excise Regulations to provide rebates of excise duty on stabilised crude petroleum oil exported after 30 June 1983 and on domestic free market sales of eligible stabilised crude petroleum oil sold after 31 December 1984. The amendment introduces new rates of rebate in respect of eligible stabilised crude petroleum oil exported or sold after 31 December 1984. The regulations apply to entities involved in the export or domestic sale of stabilised crude petroleum oil produced at an installation in the Gippsland Basin in Bass Strait. The new rates of rebate are specified in the amended regulation 52B and depend on the quantity of oil exported or sold. The regulations also include definitions of key terms such as “Bass Strait Oil”, “domestic free market sale” and “refiner”. The rates of rebate are subject to change through subordinate instruments.
Key Provisions
The Excise Regulations (Amendment) (F1996B03053) amend the existing Excise Regulations to introduce new rates of rebate for excise duty on eligible stabilised crude petroleum oil. Regulation 50(1)(n) is amended to include rebates for both exports and domestic free market sales of this oil, effective from 31 December 1984 onwards (regulation 3). Regulation 52B is also updated to provide new rates of rebate, applicable to all eligible stabilised crude petroleum oil exported or sold domestically from the same date (regulation 4). These amendments aim to align rebate rates with the new fiscal landscape and address the specific economic conditions of the oil industry.
Under these regulations, parties or entities involved in the production, sale, or export of eligible stabilised crude petroleum oil must ensure compliance with the new rebate rates. This involves accurate record-keeping and reporting of quantities sold or exported, as well as determining whether these transactions qualify as domestic free market sales. Refiners and producers must be aware of the definitions provided in regulation 2, which outlines key terms such as "Bass Strait Oil," "domestic free market sale," and "refiner." Proper classification and documentation of sales are essential to correctly apply the rebate rates specified in regulation 4.
Breaches of these regulations could result in financial penalties or legal action. The specific consequences for non-compliance are not detailed in the explanatory statement, but typically, such breaches might involve fines or other enforcement actions. The exact penalties would depend on the nature and severity of the breach, as well as any additional statutory provisions that may apply. Parties are encouraged to seek legal advice to ensure full compliance and to understand the potential ramifications of any non-compliance.