Excise Regulations (Amendment) 1992 No. 327
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 327
Issued by the Authority of the Minister for Small Business, Construction and Customs
Excise Act 1901
Excise Regulations (Amendment)
Section 164 of the Excise Act 1901 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 ... "
Section 78 of the Act then specifies, amongst other things, that rebates of excise duty are allowed in such circumstances and subject to such conditions and restrictions as are prescribed, and that the regulations may also prescribe the amount of any rebate of excise duty that may be allowed.
The Government decided on 28 May 1989 that the road funding component of excise duty on diesel used in certain ships would be rebated to the coastal shipping industry from 1 July 1992.
The rationale for the rebate was to ensure that coastal shipping operators and, indirectly, the users of coastal shipping would no longer subsidise competing transport modes. The rebate is part of a package of reforms to the Australian shipping industry designed to increase the efficiency and competitiveness of that industry, and is therefore to be available to those parties involved in that process.
The Regulations implement the Government's decision by specifying those ships eligible for rebate and specifying the rate of rebate applicable as follows:
Regulation 1 is a machinery provision which specifies that the Excise Regulations are amended by the Regulations.
Regulation 2 provides for a new rebate circumstance in the Excise Regulations by inserting new paragraph 50(1)(w) which specifies the eligibility criteria for the new rebate scheme to be as follows:
• the rebate is to be payable to the purchaser of diesel fuel where excise duty has been paid on that diesel fuel at the rate specified in subitem 11(E)(2) of the Schedule to the Excise Tariff Act 1921; and
• the fuel has been purchased by the applicant on or after 1 July 1992 for use in an eligible vessel; that is, a vessel which is 60 metres or more in length and comes within the definition of a "trading ship" in the Ships (Capital Grants) Act 1987; and
• the applicant for rebate certifies that no other rebate, remission, refund or drawback has been, is being or will be claimed in respect of that diesel fuel.
Regulation 3 specifies the rate of rebate applicable by inserting a new regulation 52E which specifies that the rate of rebate for diesel fuel to which new paragraph 50(1)(w) applies is to be 5.31 cents per litre.
The Regulations commenced on gazettal.
Overview
The Excise Regulations (Amendment) 1992 No. 327, issued by the authority of the Minister for Small Business, Construction and Customs, amends the Excise Act 1901 to implement a rebate for excise duty on diesel used in certain ships. This legislative measure was introduced to ensure that coastal shipping operators and their customers were no longer subsidising competing transport modes, thereby increasing the efficiency and competitiveness of the Australian shipping industry. The policy objective is to provide a rebate to the coastal shipping industry, which had previously contributed to the excise duty on diesel used in eligible vessels without receiving any form of reimbursement.
The regulations specify that the rebate applies to diesel fuel purchased for use in vessels that are 60 metres or more in length and are defined as "trading ships" under the Ships (Capital Grants) Act 1987. The rebate rate is set at 5.31 cents per litre for fuel purchased on or after 1 July 1992, and it is contingent upon the purchaser certifying that no other rebates, remissions, refunds, or drawbacks have been, are being, or will be claimed in respect of that diesel fuel. The amendments commenced upon gazettal, effectively providing the stipulated relief to the targeted industry from the specified date.
Scope and Application
The Excise Regulations (Amendment) 1992 No. 327 applies to the rebate of excise duty on diesel used in certain ships, specifically targeting the coastal shipping industry to ensure that these operators and their customers are no longer subsidising competing transport modes. This rebate scheme is applicable to diesel fuel purchased on or after 1 July 1992 for use in vessels that are 60 metres or more in length and classified as "trading ships" under the Ships (Capital Grants) Act 1987. The rebate is available to the purchaser of the diesel fuel, provided that no other rebate, remission, refund, or drawback has been claimed in respect of the same fuel. The rebate rate is set at 5.31 cents per litre as per the amendment. These Regulations are made under the authority of the Excise Act 1901 and commenced on gazettal, extending the Act's reach to include this specific rebate for the coastal shipping industry, thereby impacting the relevant entities and transactions within that sector.
Key Provisions
The Excise Regulations (Amendment) 1992 No. 327, under the Excise Act 1901, introduces a rebate scheme for excise duty on diesel used in specific vessels. Section 164 of the Act allows the Governor-General to make regulations necessary to give effect to the Act, including provisions for rebates of excise duty. Regulation 2 amends the Excise Regulations to include a new rebate circumstance, specifically for diesel fuel purchased for use in eligible vessels from 1 July 1992. This rebate is to be applied to diesel fuel that has been subjected to excise duty at the specified rate and must meet the criteria outlined in subitem 11(E)(2) of the Schedule to the Excise Tariff Act 1921.
The obligations imposed by these Regulations require purchasers of diesel fuel to ensure that their vessels meet the eligibility criteria: the vessels must be 60 metres or more in length and classified as a "trading ship" under the Ships (Capital Grants) Act 1987. Furthermore, applicants must certify that no other rebate, remission, refund, or drawback has been, is being, or will be claimed in respect of the diesel fuel in question. This certification is a crucial requirement for qualifying for the rebate.
Violations of the provisions set out in these Regulations may lead to civil or criminal consequences. While the specific offences and penalties are not detailed in the explanatory statement, it is common under Australian legislation for breaches to be subject to fines or other penalties as prescribed by law. The severity of the penalties can depend on the nature and extent of the breach, with potential maximum penalties outlined in the relevant sections of the Excise Act 1901. It is important for parties involved to adhere strictly to the stipulated conditions and requirements to avoid any adverse legal consequences.