EXPLANATORY STATEMENT
EXCISE ACT 1901
EXCISE REGULATIONS (AMENDMENT)
STATUTORY RULES 1989 NO. 102
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
Section 164 of the Excise Act 1901 (“the Act”) provides in part that “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 the giving of effect to this Act…”
The recently enacted Customs and Excise Legislation Amendment Act (No. 2) 1989 effected miscellaneous amendments to the Excise Act 1901, which, amongst other things:
(i) amended the manner in which the quantity of beer produced is measured for the purposes of assessing Excise duty;
(ii) amended section 78A of the Act to provide that an applicant for diesel fuel rebate must provide such information as is required by a form approved for the purposes of the Diesel-fuel Rebate Scheme by the Comptroller-General, rather than information prescribed by regulation; and
(iii) amended section 58 of the Act so that a person entering goods for home consumption is obliged to provide such information as is required by the Comptroller-General of Customs for that purpose.
These Statutory Rules effect consequential amendments to the Excise Regulations as a result of the amendments to the Excise Act discussed above.
Details of the Regulations are as follows:
Regulation 1 identifies the Excise Regulations as the Principal regulations being amended by these Statutory Rules.
Regulation 2 amends regulation 56 of the Principal Regulations to provide that beer that has had excise paid on it and:
i) has been returned in a bulk container (a term defined in Part VIIA of the Excise Act 1901 as being a container holding 2 or more litres of beer; or
2.
ii) is beer destroyed with the permission of the Collector
is a refund circumstance, upon which excise duty may be refunded.
Regulation 3 repeals the existing regulation 56 of the Principal Regulations (which deals with the manner in which a refund of excise duty will be made if beer is returned to the brewery of manufacture, or destroyed) and substitutes a new regulation that removes references to “hogsheads”, “half hogsheads”, “barrels” and “kilderkins”, which were removed from the Act by the Customs and Excise Legislation Act 1988. The Regulation now provides that where a person returns beer contained in a bulk container to the brewery of manufacture within 90 days after it was first removed from the brewery, or the beer was destroyed either because the beer was unfit, or the permission of the Collector had been obtained, and more than 87.5% of the contents of the bulk container remain in the container, a refund of excise paid on that beer may be made.
Regulation 4 repeals paragraphs 57A(1)(a),(b), (c), and (d) and subregulation 57A(2) of the Excise Regulations.
• These regulations prescribed the information that was required to be provided by a person applying for a rebate of duty in respect of diesel fuel used for certain specific purposes. As the amendment to section 78A of the Act made by the Customs and Excise Legislation Amendment Act (No. 2) 1989 now requires applicants to provide such information by an approved form, these regulations are unnecessary.
Regulation 5 repeals regulation 204 of the Principal Regulations.
• These regulations prescribed the information that must be included in an entry (of excisable products) for home consumption. As the amendment to section 58 of the Act made by the Customs and Excise Legislation Amendment Act (No. 2) 1989 now requires applicants to provide such information by an approved form, these regulations are unnecessary.
Overview
The Excise Regulations (Amendment) Statutory Rules 1989 were enacted to bring the Excise Regulations into alignment with the amendments introduced by the Customs and Excise Legislation Amendment Act (No. 2) 1989. These amendments were made by the authority of the Minister of State for Science, Customs and Small Business under section 164 of the Excise Act 1901, which empowers the Governor-General to make regulations necessary or convenient for the Act's implementation. The primary policy objective behind these amendments is to streamline and modernise the Excise duty assessment process by updating the measurement of beer production quantities, standardising the information required for diesel fuel rebates through approved forms, and ensuring that the details for home consumption entries are provided as specified by the Comptroller-General of Customs. The regulations consequentially remove outdated references and information requirements, thereby enhancing the efficiency and effectiveness of excise duty administration.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1989, issued under the authority of the Minister of State for Science, Customs and Small Business, amend the Excise Regulations to reflect changes made to the Excise Act 1901 by the Customs and Excise Legislation Amendment Act (No. 2) 1989. These amendments apply to all entities and individuals involved in the production, distribution, and consumption of beer and diesel fuel in Australia, ensuring compliance with the updated legislative requirements. The changes encompass the measurement of beer for excise duty assessment, the information required for diesel fuel rebate applications, and the details necessary for entering goods for home consumption. These amendments are designed to streamline and modernise the regulatory framework, eliminating outdated references to specific containers and aligning the regulatory requirements with the updated legislative provisions.
Key Provisions
The Excise Regulations (Amendment) Statutory Rules 1989 introduce several consequential amendments to the Excise Regulations as a result of changes made by the Customs and Excise Legislation Amendment Act (No. 2) 1989. The main provisions of these Statutory Rules include amendments to regulations 56, 57A, and 204 of the Principal Regulations (regulation 1). Regulation 2 amends regulation 56 to provide that excise duty may be refunded for beer returned in a bulk container or destroyed with permission, provided more than 87.5% of the contents remain in the container (regulation 2(i) and (ii)). Regulation 3 removes outdated references to containers such as hogsheads, half hogsheads, barrels, and kilderkins, replacing them with the term "bulk container," and specifies conditions under which a refund may be made (regulation 3). Regulation 4 repeals paragraphs 57A(1)(a), (b), (c), and (d) and subregulation 57A(2) of the Principal Regulations, which previously prescribed the information required for a diesel fuel rebate application, now rendered unnecessary by the amendment to section 78A of the Act (regulation 4). Lastly, Regulation 5 repeals regulation 204, which dealt with the information required for an entry of excisable products for home consumption, now superseded by the amendment to section 58 of the Act (regulation 5).
The Excise Regulations impose several obligations on the parties and entities they govern. For example, under the amended regulation 56, a person must ensure that more than 87.5% of the contents of a bulk container remain in it if they wish to claim a refund of excise duty for beer returned to the brewery or destroyed (regulation 2). Additionally, the repeal of regulation 57A and 204 shifts the responsibility of providing specific information for rebate applications and home consumption entries to the approved forms prescribed by the Comptroller-General, as amended by section 78A and 58 of the Act respectively (regulations 4 and 5).
Breach of any of the provisions of the Excise Regulations may lead to various consequences. Although the Excise Act 1901 does not explicitly state penalties within the Act itself, breaches of excise duty provisions can result in civil or criminal penalties under other relevant legislation, such as the Crimes Act 1914. The maximum penalties can include substantial fines and imprisonment, depending on the severity of the breach and whether it is considered a civil or criminal offence. The precise penalties would be determined in the context of the breach and the specific legislation under which it is prosecuted.