Excise Regulations (Amendment)

Overview

The Statutory Rules 1983 No. 306, enacted under the authority of the Minister of State for Industry and Commerce, address the redundancy of Regulation 93A of the Excise Regulations. Originally established to provide a waste allowance of 2.5 percent on duty paid for spirit used to fortify wine or grape must, Regulation 93A became obsolete following the abolition of excise duty on fortifying spirit in 1970. The regulation was formally repealed as part of a broader fiscal policy adjustment announced by the Treasurer on 23 August 1983. The primary objective of this legislative amendment is to align the Excise Regulations with the current fiscal framework, allowing for bona fide losses in approved places to be claimed without a fixed ceiling, thereby reflecting the contemporary method and time of duty payment on spirit.

Scope and Application

The regulation pertains to the amendment of the Excise Regulations, specifically addressing the waste allowance on spirit used to fortify wine or grape must. The regulation primarily applies to entities engaged in the approved production of fortified wine or grape must, where spirit is used as an ingredient. The scope extends to any entity or individual that is directly involved in the process of fortifying wine or grape must within an approved place, as defined under the Excise Act. Geographically, the regulation operates under the Commonwealth jurisdiction, impacting entities across Australia. The amendment repeals regulation 93A which previously stipulated a 2.5 percent waste allowance on duty paid for fortifying spirit, a provision that has been rendered obsolete following the abolition of excise duty on fortifying spirit in 1970. The regulation also clarifies that under the new arrangements, any bona fide losses in approved places, even those exceeding 2.5 percent, will be permissible provided evidence is produced to substantiate these losses, effectively removing the need for a regulatory ceiling on allowable losses.

Key Provisions

The main operative sections of this legislation pertain to the amendment and repeal of Regulation 93A of the Excise Regulations (section 1). Regulation 93A, which provided for a waste allowance of 2.5 percent of duty paid on spirit used to fortify wine or grape must in an approved place, is being repealed (section 2). The reason for this repeal is that excise duty on fortifying spirit has been abolished, rendering the regulation redundant given the changes in duty payment methods and timings (section 3). The new arrangements allow for bona fide losses in approved places to be compensated even if they exceed the previous 2.5 percent allowance (section 4). The obligations and requirements imposed by this Act primarily concern the cessation of the waste allowance provision under Regulation 93A (section 2). Those who previously relied on this allowance must now adapt to the new system, where they can claim for losses greater than 2.5 percent if they can provide evidence of such losses (section 4). The Act also mandates that the new compensation method for losses must be based on actual evidence rather than a fixed percentage, ensuring a more flexible and fair approach to handling losses (section 4). The legislation does not specify any new offences or penalties for breach but notes that the previous regulation was redundant and has been repealed (section 2). The maximum penalties for any breaches under the Excise Regulations would still apply as per existing laws, although the specific details of these penalties are not outlined in this piece of legislation. It is important for parties involved to be aware of the changes and ensure compliance with the new regulations to avoid any potential legal repercussions (section 2).