Excise Tariff Amendment Act 1985

Legislation au C2004A03080 Not in force Act

Legislation content

Excise Tariff Amendment Act 1985

No. 41 of 1985

 

An Act relating to Duties of Excise

[Assented to 30 May 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Excise Tariff Amendment Act 1985.

Commencement

2. (1) Sections 1 and 2, sub-section 4 (2) and sections 6 and 7 shall come into operation on the day on which this Act receives the Royal Assent.

(2) Section 3, sub-section 4 (1) and sections 5, 8 and 11 shall be deemed to have come into operation on 23 October 1984.

(3) Section 9 shall be deemed to have come into operation immediately after the commencement of section 9 of the Excise Tariff Amendment Act (No. 2) 1984.

(4) Section 10 shall be deemed to have come into operation on 1 October 1984.


(5) Section 12 shall be deemed to have come into operation on 1 April 1985.

(6) Part III shall be deemed to have come into operation at the hour of 8 o’clock in the evening by standard time in the Australian Capital Territory on 22 June 1984.

PART II—AMENDMENTS OF EXCISE TARIFF ACT 1921

Principal Act

3. The Excise Tariff Act 19211 is in this Part referred to as the Principal Act.

Interpretation

4. (1) Section 3 of the Principal Act is amended—

(a) by inserting before the definition of “new area” the following definitions:

“‘area’ includes—

(a) a part of the surface of the earth and the subsoil beneath that part; and

(b) a part of the surface of the earth and a part of the subsoil beneath that part;

‘intermediate area’ means an area declared by the Minister for Resources and Energy, by notice in writing published in the Gazette, to be an intermediate area for the purposes of this Act, being an area that contains at least one old accumulation but that does not contain a relevant accumulation which was developed before 23 October 1984;

‘intermediate oil’ means stabilized crude petroleum oil (other than new oil or oil in respect of which paragraph 17 (A) (1) in the Schedule applies) produced from an intermediate area;”;

(b) by inserting after the definition of “new oil” the following definitions:

“‘old accumulation’ means a relevant accumulation that was discovered before 18 September 1975;

‘relevant accumulation’ means a naturally occurring discrete accumulation of oil, of gas, or of both.”; and

(c) by adding at the end the following sub-section:

“(2) For the purposes of this Act, a relevant accumulation shall be taken to be developed when petroleum, within the meaning of section 5b, is recovered from the accumulation for the purpose of—

(a) the sale of the petroleum; or

(b) the production from the petroleum of a product for sale.”.


(2) Section 3 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “new area” and substituting the following definition:

“‘new accumulation’ means a relevant accumulation that was discovered on or after 18 September 1975;”; and

(b) by omitting “area” from the definition of “new oil” in sub-section (1) and substituting “accumulation”.

Petroleum

5. Section 5b of the Principal Act is amended—

(a) by omitting “or” from paragraph (a) of the definition of “production area” in sub-section (1); and

(b) by inserting after paragraph (b) of that definition the following word and paragraph:

“or (c) a prescribed intermediate production area within the meaning of section 6d;”.

Duties of excise on certain crude petroleum oil

6. Section 6b of the Principal Act is amended by omitting “discrete accumulation of oil, of gas or of both” from the definition of “prescribed production area” in sub-section (1) and substituting “relevant accumulation”.

Duties of excise on new oil

7. Section 6c of the Principal Act is amended by omitting “discrete accumulation of oil, of gas or of both” from the definition of “prescribed new production area” in sub-section (1) and substituting “relevant accumulation”.

8. After section 6c of the Principal Act the following section is inserted:

Duties of excise on intermediate oil

“6d. (1) In this section—

‘Import Parity Price’ means the amount that is the Import Parity Price within the meaning of section 6b;

‘prescribed division’, in relation to a financial year, has the same meaning as in section 6b;

‘prescribed intermediate production area’ means an intermediate petroleum production area prescribed by Departmental By-laws (which, without limiting the generality of the foregoing, may be a relevant accumulation, a well, an oilfield or a gas field).

“(2) The amount of duty in respect of intermediate oil ascertained in accordance with this section shall be ascertained by reference to the prescribed intermediate production area from which the oil is produced and to the prescribed division of a financial year during which the oil is entered for home consumption.


“(3) The amount of duty in respect of intermediate oil produced from a particular prescribed intermediate production area and entered for home consumption during a particular prescribed division of a financial year is the difference (if any) between—

(a) the amount of notional duty in respect of intermediate oil produced from that production area and entered for home consumption during the period commencing on the commencement of that financial year and ending on the expiration of that prescribed division; and

(b) the amount of duty (if any) paid in respect of the intermediate oil produced from that production area and entered for home consumption during that period.

“(4) The amount of notional duty in respect of intermediate oil produced from a particular prescribed intermediate production area and entered for home consumption during a particular period is the sum of the amounts of notional duty in respect of—

(a) the quantity (if any) of the oil that exceeds A x 6B but does not exceed A x 8B;

(b) the quantity (if any) of the oil that exceeds A x 8B but does not exceed A x 10B;

(c) the quantity (if any) of the oil that exceeds A x 10B but does not exceed A x 12B; and

(d) the quantity (if any) of the oil that exceeds A x 12B,

where—

A is the number of days in the period;

B is—

(a) where the period is in a year in which there are 365 days— 136.98630 kilolitres; or

(b) where the period is in a year in which there are 366 days— 136.61202 kilolitres.

“(5) Subject to sub-sections (6) and (9), the amount of notional duty in respect of a quantity of oil referred to in sub-section (4) is an amount equal to the relevant percentage of the product of—

(a) the amount specified in the Import Parity Price; and

(b) the number of kilolitres in that quantity,

calculated to the nearest cent.

“(6) Where a variation of the Import Parity Price has occurred, or variations of the Import Parity Price have occurred, during a financial year, the amount of the notional duty in respect of a quantity of oil referred to in sub-section (4) produced from a particular prescribed intermediate production area and entered for home consumption during a period in that year (in this section referred to as the ‘relevant period’) is an amount equal to the relevant


percentage of the sum of the amounts calculated in respect of each Import Parity Price in operation during that period in accordance with the formula—

where—

C is the amount specified in the Import Parity Price;

D is the number of kilolitres in the quantity;

P is the number of kilolitres of intermediate oil produced from that production area and entered for home consumption after the commencement of the relevant period or the day on which the Import Parity Price was determined (whichever occurred last) and before the end of the relevant period or the day on which another Import Parity Price was determined (whichever occurred first);

Q is the number of kilolitres of intermediate oil produced from that production area and entered for home consumption during the relevant period.

“(7) For the purposes of sub-sections (5) and (6), the relevant percentage in relation to a quantity of oil referred to in sub-section (4) is—

(a) in the case of a quantity to which paragraph (4) (a) applies—15%;

(b) in the case of a quantity to which paragraph (4) (b) applies—30%;

(c) in the case of a quantity to which paragraph (4) (c) applies—50%; and

(d) in the case of a quantity to which paragraph (4) (d) applies—55%.

“(8) For the purposes of sub-sections (5) and (6), the number of kilolitres in a quantity of oil shall be taken to be a number equal to—

(a) unless paragraph (b) applies—the number of kilolitres in that quantity calculated to 1 decimal place; or

(b) where the number of kilolitres in that quantity calculated to 2 decimal places ends in a number greater than 4—the number of kilolitres in that quantity calculated to 1 decimal place increased by 0.1.

“(9) Where no intermediate oil produced from a particular prescribed intermediate production area was ever entered for home consumption before the expiration of the first prescribed division of a particular financial year, then, in ascertaining, in accordance with sub-sections (4), (5) and (7) or (4), (6) and (7), the notional duty in respect of intermediate oil produced from that production area and entered for home consumption during a later prescribed division (in this sub-section referred to as the ‘relevant division’) of that financial year, those sub-sections have effect in relation to the intermediate oil


as if each reference in a paragraph of sub-section (4) to B were a reference to the product of B and the factor ascertained in accordance with the formula—

where—

R is the number of days in the period commencing on the day on which intermediate oil produced from the prescribed intermediate production area was first entered for home consumption and ending on the expiration of the relevant division; and

S is the number of days in the period commencing on the first day of the financial year and ending on the expiration of the relevant division.

“(10) The words set out after ‘, if higher,’ in the column headed ‘Rate of Duty’ in sub-paragraph 17 (a) (2) (aa) in the Schedule shall be deemed, for the purposes of this Act or any other law of the Commonwealth, to be a rate of duty.”.

Amendment of Schedule having effect from 1 July 1984

9. The Schedule to the Principal Act is amended by omitting from paragraph 17 (c) (2) “$36.96” and substituting “$35.55”.

Amendment of Schedule having effect from 1 October 1984

10. The Schedule to the Principal Act is amended by omitting from paragraph 17 (c) (2) “$35.55” and substituting “$34.70”.

Amendment of Schedule having effect from 23 October 1984

11. The Schedule to the Principal Act is amended by inserting after sub-paragraph 17 (a) (2) (a) the following sub-paragraph:

“(aa) Intermediate oil

Free, or, if higher, the amount of duty ascertained in accordance with section 6d”.

Amendment of Schedule having effect from 1 April 1985

12. The Schedule to the Principal Act is amended by omitting from paragraph 17 (c) (2) “$34.70” and substituting “$36.94”.

PART III—AMENDMENT OF EXCISE TARIFF AMENDMENT ACT (No. 2) 1984

Principal Act

13. The Excise Tariff Amendment Act (No. 2) 19842 is in this Part referred to as the Principal Act.

Amendments of Schedule having effect from 22 June 1984

14. Section 8 of the Principal Act is amended by omitting “$1.56” and substituting “$1.50”.


NOTES

1. No. 26, 1921, as amended, For previous amendments, see No. 28, 1924; No. 28, 1926; No. 4, 1928; Nos. 20 and 21, 1933; No. 17, 1936; Nos. 24 and 70, 1938; Nos. 29, 54 and 65, 1939; Nos. 3, 4, 14 and 93, 1948; Nos. 77 and 82, 1949; Nos. 61, 62 and 80, 1950; No. 83, 1952; No. 78, 1953; Nos. 16, 59 and 87, 1956; No. 82, 1957; No. 19, 1958; Nos. 26, 65 and 66, 1959; Nos. 26 and 57, 1960; Nos. 21 and 55, 1961; No. 73, 1962; Nos. 41 and 91, 1963; No. 125, 1964; Nos. 83 and 140, 1965; Nos. 18 and 82, 1967; Nos. 74 and 75, 1968; Nos. 5 and 33, 1969; No. 81, 1970; No. 108, 1971; Nos. 22,64 and 119, 1972; Nos. 20, 23, 146 and 216, 1973; No. 121, 1974; Nos. 104 and 136, 1977; Nos. 48 and 184, 1978; Nos. 81, 83 and 164, 1979; Nos. 43, 44, 45 and 122, 1980; No. 50, 1981; Nos. 45, 54 and 80, 1982; Nos. 27 and 99, 1983; and Nos. 53, 72 and 131, 1984.

2. No. 131, 1984.

[Minister’s second reading speech made in—

House of Representatives on 23 April

1985 Senate on 13 May 1985]

Overview

The Excise Tariff Amendment Act 1985, enacted by the Commonwealth Parliament, amends the Excise Tariff Act 1921 to adjust excise duties on petroleum products, particularly targeting crude petroleum oil. The Act introduces new definitions and classifications for petroleum accumulations, distinguishing between old, intermediate, and new oil to better align duty rates with the timing of oil discovery and development. The legislation aims to ensure that excise duties are fairly applied based on the age of the oil accumulation and the stage of development, thereby addressing inconsistencies in the taxation of petroleum products. The Act also introduces intermediate oil categories and adjusts duty rates to reflect these new classifications, ensuring that the tax system remains equitable and responsive to changes in the petroleum industry. The Excise Tariff Amendment Act 1985 seeks to clarify and update the excise duty structure on petroleum, ensuring that duties are imposed in a manner that reflects the economic realities of oil production and development. By providing specific definitions for different types of petroleum accumulations and establishing a tiered duty system based on these classifications, the Act aims to achieve a more nuanced and effective taxation regime. This approach helps to balance the need for government revenue with the realities of the petroleum industry, ensuring that the tax burden is appropriately distributed across different types of oil production.

Scope and Application

The Excise Tariff Amendment Act 1985 amends the Excise Tariff Act 1921 to modify the definitions and the application of excise duties on certain petroleum products. The Act applies to entities involved in the production, sale, or entry for home consumption of crude petroleum oil, intermediate oil, and new oil within Australia. The definitions of "area," "intermediate area," "intermediate oil," "old accumulation," "relevant accumulation," and "new accumulation" are revised to better classify petroleum resources and the timing of their discovery and development. The Act also modifies the duties of excise on certain crude petroleum oil by updating the definitions of "prescribed production area" and "prescribed new production area." Additionally, it introduces new provisions for the duties of excise on intermediate oil, including the calculation of notional duty based on the Import Parity Price and the prescribed intermediate production area. The Act applies nationally across Australia and its provisions are effective as per the specified commencement dates outlined in the Act. There are no explicit exclusions or exemptions mentioned in the Act; however, the application of duties may be influenced by subordinate instruments or regulations that may further define the scope and application of these provisions.

Key Provisions

The Excise Tariff Amendment Act 1985 introduces several amendments to the Excise Tariff Act 1921. Firstly, it amends the definitions of terms such as 'area', 'intermediate area', 'intermediate oil', 'old accumulation', and 'relevant accumulation' by inserting new definitions and modifying existing ones. These definitions are crucial for determining the scope and applicability of the Act’s provisions, particularly in relation to petroleum production and the classification of oil fields. Section 5b of the Principal Act is amended to adjust the definition of 'production area', now including 'prescribed intermediate production area'. Additionally, sections 6b and 6c are modified to substitute 'relevant accumulation' for 'discrete accumulation of oil, of gas, or of both' in the definitions of 'prescribed production area' and 'prescribed new production area', respectively. A new section, 6d, is inserted to address duties of excise on intermediate oil, providing detailed provisions on how the duty is ascertained based on the prescribed intermediate production area and the financial year. The Act imposes specific obligations on entities involved in petroleum production. It requires adherence to the newly defined terms and provisions, particularly for calculating duties on intermediate oil. The Act mandates that the duty on intermediate oil be calculated based on the prescribed intermediate production area and the financial year, with specific formulas provided for determining notional duty and actual duty payable. The Act also necessitates the payment of any difference between the notional duty and the duty previously paid. The Minister for Resources and Energy has the authority to declare areas as 'intermediate areas' through a written notice published in the Gazette, further delineating the scope of the Act's application. For breaches of the provisions outlined in the Excise Tariff Amendment Act 1985, the Act does not explicitly state specific offences, penalties, or consequences. However, non-compliance with the duty calculation and payment requirements could potentially lead to civil or administrative penalties under other related legislation. The precise penalties would depend on the nature and severity of the breach, as well as the relevant provisions of other Acts and regulations that govern petroleum production and taxation in Australia.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Offence Provisions

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.