Excise Tariff Amendment Act (No. 1) 2004
No. 44, 2004
An Act to amend the Excise Tariff Act 1921, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendment of the Excise Tariff Act 1921
Excise Tariff Act 1921
Excise Tariff Amendment Act (No. 1) 2004
No. 44, 2004
An Act to amend the Excise Tariff Act 1921, and for related purposes
[Assented to 21 April 2004]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Excise Tariff Amendment Act (No. 1) 2004.
2 Commencement
This Act is taken to have commenced on 18 September 2002.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendment of the Excise Tariff Act 1921
Excise Tariff Act 1921
1 Subsection 6G(1) (paragraph (a) of the definition of previously paid duties)
Omit “2,”.
2 Subsection 6G(2)
Repeal the subsection, substitute:
(2) Duty payable under this Act on an excisable blended petroleum product for use as fuel in an internal combustion engine and containing a blend of:
(a) goods that are classified to item 11 or 12 of the Schedule and:
(i) that are for use as fuel in an internal combustion engine, but not for use as fuel in aircraft; and
(ii) if the goods have a lead content—that do not have a lead content exceeding 13 milligrams per litre; and
(b) goods that are classified to item 11 of the Schedule as denatured ethanol for use as fuel in an internal combustion engine;
with or without other substances, is worked out using the formula:
where:
blending rate means the maximum excise duty rate applicable to gasoline classified to item 11 of the Schedule and having a lead content not exceeding 13 milligrams per litre.
excise equivalent rate means so much of the rate of Customs duty applicable to goods on their importation into Australia as is equivalent to the rate of excise duty that would be payable on those goods if produced in Australia.
previously paid duties means the sum of the following (worked out in accordance with subsection (4), if applicable):
(a) the excise duties (if any) that have already been paid on the goods that are constituent elements of the excisable blended petroleum product and that are classified to item 11, 12 or 15 of the Schedule;
(b) to the extent that Customs duties have been paid on imported goods that are constituent elements of the excisable blended petroleum product and that would have been classified to item 11, 12 or 15 of the Schedule if produced in Australia—so much of the Customs duties paid on those imported goods as represents the application of the excise equivalent rate in relation to those imported goods.
volume means the volume of the excisable blended petroleum product.
3 Paragraph 6G(4)(b)
Omit “2,”.
4 Paragraph 6G(4)(c)
After “11”, insert “, 12”.
5 Schedule (subitem 2(R))
Repeal the subitem.
6 Item 11 of the Schedule (at the end of paragraphs (a) and (b) of the description of goods covered by the item)
Add “and”.
7 Item 11 of the Schedule (at the end of the description of goods covered by the item)
Add:
| ; and (e) denatured ethanol for use as fuel in an internal combustion engine. | |
8 At the end of item 11 of the Schedule
Add:
(K) | Denatured ethanol for use as fuel in an internal combustion engine | $0.38143 per litre |
[Minister’s second reading speech made in—
House of Representatives on 29 May 2003
Senate on 24 June 2003]
Overview
The Excise Tariff Amendment Act (No. 1) 2004 was enacted by the Parliament of Australia to amend the Excise Tariff Act 1921, addressing specific fiscal and regulatory gaps within the excise framework related to blended petroleum products. The Act, assented to on 21 April 2004, commenced on 18 September 2002, and involves detailed amendments to the Excise Tariff Act 1921, including changes to definitions, duty calculation formulas, and specific rates for excise on denatured ethanol. The policy objective appears to be to ensure accurate and fair taxation on blended petroleum products, reflecting changes in product composition and usage, and to streamline the duty calculation process for these goods.
Scope and Application
The Excise Tariff Amendment Act (No. 1) 2004 amends the Excise Tariff Act 1921, applying to entities and individuals involved in the production, importation, or blending of excisable petroleum products for use in internal combustion engines. The Act’s amendments specifically target the calculation of excise duty on blended petroleum products, including those containing denatured ethanol and petrol with a lead content not exceeding 13 milligrams per litre. It applies across Australia, encompassing all states and territories, as it modifies a Commonwealth Act. The Act excludes other goods or blends not specified within its scope, ensuring that only the defined petroleum products are subject to the amended duty calculations. The application and interpretation of the Act may be further refined through subordinate legislation, allowing for detailed regulation and enforcement mechanisms to be established under the authority of the primary Act.
Key Provisions
The Excise Tariff Amendment Act (No. 1) 2004 primarily serves to amend the Excise Tariff Act 1921, introducing specific changes to the duty calculations for certain blended petroleum products. The main operative sections include modifications to subsection 6G(1) and (2), the addition of definitions and formulae for duty calculations on excisable blended petroleum products (Section 1 and 2), and adjustments to the Schedule, particularly item 11, to incorporate new classifications and duty rates (Sections 5 to 8). These amendments focus on ensuring that the excise duties for certain fuel products are accurately calculated based on new criteria and rates.
The obligations imposed by this Act on the parties or entities it governs primarily revolve around compliance with the new duty calculations and classifications. Manufacturers, importers, and other entities involved in the production or importation of excisable blended petroleum products must now adhere to the revised definitions and formulae set out in the Act. This includes correctly identifying the constituent elements of the products, calculating the duty based on the new blending rate and excise equivalent rate, and ensuring that any previously paid duties are accurately accounted for. Furthermore, these entities must update their records and reporting mechanisms to reflect the changes mandated by the Act.
Failure to comply with the provisions of the Excise Tariff Amendment Act (No. 1) 2004 may result in various civil and criminal consequences. The specific penalties for breaches of excise duties are outlined in the Excise Act 1901. Generally, penalties can include fines that are significant, often proportional to the value of the goods involved in the offence. For instance, for each day that a contravention continues, a fine may be imposed, and in some cases, maximum penalties can escalate to thousands of Australian dollars. Additionally, persistent or severe breaches may lead to criminal charges, resulting in further penalties including imprisonment, depending on the severity and frequency of the infringements.