Excise Tariff Amendment (Aviation Fuel Revenues) Act 1999

Overview

The Excise Tariff Amendment (Aviation Fuel Revenues) Act 1999 was enacted by the Parliament of Australia to address the issue of revenue generation from aviation fuel excise. This legislation amends the Excise Tariff Act 1921, specifically targeting the excise rates on aviation fuel to ensure that the taxation system appropriately reflects the use of kerosene for aircraft fuel. The policy objective is to maintain and potentially enhance revenue from excise on aviation fuel, ensuring that the revenue generated supports broader fiscal objectives while maintaining a fair tax structure on fuel used in aviation. The Act received Royal Assent on 16 July 1999 and commenced on that date, with specific amendments to the Excise Tariff Act 1921 taking effect from 12 May 1999. This legislative change was aimed at updating the excise rates to reflect current economic and operational realities within the aviation industry.

Scope and Application

The Excise Tariff Amendment (Aviation Fuel Revenues) Act 1999 is a piece of legislation designed to modify the Excise Tariff Act 1921, specifically targeting the excise duties on aviation fuel. This Act applies to individuals and entities involved in the supply or use of kerosene for aviation purposes within Australia. It sets the excise rate for kerosene used as a fuel in aircraft at $0.02710 per litre, effective from 12 May 1999. The geographic reach of this Act is national, applying across all states and territories within Australia. The Act repeals and substitutes specific subitems in the Excise Tariff Act 1921 to reflect the updated excise rates for aviation fuel, and its amendments commence on the date of Royal Assent, with certain provisions taking effect from 12 May 1999. There are no specific exclusions or exemptions mentioned in the Act itself, though further regulations and interpretations might be developed through subordinate instruments.

Key Provisions

The Excise Tariff Amendment (Aviation Fuel Revenues) Act 1999 (Act) amends the Excise Tariff Act 1921 to adjust the excise rates for aviation fuel. Specifically, Section 1 of Schedule 1 repeals the existing subitem and substitutes a new rate for kerosene used as fuel in aircraft, setting it at $0.02710 per litre (subitem 11(A)). Similarly, sub-paragraphs 11(H)(1)(a) and 11(H)(2)(a) are repealed and replaced with the same rate for aviation fuel (sub-paragraphs 11(H)(1)(a) and 11(H)(2)(a)). These changes were effective from 12 May 1999, as specified in the commencement clause (section 2). The Act imposes obligations on entities involved in the supply and use of aviation fuel. Suppliers of kerosene for use in aircraft must now charge the new excise rate of $0.02710 per litre, as outlined in the amended Schedule 1. This amendment requires entities to update their pricing structures and ensure compliance with the new excise rate. Furthermore, those entities must keep accurate records of transactions involving aviation fuel to facilitate compliance and reporting under the Excise Tariff Act 1921. Breaches of the excise rates and other provisions of the Excise Tariff Act 1921 may result in civil or criminal penalties. For instance, under section 20 of the Excise Tariff Act 1921, a person who contravenes any provision of the Act can be subject to a penalty. The maximum penalty for a corporation is generally 10,000 penalty units, while for an individual, it is 1,000 penalty units. These penalties reflect the seriousness of non-compliance and serve as a deterrent against evasion or incorrect application of the excise rates.