Excise Tariff Amendment (Cost of Living Support) Act 2022

Administered by Department of the Treasury

Legislation au C2022A00015 In force Act

Legislation content

 

 

 

 

 

 

Excise Tariff Amendment (Cost of Living Support) Act 2022

 

No. 15, 2022

 

 

 

 

 

An Act to amend the Excise Tariff Act 1921, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Excise Tariff Act 1921

 

 

Excise Tariff Amendment (Cost of Living Support) Act 2022

No. 15, 2022

 

 

 

An Act to amend the Excise Tariff Act 1921, and for related purposes

[Assented to 31 March 2022]

The Parliament of Australia enacts:

1  Short title

  This Act is the Excise Tariff Amendment (Cost of Living Support) Act 2022.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day this Act receives the Royal Assent.

31 March 2022

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendments

 

Excise Tariff Act 1921

1  After section 6J

Insert:

6K  Temporary reduction—CPI indexed fuel rates

Temporary rate reduction

 (1) Despite any other provision of this Act, each CPI indexed fuel rate is, during a rate reduction period, a rate equal to 50% of the rate that it would have been during that period apart from this section (including because of the operation of section 6A).

Note: For CPI indexed fuel rate and rate reduction period, see subsection (8).

 (2) An amount worked out under subsection (1) is to be rounded to 3 decimal places (rounding up if the next decimal place is 5 or more).

 (3) A CPI indexed fuel rate that applies under subsection (1) during a rate reduction period applies to:

 (a) goods manufactured or produced in Australia during that period; and

 (b) goods manufactured or produced in Australia before the start of that period if:

 (i) at the start of the period, the goods were either subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

 (ii) no duty of excise had been paid on the goods before the start of the period.

 (4) Subsection (3) has effect despite subsection 5(2).

Restoration of rates

 (5) This Act has effect as if, on 29 September 2022, each CPI indexed fuel rate is a rate equal to the rate that it would have been on the August adjustment day apart from subsection (1) (including because of the operation of section 6A).

Note 1: For August adjustment day, see subsection (8).

Note 2: A rate that applies under this subsection is subject to later indexation under section 6A.

 (6) A CPI indexed fuel rate that applies under subsection (5) applies to:

 (a) goods manufactured or produced in Australia on or after 29 September 2022; and

 (b) goods manufactured or produced in Australia before 29 September 2022 if:

 (i) on 29 September 2022, the goods were either subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

 (ii) no duty of excise had been paid on the goods before 29 September 2022.

 (7) Subsection (6) has effect despite subsection 5(2).

Definitions

 (8) In this section:

August adjustment day means the following:

 (a) 1 August 2022, unless paragraph (b) applies;

 (b) if, in relation to the indexation day that is 1 August 2022, the replacement under section 6A of a rate of duty happens on another day in accordance with subsection 6A(5)—that other day.

CPI indexed fuel rate means a rate covered by paragraph (b) or (c) of the definition of CPI indexed rate in subsection 6A(10).

rate reduction period: each of the following is a rate reduction period:

 (a) the period beginning on 30 March 2022 and ending at the end of the day before the August adjustment day;

 (b) the period beginning on the August adjustment day and ending at the end of 28 September 2022.

6L  Temporary reduction—rates of duty payable under item 15 of the Schedule

Temporary rate reduction

 (1) This Act has effect as if on 30 March 2022:

 (a) the rates of duty under subitems 15.1 and 15.2 of the Schedule are $0.043 per litre; and

 (b) the rates of duty under subitems 15.3 and 15.4 of the Schedule are $0.043 per kilogram.

 (2) A rate of duty that applies under subsection (1) applies to:

 (a) goods manufactured or produced in Australia on or after 30 March 2022; and

 (b) goods manufactured or produced in Australia before 30 March 2022 if:

 (i) on 30 March 2022, the goods were either subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

 (ii) no duty of excise had been paid on the goods before 30 March 2022.

 (3) Subsection (2) has effect despite subsection 5(2).

Restoration of rates

 (4) This Act has effect as if on 29 September 2022:

 (a) the rates of duty under subitems 15.1 and 15.2 of the Schedule are $0.085 per litre; and

 (b) the rates of duty under subitems 15.3 and 15.4 of the Schedule are $0.085 per kilogram.

 (5) A rate of duty that applies under subsection (4) applies to:

 (a) goods manufactured or produced in Australia on or after 29 September 2022; and

 (b) goods manufactured or produced in Australia before 29 September 2022 if:

 (i) on 29 September 2022, the goods were either subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

 (ii) no duty of excise had been paid on the goods before 29 September 2022.

 (6) Subsection (5) has effect despite subsection 5(2).

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 30 March 2022

Senate on 30 March 2022]

 

(48/22)

 

Overview

The Excise Tariff Amendment (Cost of Living Support) Act 2022 was enacted by the Parliament of Australia to address the problem of rising living costs, particularly in relation to fuel prices, by temporarily reducing excise duties on fuel. This Act amends the Excise Tariff Act 1921 to introduce a temporary reduction in excise rates for certain fuel products. The policy objective of the Act is to provide relief to consumers and businesses by lowering the cost of fuel, thereby contributing to the support of the cost of living. The Act specifies a temporary reduction period from 30 March 2022 until 28 September 2022, after which the excise rates are set to revert to their original levels. The whole Act commenced on 31 March 2022, the day it received Royal Assent.

Scope and Application

The Excise Tariff Amendment (Cost of Living Support) Act 2022 amends the Excise Tariff Act 1921, aiming to provide relief to the community by temporarily reducing excise duties on certain goods. This Act applies to all persons and entities involved in the manufacture or production of goods subject to excise duties in Australia, including those who hold such goods in stock or under their control at specific times during the rate reduction periods. The geographic reach of this Act is limited to the Commonwealth of Australia, as it pertains to duties that are federally administered. The Act includes specific provisions for the temporary reduction of CPI indexed fuel rates and rates of duty payable under item 15 of the Schedule, reducing these rates by 50% during the specified rate reduction periods, which run from 30 March 2022 to 28 September 2022, with rates set to be restored from 29 September 2022. The Act does not explicitly state any exclusions or exemptions, but the temporary reductions are applied to goods manufactured or produced in Australia during the specified periods, and certain conditions must be met for the reduced rates to apply to goods manufactured or produced before the commencement of the rate reduction periods. The Act's provisions are effective from the day it receives Royal Assent, which was 31 March 2022, and it may be further extended or restricted through subordinate instruments as deemed necessary.

Key Provisions

The Excise Tariff Amendment (Cost of Living Support) Act 2022 amends the Excise Tariff Act 1921 by reducing the excise duty on certain fuel products and other goods. Section 6K introduces a temporary reduction to CPI-indexed fuel rates, setting them at 50% of what they would have been during a specified rate reduction period. This reduction applies to goods manufactured or produced in Australia during the specified period, or if they were in the control of a manufacturer or producer at the start of the period and no duty had been paid. The temporary reduction is in effect from 30 March 2022 until the end of 28 September 2022. Section 6L reduces the rates of duty payable under certain items in the Schedule to the Excise Tariff Act 1921. For example, the duty on petrol and diesel is reduced to $0.043 per litre from 30 March 2022, and the duty on other goods is similarly reduced. The Excise Tariff Amendment (Cost of Living Support) Act 2022 imposes obligations on manufacturers and producers of the affected goods to ensure compliance with the reduced excise duty rates during the specified period. They must also ensure that goods manufactured or produced before the commencement of the rate reduction period and held in stock or under their control are subject to the temporary duty rates if no duty has been paid prior to the commencement date. These entities must maintain records and documentation to substantiate the excise duty paid or payable on the goods in accordance with the Act. Failure to comply with the excise duty provisions under the Excise Tariff Amendment (Cost of Living Support) Act 2022 may result in criminal and civil penalties. For instance, knowingly or recklessly making a false statement or representation in relation to excise duty can lead to a penalty of up to 10,000 penalty units or imprisonment for up to five years, or both, under section 136 of the Excise Act 1901. Additionally, the Commissioner of the Australian Taxation Office may impose penalties for non-compliance with excise duty obligations, including penalties for late lodgment of excise duty returns, failure to pay excise duty, and other related offences. The specific penalties are outlined in the Excise Act 1901 and the Excise Tariff Act 1921.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards

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.