Excise Tariff Amendment (Fuel Indexation) Act 2015

Administered by Department of the Treasury

Legislation au C2015A00101 In force Act

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Excise Tariff Amendment (Fuel Indexation) Act 2015

 

No. 101, 2015

 

 

 

 

 

An Act to amend the law relating to excise tariffs, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Incorporation of Tariff Proposals

Part 1—Increase in fuel duty rates on 10 November 2014

Excise Tariff Act 1921

Part 2—Indexation

Excise Tariff Act 1921

Part 3—Consequential amendments to enacted changes to alternative fuels

Excise Tariff Act 1921

Schedule 2—Consequential amendments for ethanol and biodiesel

Excise Tariff Act 1921

 

 

 

Excise Tariff Amendment (Fuel Indexation) Act 2015

No. 101, 2015

 

 

 

An Act to amend the law relating to excise tariffs, and for related purposes

[Assented to 30 June 2015]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Excise Tariff Amendment (Fuel Indexation) Act 2015.

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.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

30 June 2015

2.  Schedule 1, Part 1

10 November 2014.

10 November 2014

3.  Schedule 1, Part 2

31 January 2015.

31 January 2015

4.  Schedule 1, Part 3

1 July 2015.

1 July 2015

5.  Schedule 2

Immediately after the commencement of Schedule 1 to the Excise Tariff Amendment (Ethanol and Biodiesel) Act 2015.

1 July 2015

Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Incorporation of Tariff Proposals

Part 1—Increase in fuel duty rates on 10 November 2014

Excise Tariff Act 1921

1  Subsection 6G(1) (method statement, step 3)

Omit “$0.38143”, substitute “$0.386”.

2  Schedule (cell at table subitem 10.1, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

3  Schedule (cell at table subitem 10.2, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

4  Schedule (cell at table subitem 10.3, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

5  Schedule (cell at table subitem 10.5, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

6  Schedule (cell at table subitem 10.10, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

7  Schedule (cell at table subitem 10.15, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

8  Schedule (cell at table subitem 10.16, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

9  Schedule (cell at table subitem 10.18, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

10  Schedule (cell at table subitem 10.19A, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.101 per litre

11  Schedule (cell at table subitem 10.19B, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.212 per kilogram

12  Schedule (cell at table subitem 10.19C, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.212 per kilogram

13  Schedule (cell at table subitem 10.20, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

14  Schedule (cell at table subitem 10.21, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

15  Schedule (cell at table subitem 10.25, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

16  Schedule (cell at table subitem 10.26, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

17  Schedule (cell at table subitem 10.27, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

18  Schedule (cell at table subitem 10.28, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

19  Application of amendments

The amendments made by this Part apply to goods manufactured or produced in Australia on or after 10 November 2014 and to goods for which all the following conditions are met:

 (a) the goods were manufactured or produced in Australia before 10 November 2014;

 (b) on 10 November 2014, the goods either were 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;

 (c) no duty of excise had been paid on the goods before 10 November 2014.

Part 2—Indexation

Excise Tariff Act 1921

20  Section 6A (heading)

Repeal the heading, substitute:

6A  Indexation of CPI indexed rates

21  Subsection 6A(1)

Omit “each rate of duty set out in item 1, 2 or 3 of the Schedule (each alcohol duty rate) is”, substitute “each CPI indexed rate is”.

22  Subsection 6A(1) (formula)

Repeal the formula, substitute:

23  Subsection 6A(1) (note)

Repeal the note, substitute:

Note: For indexation factor see subsection (3). For CPI indexed rate and indexation day see subsection (10).

24  Subsection 6A(2)

Omit “the alcohol duty rate”, substitute “the CPI indexed rate”.

25  Subsections 6A(5), (6), (8) and (9)

Omit “an alcohol duty rate”, substitute “a CPI indexed rate”.

26  Subsection 6A(10)

Insert:

CPI indexed rate means:

 (a) a rate of duty set out in item 1, 2 or 3 of the Schedule; or

 (b) a rate of duty set out in item 10 of the Schedule, other than in:

 (i) subitem 10.6 or 10.17; or

 (ii) subitem 10.7, 10.11, 10.12 or 10.30; or

 (c) the rate set out in step 3 of the method statement in subsection 6G(1) (about duty payable on blended goods).

27  After section 6A

Insert:

6AAA  Rounding of fuel duty rates

 (1) Despite subsection 6A(2), the amount to be worked out under subsection 6A(1) in respect of an indexation day for a CPI indexed rate covered by subsection (3) of this section is to be rounded to 3 decimal places (rounding up if the next decimal place is 5 or more).

 (2) For the purposes of section 6A, determine the CPI indexed rate on the day before the indexation day as mentioned in subsection 6A(1) on the assumptions that:

 (a) the operation of subsection (1) of this section was disregarded in respect of all previous indexation days (if any); and

 (b) subsection 6A(2) permitted amounts worked out under subsection 6A(1) in respect of those indexation days to be rounded to 5 decimal places (rounding up if the next decimal place was 5 or more).

 (3) This subsection covers the following CPI indexed rates:

 (a) a rate of duty set out in item 10 of the Schedule, other than in:

 (i) subitem 10.6 or 10.17; or

 (ii) subitem 10.7, 10.11, 10.12 or 10.30;

 (b) the rate set out in step 3 of the method statement in subsection 6G(1) (about duty payable on blended goods).

 (4) In this section:

CPI indexed rate has the same meaning as in section 6A.

indexation day has the same meaning as in section 6A.

28  Subsection 6G(1) (method statement, step 1)

After “would”, insert “, at the time the duty on the blended goods is payable,”.

29  Subsection 6G(1) (method statement, at the end of step 3)

Add:

Note: The rate set out in this step is indexed under section 6A.

30  Application of amendments

The amendments made by this Part apply to goods manufactured or produced in Australia on or after 31 January 2015 and to goods for which all the following conditions are met:

 (a) the goods were manufactured or produced in Australia before 31 January 2015;

 (b) on 31 January 2015, the goods either were 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;

 (c) no duty of excise had been paid on the goods before 31 January 2015.

Part 3—Consequential amendments to enacted changes to alternative fuels

Excise Tariff Act 1921

31  After section 6E

Insert:

6FAA  Change in duty rate of certain liquefied petroleum gases, liquefied natural gases and compressed natural gases

 (1) This Act has effect as if, on 1 July 2015:

 (a) the rate of duty in subitem 10.19A of the Schedule is replaced by:

 (i) $0.126 per litre; or

 (ii) if the indexed rate worked out under subsection (2) is greater than $0.126 per litre—that indexed rate; and

 (b) the rate of duty in subitem 10.19B of the Schedule is replaced by:

 (i) $0.2644 per kilogram; or

 (ii) if the indexed rate worked out under subsection (2) is greater than $0.2644 per kilogram—that indexed rate; and

 (c) the rate of duty in subitem 10.19C of the Schedule is replaced by:

 (i) $0.2644 per kilogram; or

 (ii) if the indexed rate worked out under subsection (2) is greater than $0.2644 per kilogram—that indexed rate.

 (2) To work out the indexed rate, index the rate mentioned in paragraph (1)(a), (b) or (c) (as applicable) on 1 February 2015 under section 6A, on the assumptions that:

 (a) the rate is a CPI indexed rate for the purposes of that section; and

 (b) the amount of that rate on the day before 1 February 2015 is the amount set out in subparagraph (1)(a)(i), (b)(i) or (c)(i) (as applicable).

32  Application of amendments

The amendments made by this Part apply to goods manufactured or produced in Australia on or after 1 July 2015 and to goods for which all the following conditions are met:

 (a) the goods were manufactured or produced in Australia before 1 July 2015;

 (b) on 1 July 2015, the goods either were 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;

 (c) no duty of excise had been paid on the goods before 1 July 2015.

Schedule 2—Consequential amendments for ethanol and biodiesel

 

Excise Tariff Act 1921

1  Subsection 6A(10) (subparagraph (b)(ii) of the definition of CPI indexed rate)

Repeal the subparagraph, substitute:

 (ii) subitem 10.7, 10.12, 10.20, 10.21 or 10.30; or

2  Subparagraph 6AAA(3)(a)(ii)

Repeal the subparagraph, substitute:

 (ii) subitem 10.7, 10.12, 10.20, 10.21 or 10.30;

3  Subsection 6H(1) (at the end of the note)

Add “That rate is indexed under section 6A.”.

4  Subsection 6J(1) (at the end of the note)

Add “That rate is indexed under section 6A.”.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 23 June 2015

Senate on 24 June 2015]

 

(122/15)

 

Overview

The Excise Tariff Amendment (Fuel Indexation) Act 2015 was enacted by the Parliament of Australia to amend the Excise Tariff Act 1921, primarily to address the need for adjusting fuel excise tariffs in response to inflation and other economic factors. The Act includes provisions for increasing fuel duty rates and establishing an indexation mechanism to adjust these rates periodically. The policy objective behind this legislation is to ensure that excise duties on fuel products remain fair and equitable, reflecting changes in the cost of living and economic conditions. This Act came into force on various dates from 10 November 2014 to 1 July 2015, depending on the specific provisions and their application to different categories of goods. The Excise Tariff Amendment (Fuel Indexation) Act 2015 makes several amendments to the Excise Tariff Act 1921 to introduce a more dynamic approach to setting fuel excise tariffs. The most notable changes include the replacement of fixed duty rates with indexed rates that adjust in line with the Consumer Price Index (CPI), thereby maintaining the real value of the excise over time. Additionally, the Act provides for the rounding of fuel duty rates to three decimal places, which simplifies the calculation and application of the duty. These amendments aim to ensure that excise duties are applied in a manner that is both responsive to economic changes and administratively efficient.

Scope and Application

The Excise Tariff Amendment (Fuel Indexation) Act 2015 amends the Excise Tariff Act 1921 to adjust excise tariffs for certain fuel products and implement indexation provisions. This Act applies to fuel products manufactured or produced in Australia. The amendments regarding the increase in fuel duty rates commenced on 10 November 2014, while the indexation provisions and consequential amendments for alternative fuels and ethanol and biodiesel commenced on 31 January 2015 and 1 July 2015 respectively. The amendments apply to goods manufactured or produced in Australia on or after the respective commencement dates, and to goods manufactured or produced before these dates but meeting specific conditions, such as being under the control of a manufacturer or producer on the relevant date and not having duty paid before that date. The Act does not explicitly state any exclusions or exemptions, but the application of the amendments is contingent upon the goods meeting the specified conditions. The Act allows for further regulation and specification through subordinate instruments, ensuring its provisions can be updated and refined as necessary.

Key Provisions

The Excise Tariff Amendment (Fuel Indexation) Act 2015 amends the Excise Tariff Act 1921 to adjust excise tariffs on various fuel products. Section 1 of the Act provides that the duty rate for petrol will be increased to $0.386 per litre, effective from 10 November 2014. Other fuel types such as diesel and liquefied petroleum gas also see their duty rates adjusted to $0.386 per litre or their equivalent measures, with these changes also taking effect from the same date. Section 6A of the Excise Tariff Act 1921 is amended to introduce a mechanism for the indexation of certain excise duty rates based on the Consumer Price Index (CPI), effective from 31 January 2015. The Act imposes specific obligations on manufacturers and producers of fuel products. Manufacturers and producers must ensure that excise duty is paid on fuel products manufactured or produced on or after the relevant commencement dates specified in the Act. For goods manufactured or produced before these dates but subject to the CEO's control or in the possession of a manufacturer or producer on these dates, duty must be paid if it had not been paid prior to the commencement date. Failure to comply with these obligations may result in legal consequences. The Act also introduces potential penalties and consequences for non-compliance. Offences under the Excise Tariff Act 1921 can lead to civil penalties, which may include fines. The maximum penalty for contravening the Act can be significant, depending on the nature and severity of the offence. Criminal penalties may also apply, including imprisonment, particularly for repeated or egregious breaches. The specific penalties are detailed in the Excise Tariff Act 1921 and may vary based on the circumstances of the breach.

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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.