Excise Tariff Amendment (Fuels) Act 2004

Administered by Department of the Treasury

Legislation au C2004A01300 In force Act

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Excise Tariff Amendment (Fuels) Act 2004

 

No. 66, 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

Part 1—Amendments providing different excise duty rates for diesel and other fuels by reference to their sulphur content

Part 2—Amendments increasing the excise duty rate on diesel and other fuels that have a high sulphur content

Part 3—Amendments increasing the excise duty rate on aviation fuels

Part 4—Amendments providing for an excise duty rate on biodiesel

Part 5—Other amendments

Schedule 2—Further amendments of the Excise Tariff Act 1921 to commence only if the Excise Tariff Amendment Act (No. 1) 2004 commences

Part 1—Amendments relating to the amendments made by Part 1 of Schedule 1 to this Act

Part 2—Amendments relating to the amendments made by Part 4 of Schedule 1 to this Act

 

 

 

Excise Tariff Amendment (Fuels) Act 2004

No. 66, 2004

 

 

 

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

[Assented to 22 June 2004]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Excise Tariff Amendment (Fuels) Act 2004.

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

Provision(s)

Commencement

Date/Details

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

The day on which this Act receives the Royal Assent.

22 June 2004

2.  Part 1 of Schedule 1

1 July 2003.

1 July 2003

3.  Part 2 of Schedule 1

1 January 2004.

1 January 2004

4.  Part 3 of Schedule 1

1 July 2003.

1 July 2003

5.  Part 4 of Schedule 1

18 September 2003.

18 September 2003

6.  Part 5 of Schedule 1

The day on which this Act receives the Royal Assent.

However, if the Excise Tariff Amendment Act (No. 1) 2004 commences or has commenced, the provision(s) do not commence, and are taken never to have commenced, at all.

Does not commence

7.  Part 1 of Schedule 2

The provision(s) do not commence at all unless the Excise Tariff Amendment Act (No. 1) 2004 commences, in which case the provision(s) are taken to have commenced immediately after the commencement of the provision(s) covered by table item 2.

1 July 2003

8.  Part 2 of Schedule 2

The provision(s) do not commence at all unless the Excise Tariff Amendment Act (No. 1) 2004 commences, in which case the provision(s) are taken to have commenced immediately after the commencement of the provision(s) covered by table item 5.

18 September 2003

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

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

Part 1—Amendments providing different excise duty rates for diesel and other fuels by reference to their sulphur content

1  Subsection 6G(1)

Omit “subsection (2) or (3)”, substitute “subsection (2), (2B) or (3)”.

2  Subsection 6G(1) (paragraph (b) of the definition of blending rate)

Repeal the paragraph, substitute:

 (b) if no goods included in subparagraph (a)(i) or (ii) are included in the excisable blended petroleum product and it is not an excisable blended petroleum product to which paragraph (c) applies:

 (i) unless subparagraph (ii) applies—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that exceeds 50 parts per million; or

 (ii) if the Collector is satisfied that the sulphur content of the excisable blended petroleum product does not exceed 50 parts per million—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that does not exceed 50 parts per million; or

3  Subsection 6G(1A)

Repeal the subsection.

4  After subsection 6G(2)

Insert:

 (2A) Subsection (2) does not apply to an excisable blended petroleum product to which subsection (2B) applies.

 (2B) Duty payable under this Act on an excisable blended petroleum product, being a blend of:

 (a) goods that are classified to item 11 of the Schedule as diesel; and

 (b) goods that are classified to item 2 of the Schedule as denatured ethanol for use in an internal combustion engine, as prescribed by by‑law;

with or without other substances, is worked out using the formula:

where:

diesel rate means:

 (a) unless paragraph (b) applies—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that exceeds 50 parts per million; and

 (b) if the Collector is satisfied that the sulphur content of the excisable blended petroleum product does not exceed 50 parts per million—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that does not exceed 50 parts per million.

ethanol rate means the rate of excise duty applicable to denatured ethanol classified to item 2 of the Schedule as denatured ethanol for use in an internal combustion engine, as prescribed by by‑law.

previously paid duties means the sum of:

 (a) the excise duties (if any) that have already been paid on goods that are constituent elements of the excisable blended petroleum product and that are classified to item 2, 11, 12 or 15 of the Schedule; and

 (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;

worked out in accordance with subsection (4).

volume of diesel means the volume of diesel in the excisable blended petroleum product.

volume of ethanol means the volume of ethanol in the excisable blended petroleum product.

volume of other substances means the volume of substances (if any) in the excisable blended petroleum product that are not either diesel or ethanol.

5  Subsection 6G(3) (formula)

Repeal the formula, substitute:

6  Subsection 6G(3)

Insert:

diesel rate means:

 (a) unless paragraph (b) applies—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that exceeds 50 parts per million; and

 (b) if the Collector is satisfied that the sulphur content of the excisable blended petroleum product does not exceed 50 parts per million—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that does not exceed 50 parts per million.

7  Subparagraph 11(B)(1)(a) of the Schedule

Repeal the subparagraph, substitute:

 

 (a) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (aa) for use as fuel in an internal combustion engine and having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

8  Subparagraph 11(B)(2)(a) of the Schedule

Repeal the subparagraph, substitute:

 

 (a) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (aa) for use as fuel in an internal combustion engine and having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

9  Subparagraph 11(B)(2)(d) of the Schedule

Repeal the subparagraph, substitute:

 

 (d) other, having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (e) other, having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

10  Subitem 11(C) of the Schedule

Repeal the subitem, substitute:

(C)

  Diesel:

 

 

 (1) Having a sulphur content exceeding 50 parts per million, other than product falling to paragraph 11(C)(3)

$0.39143 per litre

 

 (2) Having a sulphur content not exceeding 50 parts per million, other than product falling to paragraph 11(C)(3)

$0.38143 per litre

 

 (3) Recycled product, on which Customs or Excise duty has been paid, recovered by a process not being a process of refining

Free

11  Paragraph 11(F)(1) of the Schedule

Repeal the paragraph, substitute:

 

 (1) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (1A) for use as fuel in an internal combustion engine and having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

12  Paragraph 11(F)(4) of the Schedule

Repeal the paragraph, substitute:

 

 (4) other, having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (5) other, having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

13  Paragraph 11(G)(2) of the Schedule

Repeal the paragraph, substitute:

 

 (2) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (2A) for use as fuel in an internal combustion engine and having a sulphur content not exceeding 50 parts per million

$0.38143 per litre

14  Paragraph 11(G)(5) of the Schedule

Repeal the paragraph, substitute:

 

 (5) other, having a sulphur content exceeding 50 parts per million

$0.39143 per litre

 

 (6) other, having a sulphur content not exceeding 50 parts per million

$0.38143 per litre


Part 2—Amendments increasing the excise duty rate on diesel and other fuels that have a high sulphur content

15  Subparagraph 11(B)(1)(a) of the Schedule

Repeal the subparagraph, substitute:

 

 (a) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.40143 per litre

16  Subparagraph 11(B)(2)(a) of the Schedule

Repeal the subparagraph, substitute:

 

 (a) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.40143 per litre

17  Subparagraph 11(B)(2)(d) of the Schedule

Repeal the subparagraph, substitute:

 

 (d) other, having a sulphur content exceeding 50 parts per million

$0.40143 per litre

18  Paragraph 11(C)(1) of the Schedule

Repeal the paragraph, substitute:

 

 (1) Having a sulphur content exceeding 50 parts per million, other than product falling to paragraph 11(C)(3)

$0.40143 per litre

19  Paragraph 11(F)(1) of the Schedule

Repeal the paragraph, substitute:

 

 (1) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.40143 per litre

20  Paragraph 11(F)(4) of the Schedule

Repeal the paragraph, substitute:

 

 (4) other, having a sulphur content exceeding 50 parts per million

$0.40143 per litre

21  Paragraph 11(G)(2) of the Schedule

Repeal the paragraph, substitute:

 

 (2) for use as fuel in an internal combustion engine and having a sulphur content exceeding 50 parts per million

$0.40143 per litre

22  Paragraph 11(G)(5) of the Schedule

Repeal the paragraph, substitute:

 

 (5) other, having a sulphur content exceeding 50 parts per million

$0.40143 per litre


Part 3—Amendments increasing the excise duty rate on aviation fuels

23  The rate of duty in subitem 11(A) of the Schedule

Repeal the rate, substitute “$0.03151 per litre”.

24  The rate of duty in subparagraph 11(H)(1)(a) of the Schedule

Repeal the rate, substitute “$0.03114 per litre”.

25  The rate of duty in subparagraph 11(H)(2)(a) of the Schedule

Repeal the rate, substitute “$0. 03114 per litre”.


Part 4—Amendments providing for an excise duty rate on biodiesel

26  Subsection 3(1)

Insert:

biodiesel means fuel:

 (a) for use in an internal combustion engine; and

 (b) manufactured by chemically altering vegetable oils or animal fats (including recycled oils from these sources) to form mono‑alkyl esters.

27  Subsection 6G(1)

After “(2B)”, insert “, (2C)”.

28  After subsection 6G(2B)

Insert:

 (2C) Duty payable under this Act on an excisable blended petroleum product containing a blend of:

 (a) goods that are classified to item 11 of the Schedule as biodiesel, or blends containing biodiesel classified to item 12 of the Schedule; and

 (b) goods that are classified to item 2, 11 or 12 of the Schedule (except gasoline);

with or without other substances, is worked out using the formula:

where:

biodiesel rate means the rate of excise duty applicable to goods that are classified to item 11 of the Schedule as biodiesel.

diesel rate means:

 (a) unless paragraph (b) applies—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that exceeds 50 parts per million; or

 (b) if the Collector is satisfied that the sulphur content of the total volume of substances in the excisable blended petroleum product that are not biodiesel or ethanol does not exceed 50 parts per million—the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that does not exceed 50 parts per million.

ethanol rate means the rate of excise duty applicable to denatured ethanol classified to item 2 of the Schedule as denatured ethanol for use in an internal combustion engine, as prescribed by by‑law.

previously paid duties means the sum of:

 (a) the excise duties (if any) that have already been paid on goods that are constituent elements of the excisable blended petroleum product and that are classified to item 2, 11, 12 or 15 of the Schedule; and

 (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;

worked out in accordance with subsection (4).

volume of biodiesel means the volume of biodiesel in the excisable blended petroleum product.

volume of ethanol means the volume of ethanol in the excisable blended petroleum product.

volume of other substances means the total volume of substances in the excisable blended petroleum product that are not biodiesel or ethanol.

29  Item 11 of the Schedule (at the end of the description of goods covered by the item)

Add:

 

 ; and (f) biodiesel.

 

30  At the end of item 11 of the Schedule

Add:

(L)

 Biodiesel

$0.38143 per litre


Part 5—Other amendments

31  Subsection 6G(2) (formula)

Repeal the formula, substitute:

32  Subsection 6G(2)

Insert:

previously paid duties means the sum of:

 (a) the excise duties (if any) that have already been paid on goods that are constituent elements of the excisable blended petroleum product and that are classified to item 2, 11 or 12 of the Schedule; and

 (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 or 12 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;

worked out in accordance with subsection (4).


Schedule 2—Further amendments of the Excise Tariff Act 1921 to commence only if the Excise Tariff Amendment Act (No. 1) 2004 commences

Part 1—Amendments relating to the amendments made by Part 1 of Schedule 1 to this Act

1  Paragraph 6G(2B)(b)

Omit “item 2”, substitute “item 11”.

2  Paragraph 6G(2B)(b)

Omit “, as prescribed by by‑law”.

3  Subsection 6G(2B) (definition of ethanol rate)

Omit “item 2”, substitute “item 11”.

4  Subsection 6G(2B) (definition of ethanol rate)

Omit “, as prescribed by by‑law”.

5  Subsection 6G(2B) (paragraph (a) of the definition of previously paid duties)

Omit “2, ”.


Part 2—Amendments relating to the amendments made by Part 4 of Schedule 1 to this Act

6  Paragraph 6G(2C)(b)

Omit “2, ”.

7  Subsection 6G(2C) (definition of ethanol rate)

Omit “item 2”, substitute “item 11”.

8  Subsection 6G(2C) (definition of ethanol rate)

Omit “, as prescribed by by‑law”.

9  Subsection 6G(2C) (paragraph (a) of the definition of previously paid duties)

Omit “2, ”.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 1 April 2004

Senate on 15 June 2004]

(44/04)

 

Overview

The Excise Tariff Amendment (Fuels) Act 2004 (Cth) was enacted by the Parliament of Australia to address the need for differentiated excise duty rates based on the sulphur content of diesel and other fuels, thereby encouraging the use of lower sulphur fuels that are less harmful to the environment. This legislation amends the Excise Tariff Act 1921 to introduce varying excise duty rates for fuels with different sulphur levels, increase the duty on high sulphur content fuels, adjust the duty on aviation fuels, and establish a duty rate for biodiesel. The Act aims to align excise duties with environmental objectives, promoting cleaner fuels and supporting the transition to more sustainable fuel options. The commencement of certain provisions is contingent on the Excise Tariff Amendment Act (No. 1) 2004, ensuring coordinated implementation of related amendments.

Scope and Application

The Excise Tariff Amendment (Fuels) Act 2004 amends the Excise Tariff Act 1921 and applies to various petroleum products, including diesel, aviation fuels, and biodiesel, based on their sulphur content and use. The Act establishes different excise duty rates for these fuels, particularly focusing on sulphur content, which affects environmental impact and emissions. It applies to entities involved in the production, importation, and blending of these fuels within Australia. The Act's provisions commenced at various dates, with some contingent upon the commencement of the Excise Tariff Amendment Act (No. 1) 2004. The Act does not include explicit exclusions or exemptions, but the duties are specifically tailored to the characteristics and uses of the fuels, thereby indirectly excluding certain products not covered by the amendments. The Act also allows for further amendments through subordinate instruments, which could adjust the rates or extend the scope of application as needed.

Key Provisions

The Excise Tariff Amendment (Fuels) Act 2004 amends the Excise Tariff Act 1921 by adjusting excise duty rates for various fuels based on their sulphur content and introducing a new excise duty rate for biodiesel. Under Part 1 of Schedule 1, the Act differentiates the excise duty rates for diesel and other fuels according to their sulphur content. It specifies that diesel with a sulphur content exceeding 50 parts per million will be taxed at a higher rate than diesel with a sulphur content not exceeding 50 parts per million. The Act also introduces a formula for calculating the duty on blended petroleum products, which include diesel and denatured ethanol, based on their respective sulphur contents and volumes. Part 2 of Schedule 1 increases the excise duty rates on diesel and other fuels that have a high sulphur content. Part 3 increases the excise duty rates on aviation fuels. Part 4 introduces an excise duty rate for biodiesel, defined as fuel for use in an internal combustion engine manufactured by chemically altering vegetable oils or animal fats. The Act further refines the calculation of duty on blended petroleum products containing biodiesel. The Excise Tariff Amendment (Fuels) Act 2004 imposes several obligations on fuel producers, importers, and distributors. They must ensure that the correct excise duty rates are applied based on the sulphur content of the fuels they produce or distribute. This includes distinguishing between fuels with sulphur content above and below 50 parts per million, and correctly applying the blended petroleum product formula when applicable. For aviation fuels and biodiesel, producers and distributors must adhere to the new excise duty rates specified in the Act. Compliance with these provisions requires accurate record-keeping and reporting of fuel production and distribution data to the relevant authorities. The Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaches. However, breaches of excise duty obligations under the Excise Tariff Act 1921 generally carry significant penalties. Typically, failure to comply with excise duty requirements can result in both civil and criminal penalties. Civil penalties may include the payment of outstanding duty, interest, and penalties, often calculated based on the amount of duty evaded and the degree of negligence. Criminal penalties can include fines and imprisonment, with the severity depending on the circumstances of the breach, such as intent, repetition, and the amount of duty evaded. For instance, under the Excise Act 1901, serious breaches can result in fines of up to $22,000 for individuals and up to $110,000 for corporations, along with potential imprisonment for up to five years.

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