Excise Tariff Amendment (Product Stewardship for Oil) Act 2023

Overview

The Excise Tariff Amendment (Product Stewardship for Oil) Act 2023 was enacted to address gaps in the management and environmental impact of oil products within Australia. This Act amends the Excise Tariff Act 1921 by adjusting the excise duties on certain oil products to better reflect the environmental costs associated with their production and use, while also supporting the implementation of a comprehensive product stewardship scheme. Enacted by the Parliament of Australia, the policy objective of this Act is to ensure that the financial burden of managing the environmental impact of oil products is borne by those responsible for their production and distribution. The Act aims to encourage more sustainable practices within the oil industry by aligning excise duties with the environmental footprint of these products.

Scope and Application

The Excise Tariff Amendment (Product Stewardship for Oil) Act 2023 amends the Excise Tariff Act 1921 to introduce specific product stewardship requirements for oil products within the Commonwealth of Australia. This Act applies to entities involved in the production, importation, and sale of oil products, ensuring that these entities adhere to the new duty rates and product stewardship obligations. The Act specifically modifies the duty rates for various oil products as outlined in the Excise Tariff Act 1921, setting a new rate of $0.142 per litre and $0.142 per kilogram for certain oil products. The application of this Act is limited to the Commonwealth jurisdiction, affecting entities and transactions within Australia's national borders. There are no stated exclusions or exemptions in this Act, meaning all entities involved in the specified oil products must comply with the new provisions. The scope of the Act may be further defined or extended through subordinate instruments issued under the authority of the Excise Tariff Act 1921.

Key Provisions

The Excise Tariff Amendment (Product Stewardship for Oil) Act 2023 primarily amends the Excise Tariff Act 1921 by introducing new product stewardship provisions for oil. Section 1 of the Act specifies that the rate of duty for oil will now be $0.142 per litre or per kilogram, replacing the previous rates detailed in the Excise Tariff Act 1921. This change is detailed in Schedule 1, which amends the Excise Tariff Act 1921 by repealing and substituting certain cells in the table concerning the rate of duty for oil (subsections 15.1, 15.2, 15.3, and 15.4 of the Schedule). The Act imposes several obligations on parties involved in the production, importation, or sale of oil. Firstly, it requires that these parties adhere to the new rate of duty specified in the amended Act. Secondly, the Act introduces new product stewardship obligations, which may include requirements for the proper disposal, recycling, or management of oil to mitigate environmental impacts. These obligations are detailed in the amended Excise Tariff Act 1921, which now includes provisions for product stewardship. Breaching the provisions of the Act can result in various consequences. Under section 21 of the Excise Tariff Act 1921, failure to comply with the new rate of duty can lead to civil penalties. These penalties can include fines of up to $22,000 for individuals and $110,000 for corporations, as stipulated in section 21 of the Excise Tariff Act 1921. Additionally, the Act may impose criminal penalties for more severe breaches, such as deliberate non-compliance with product stewardship obligations. The maximum penalty for these criminal offences can include imprisonment for up to two years, as outlined in section 22 of the Excise Tariff Act 1921. These penalties serve as deterrents to ensure compliance with the new legislation.