2008
EXPLANATORY STATEMENT
Excise Tariff (Fields) Guidelines (Number 1) 2008
(Circulated by authority of the Minister for Resources and Energy
the Hon Martin Ferguson AM MP)
- Section 3A of the Excise Tariff Act 1921 empowers the 'Minister for Industry, Science and Resources', now the Minister for Resources and Energy, to make guidelines to be taken into account by the Commissioner of Taxation in making By-laws prescribing a field for the purposes of the definition of "exempt onshore field" and "exempt offshore field".
2. Crude oil excise applies onshore and in the North West Shelf project area, elsewhere offshore the Petroleum Resource Rent Tax applies. Excise is levied under the Excise Act on individual hydrocarbon fields which have a cumulative production in excess of 4767.3 megalitres (30 million barrels). A method must be used to delineate hydrocarbon fields so that each separate field is allocated its excise exempt first 30 million barrels. Currently Geoscience Australia (GA) advises the Minister based on a modified American Petroleum Institute Technical definition, which is used widely by industry and has been used consistently by GA in providing advice on field status for excise purposes. The modification involves consideration of a one kilometre horizontal separation between hydrocarbon pools, ie two accumulations which are separated by one kilometre or more are considered separate fields.
3. The Excise Tariff (Fields) Guidelines (Number 1) 2008 replaces the Excise Tariff (Fields) Guidelines ETFG 1/1997 which were the subject of consultation with industry. Due to the policy intent not being altered no industry consultation has been undertaken for this particular guideline. The only amendments are administrative and technical in nature.