Excise (Volume - recycled waste oil) Determination 2016 (No.1)

Overview

The Excise (Volume—recycled waste oil) Determination 2016 (No. 1) was enacted to provide clear rules for determining the volume of recycled waste oil used by licensed manufacturers. This legislation was introduced to address the need for accurate volume measurements in the recycling process, ensuring that the correct amount of excise duty is levied on the excisable goods. The determination was made under section 65 of the Excise Act 1901 and replaces the previous Excise (Volume—recycled waste oil) Determination 2006 (No. 2). The policy objective is to enhance administrative certainty for manufacturers who recycle waste oil, allowing for the use of calibrated flow meters and formulas for volume measurement, thereby ensuring compliance with excise obligations. The determination stipulates that where recycled waste oil is consumed in the manufacturer's enterprise, alternative methods for volume measurement can be employed, such as using a calibrated flow meter or a formula based on historical output data. This approach accommodates the practicalities of the recycling process, where oil may not be stored in calibrated tanks or containers. The impact of this legislation is minimal in terms of compliance costs, as it is considered minor or machinery in nature. Public consultation was conducted, with no comments received on the exposure draft. This determination ensures that excise duties are accurately calculated, maintaining compliance and administrative efficiency within the industry.

Scope and Application

The Excise (Volume—recycled waste oil) Determination 2016 (No.1) applies to licensed manufacturers who recycle waste oil for consumption in their own enterprises. This instrument operates within the framework of the Excise Act 1901 and the Excise Tariff Act 1921, and is intended to clarify the methods by which the volume of recycled waste oil is calculated, which in turn determines the amount of excise duty payable on these goods. The determination is a restatement of the previous instrument, the Excise (Volume – recycled waste oil) Determination 2006 (No. 2), which is scheduled to be repealed on 1 October 2016. The new determination provides rules for measuring the volume of recycled waste oil using methods such as properly calibrated flow meters or formulas based on historical output data, and it comes into effect the day after registration. The determination aims to provide administrative certainty and minimise compliance costs, as it is considered minor or machinery in nature with no or minimal impacts on both implementation and ongoing compliance. The instrument does not engage any applicable rights or freedoms as it is deemed compatible with human rights.

Key Provisions

The Excise (Volume—recycled waste oil) Determination 2016 (No.1) (the "Determination") provides rules for calculating the volume of recycled waste oil that is considered an excisable good, as per Section 65 of the Excise Act 1901 (the "Excise Act"). This Determination revokes and replaces the Excise (Volume—recycled waste oil) Determination 2006 (No.2), which is set to be repealed under the sunsetting provisions in the Legislation Act 2003 (the "Legislation Act"). The Determination commences the day after its registration and is intended to ensure that the correct amount of excise duty is paid by establishing acceptable methods for measuring the volume of recycled waste oil produced and consumed by a licensed manufacturer. The Determination imposes obligations on licensed manufacturers of recycled waste oil to accurately determine the volume of their excisable goods. This is to ensure that the correct amount of excise duty is paid, which is calculated by multiplying the volume of the excisable goods by the applicable rate of duty. Licensed manufacturers are required to use methods such as properly calibrated flow meters or formulas that calculate output based on historical output from similar feedstock to measure the volume of recycled waste oil. A formula used must accurately reflect the volume of output and should be reassessed for accuracy where there is a change in recycling equipment, processes, or the nature or source of the feedstock waste oil. The Determination does not outline specific offences, penalties, or civil/criminal consequences for non-compliance. However, it is implied that failure to comply with the rules for measuring the volume of recycled waste oil and calculating the applicable excise duty could result in penalties under the Excise Act and associated regulations. The Excise Act generally provides for civil and criminal penalties for non-compliance, including fines and imprisonment, depending on the severity of the breach. The Determination aims to provide greater administrative certainty around the rules for measuring the volume of excisable goods in these circumstances. It is considered to be minor or machinery in nature, with minimal impacts for both implementation and ongoing compliance costs. The Determination was subject to consultation, and no comments were received during the public consultation process. The Determination is compatible with human rights as it does not raise any human rights issues, given its minor or machinery nature.