Fuel Sale (Penalty Surcharge) Act 1997

Overview

The Fuel Sale (Penalty Surcharge) Act 1997 was enacted by the Parliament of Australia to address issues related to the evasion of fuel excise by imposing a penalty surcharge on the sale of marked fuel intended for use in internal combustion engines. This Act was designed to complement the provisions set out in the Fuel (Penalty Surcharges) Administration Act 1997. The policy objective of this legislation was to ensure compliance with the notification requirements for the sale of marked fuel, thereby discouraging the evasion of fuel excise. Under this Act, a penalty surcharge is imposed on the sale of marked fuel if the seller fails to provide the required written notification to the person acquiring the fuel, as stipulated by the Administration Act. The surcharge is payable by the owner of the fuel at the time of sale, and the rate of this surcharge is set at twice the maximum diesel rate. It is important to note that this Act was repealed by the Petroleum Excise Amendment (Measures to Address Evasion) Act 2006 on 1 July 2006.

Scope and Application

The Fuel Sale (Penalty Surcharge) Act 1997 applies to the imposition of a penalty surcharge on the sale of marked fuel intended for use in an internal combustion engine. The Act specifically targets the sale of such fuel and imposes a surcharge on the person who owns the fuel immediately prior to its sale, provided that the seller failed to give the purchaser a written notification as required by the Fuel (Penalty Surcharges) Administration Act 1997. The surcharge is payable at a rate that is twice the maximum diesel rate per litre of fuel. The Act does not extend to any of the External Territories and does not bind the Crown in right of Norfolk Island. It is pertinent to note that this Act was repealed by the Excise Tariff (Repeal and Consequential Amendments) Act 2006, effective from 1 July 2006. The application of the Act may be further detailed or modified through subordinate instruments such as regulations or administrative rules enacted under the Act.

Key Provisions

The Fuel Sale (Penalty Surcharge) Act 1997 (section 5) imposes a penalty surcharge on the sale of marked fuel intended for use in internal combustion engines. A person is considered to have sold such marked fuel if they failed to provide a written notification to the buyer as mandated by section 16 of the Fuel (Penalty Surcharges) Administration Act 1997. The owner of the fuel immediately before its sale is responsible for paying this penalty surcharge (section 6). Under the Act, the Crown is bound by the legislation in all its capacities, except when acting in right of Norfolk Island (section 4(2)). The Act does not apply to any of the External Territories (section 4(1)). The rate of the penalty surcharge is set at twice the maximum diesel rate per litre of fuel on which it is imposed (section 7). Any breach of the Act's provisions is subject to potential civil or criminal consequences. However, the specific details of these consequences are not provided within the Act itself. The maximum penalties for any offences related to the breach of this Act would be outlined in the associated Administration Act or other relevant legislation. It is important for parties governed by this Act to adhere to its requirements to avoid any legal repercussions.