Fuel Sales Grants Amendment Regulations 2001 (No. 1) 2001 No. 121
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 121
Issued by the authority of the Assistant Treasurer
Fuel Sales Grants Act 2000
Fuel Sales Grants Amendment Regulations 2001 (No. 1)
Section 9 of the Fuel Sales Grants Act 2000 (the Act) provides that the Governor-General may make regulations prescribing matters required to give effect to the Act.
The Act came into effect on 1 July 2000. The legislation was introduced for the purpose of maintaining fuel price relativities between metropolitan and non-metropolitan areas following the introduction of the goods and services tax and the contemporaneous reduction in the excise rate on fuel.
The principal Regulations specify that a grant rate of one cent per litre is payable for sales of petrol and diesel to consumers in non-metropolitan areas and that a grant rate of 2 cents per litre is payable for sales of petrol and diesel in remote areas. A further one cent per litre is available in remote areas where the price of petrol and diesel has exceeded $1.21 continuously for 4 weeks or more.
The purpose of the amending Regulations was to address the exclusion of fuel sales made at sea by motherships to fishing vessels from the Fuel Sales Grants Scheme because they did not occur at a location specified in the Regulations.
To address this anomaly the Regulations have introduced a new Regulation 5A that provides that fuel sales that take place in the coastal sea are taken to have occurred in the same type of area as the closest point of land to the location of the receiving vessel. For example, if the closest land to the receiving vessel is part of a remote area then the receiving vessel is taken to be in a remote area.
The Regulations commenced on gazettal.
Overview
The Fuel Sales Grants Amendment Regulations 2001 (No. 1) were enacted to address an omission in the original Fuel Sales Grants Act 2000 concerning fuel sales made at sea by motherships to fishing vessels. This Act was introduced to ensure fuel price relativities between metropolitan and non-metropolitan areas were maintained post the implementation of the goods and services tax and the reduction in fuel excise. The primary objective of the Act was to provide grants for fuel sales in non-metropolitan and remote areas, aiming to mitigate the impact of fuel price disparities. The Regulations, made under the authority of the Assistant Treasurer, introduced a new provision to ensure that fuel sales occurring in coastal waters are classified according to the nearest land area, thereby including previously excluded transactions in the scheme. These Regulations commenced on the date of their gazettal, ensuring that the legislative intent to cover all fuel sales fairly was realised.
Scope and Application
The Fuel Sales Grants Amendment Regulations 2001 (No. 1) apply to fuel sales transactions occurring in Australia, specifically targeting sales of petrol and diesel to consumers in non-metropolitan and remote areas. This includes fuel sales made at sea by motherships to fishing vessels, which were previously excluded from the scheme. The amendments ensure these transactions are treated as if they occurred in the same type of area as the closest point of land to the receiving vessel, thereby making them eligible for the relevant grant rates. This regulation extends the geographic reach of the original Fuel Sales Grants Act 2000, which was enacted to maintain fuel price relativities between metropolitan and non-metropolitan areas following the introduction of the goods and services tax and the reduction in the excise rate on fuel. The amendment regulations commenced upon gazettal, thereby extending the application of the Act without the need for further subordinate instruments.
Key Provisions
The Fuel Sales Grants Amendment Regulations 2001 (No. 1) primarily introduce changes to the Fuel Sales Grants Regulations under the Fuel Sales Grants Act 2000. The key operative sections of these regulations (section 3) clarify that a grant rate of one cent per litre is applicable for petrol and diesel sales in non-metropolitan areas, while a rate of two cents per litre applies in remote areas. Additionally, an extra cent per litre is available in remote areas if the price of petrol and diesel has exceeded $1.21 continuously for four weeks or more. The new Regulation 5A (section 4) specifically addresses fuel sales at sea by motherships to fishing vessels, classifying these sales based on the closest point of land to the receiving vessel.
These regulations impose obligations on fuel suppliers and recipients to correctly identify the type of area where the fuel sale occurs. Suppliers must determine whether the sale is in a metropolitan, non-metropolitan, or remote area to apply the appropriate grant rate. For sales at sea, suppliers must ascertain the closest point of land to the receiving vessel to correctly categorise the sale location. This requirement ensures compliance with the Act’s intent to maintain fuel price relativities and appropriately distribute grants.
Failure to comply with these regulations can lead to civil and administrative penalties. Although the specific penalties are not detailed within the text, breaches of the Fuel Sales Grants Act 2000 and its regulations could potentially incur fines or other corrective actions as stipulated by the relevant authorities. The precise consequences for non-compliance would be determined based on the specific nature and severity of the breach, as well as any additional legislative provisions that may apply.