Petroleum Excise (Prices) Amendment Act 1988

Overview

The Petroleum Excise (Prices) Amendment Act 1988 was enacted to address gaps in the Petroleum Excise (Prices) Act 1987, particularly concerning the fixing of transaction prices for excisable crude petroleum oil. The Act was passed by the Queen, with the assent of the Senate and the House of Representatives of the Commonwealth of Australia, on 12 December 1988. Its primary objective was to provide clarity and authority to the Minister, or an authorised officer, in determining fair and reasonable transaction prices when oil producers do not sell their oil directly but transfer possession to another party under a transaction. This amendment aimed to ensure that appropriate prices are fixed, thereby maintaining the integrity of the excise regime and supporting the fiscal policy objectives related to petroleum excise.

Scope and Application

The Petroleum Excise (Prices) Amendment Act 1988 applies to oil producers of excisable crude petroleum oil within the Commonwealth of Australia. The Act amends the Petroleum Excise (Prices) Act 1987 to refine the process by which transaction prices are determined. Specifically, it provides the Minister or an authorised officer with the power to fix a transaction price when an oil producer does not sell the oil but enters into a transaction where another person takes possession of the oil. This amendment seeks to ensure that a fair and reasonable price is set in such transactions. The Act mandates that the Minister or authorised officer notify the oil producer in writing of the fixed price, providing reasons for it. The amendment also modifies the definition of "reviewable decision" to include decisions fixing transaction prices and adjusts the definition of "transaction price" accordingly. This Act extends its application nationally across Australia and operates within the federal legislative framework, impacting entities involved in the production and transaction of excisable crude petroleum oil.

Key Provisions

The Petroleum Excise (Prices) Amendment Act 1988 introduces changes to the Petroleum Excise (Prices) Act 1987, primarily concerning the determination of transaction prices for excisable crude petroleum oil. Under section 3, the Act modifies the definition of "transaction price" to encompass both the sale price of oil and the price fixed by the Minister or an authorised officer if the oil is not sold by the producer but transferred to another party. This amendment requires the Minister or authorised officer to consider the terms of the transaction to determine a fair and reasonable price (subsection 3(2)). Additionally, the Act mandates that the Minister or authorised officer must notify the oil producer in writing of the fixed price, providing reasons for the decision (subsection 3(3)). The Petroleum Excise (Prices) Amendment Act 1988 imposes several obligations on the parties involved. The Minister or an authorised officer must fix a transaction price for excisable crude petroleum oil when the oil is transferred to another party without being sold by the producer (section 3(2)). This process requires careful consideration of the transaction's terms to ensure the price is fair and reasonable. Moreover, the Act requires that any fixed price be communicated to the oil producer in writing, including the rationale behind the decision (section 3(3)). Oil producers, on the other hand, are obligated to comply with the determined transaction price for excise purposes. Breach of the provisions set out in the Petroleum Excise (Prices) Amendment Act 1988 may result in legal consequences. However, the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. The primary focus of the Act appears to be on ensuring that transaction prices for excisable crude petroleum oil are determined fairly and communicated appropriately. Therefore, while non-compliance with the Act's requirements could potentially lead to legal actions, the specific penalties or consequences are not detailed within the text of the Act.