Petroleum Excise (Prices) Amendment Act 1997

Administered by Department of the Treasury

Legislation au C2004A05176 Not in force Act

Legislation content

 

 

 

 

Petroleum Excise (Prices) Amendment Act 1997

 

No. 79, 1997

 

 

 

 

An Act to amend the Petroleum Excise (Prices) Act 1987, and for related purposes

 

Contents

1 Short title..................................1

2 Commencement..............................1

3 Schedule(s).................................2

Schedule 1—Amendment of the Petroleum Excise (Prices) Act 1987 3

 

Petroleum Excise (Prices) Amendment Act 1997

No. 79, 1997

 

 

 

An Act to amend the Petroleum Excise (Prices) Act 1987, and for related purposes

[Assented to 18 June 1997]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Petroleum Excise (Prices) Amendment Act 1997.

2  Commencement

  This Act commences on 1 July 1997.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendment of the Petroleum Excise (Prices) Act 1987

1  Subsection 4(1)

Insert:

limited production area means a production area that is declared to be a limited production area under subsection 6(1B).

2  Subsection 4(1)

Insert:

production area means a production area within the meaning of section 5B of the Excise Tariff Act 1921:

 (a) from which stabilised crude petroleum oil is obtained; and

 (b) which is prescribed to be the whole or part of an oil producing region.

3  Subsection 4(1) (definition of reference price)

Repeal the definition.

4  Subsection 4(1) (at the end of paragraphs (aa) and (a) of the definition of reviewable decision)

Add “or”.

5  Subsection 4(1) (after paragraph (aa) of the definition of reviewable decision)

Insert:

 (ab) a decision under subsection 6(1B) refusing to declare a production area to be a limited production area; or

 (ac) a decision under subsection 6(1E) to revoke a declaration that a production area is a limited production area; or

6  Section 5

Repeal the section.

7  After subsection 6(1)

Insert:

 (1A) The information prescribed for the purposes of subsection (1) may differ according to whether or not the transaction entered into by the oil producer relates to excisable crude petroleum oil produced from a production area while that area is declared to be a limited production area.

 (1B) If, in respect of excisable crude petroleum oil produced by an oil producer from a particular production area:

 (a) the volume of that oil entered for home consumption before the end of each of 3 consecutive months (whether in the same financial year or not) is less than 80% of the free volume of excisable crude petroleum oil in respect of that month, worked out in accordance with subsection (1G); and

 (b) the Minister is satisfied that the volume of that oil likely to be entered for home consumption before the end of any future month is unlikely, having regard to production statistics and any other relevant factor known to the Minister, to exceed 80% of the free volume of that oil in respect of that future month, worked out in accordance with subsection (1G);

the Minister may declare in writing that production area to be a limited production area and, if the Minister does so, he or she must notify the oil producer concerned of that declaration.

 (1C) If, in respect of excisable crude petroleum oil produced by an oil producer from a particular production area:

 (a) paragraph (1B)(a) applies in respect of any period of 3 consecutive months; but

 (b) the Minister does not declare that production area to be a limited production area within 15 days after the end of that period;

the Minister is taken to have refused, under subsection (1B), to make that declaration.

 (1D) If, because the Minister does not declare a production area to be a limited production area within 15 days after the end of a period of 3 consecutive months, the Minister is taken, under subsection (1C), to have refused to make that declaration:

 (a) that subsection does not prevent the Minister making such a declaration, in accordance with subsection (1B), at the end of any period of 3 consecutive months to which paragraph (1B)(a) applies (a subsequent period) that ends after that first‑mentioned period; but

 (b) if the Minister does not, within 15 days after the end of a subsequent period, make such a declaration, the Minister is again taken to have refused, under subsection (1B), to make such a declaration.

 (1E) If:

 (a) a particular production area has been declared to be a limited production area; and

 (b) at any time after the declaration, the volume of excisable crude petroleum oil produced in that area and entered for home consumption exceeds the free volume of that oil in respect of that month, worked out in accordance with subsection (1G);

then:

 (c) the Minister must, by written notice given to the oil producer concerned, revoke the declaration; and

 (d) the producer must give to the Minister, in respect of all excisable crude petroleum oil produced in that area and entered for home consumption after the making of the declaration, the information that, but for the making of the declaration, would have been required in respect of each transaction concerning that oil.

 (1F) The information required to be given to the Minister under subsection (1E), or particular parts of that information, must be given to the Minister:

 (a) unless the Minister otherwise indicates in the notice revoking the declaration—in the form specified for the purpose of subsection (2); and

 (b) within a time or times specified by the Minister in that notice.

 (1G) For the purposes of this section, the free volume of excisable crude petroleum oil that is entered for home consumption before the end of a month is the maximum volume of such oil that, if entered for home consumption before the end of that month would, under section 6B, 6C or 6D of the Excise Tariff Act 1921, be a volume of oil to which no notional duty was applicable.

Note: Subsection (4) of section 6B, 6C or 6D of the Excise Tariff Act 1921 specifies, among other things, the minimum volume of oil to which notional duty becomes applicable. The effect of that subsection is modified by subsection (9) of each of those sections.

8  After subsection 7(2)

Insert:

 (2A) Nothing in this section implies that the Minister, or a person authorised by the Minister to exercise the Minister’s powers under this section, cannot determine an interim VOLWARE price for a month and an oil producing region at any time during the month concerned, whether or not there is available at that time any information concerning the prices for which excisable crude petroleum oil obtained from that region and entered for home consumption during that month has been sold, or is likely to be sold.

9  After subsection 7(3)

Insert:

 (3A) In spite of subsections (2) and (3), neither the Minister nor a person authorised by the Minister to exercise the Minister’s powers under this section is required to determine an interim VOLWARE price, or a final VOLWARE price, in respect of an oil producing region and a month if, at all times during that month:

 (a) if the region consists of a single production area—there is in force a declaration under subsection 6(1B) that that area is a limited production area; or

 (b) if the region consists of 2 or more production areas—there are in force declarations under subsection 6(1B) that each of those areas is a limited production area.

 (3B) Nothing in subsection (3A) affects the obligation of the Minister or of a person authorised by the Minister to exercise the Minister’s powers under this section to determine an interim VOLWARE price, or a final VOLWARE price, in respect of an oil producing region and a month if a declaration under subsection 6(1B) relating to a production area in that region that was in force during that month is subsequently revoked.

10  Paragraph 8(a)

Omit “Comptroller”, substitute “CEO”.

11  Saving

(1) The Petroleum Excise (Prices) Act 1987 as in force immediately before the commencement day continues to apply in relation to excisable crude petroleum oil obtained from an oil producing region and entered for home consumption during a month occurring before that day.

(2) In this item:

commencement day means the day on which this Act commences.

excisable crude petroleum oil, oil producing region and month have the same meanings as in subsection 4(1) of the Petroleum Excise (Prices) Act 1987 as in force immediately before the commencement day.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 26 March 1997

Senate on 15 May 1997]

 

(33/97)


 


 

 

I HEREBY CERTIFY that the above is a fair print of the Petroleum Excise (Prices) Amendment Bill 1997 which originated in the House of Representatives and has been finally passed by the Senate and the House of Representatives.

 

 

 

Clerk of the House of Representatives

 

IN THE NAME OF HER MAJESTY, I assent to this Act.

 

 

 

Governor-General

1997

 

 

 

Overview

The Petroleum Excise (Prices) Amendment Act 1997 was enacted by the Parliament of Australia to amend the Petroleum Excise (Prices) Act 1987, addressing specific issues related to the pricing of excisable crude petroleum oil. The primary objective of this Act is to refine the criteria and processes for determining certain prices related to petroleum excise, particularly focusing on oil produced in areas where production volumes are low, which may require special consideration under excise regulations. The Act provides detailed amendments to definitions, introduces new provisions for declaring production areas as "limited production areas," and modifies the mechanisms for determining interim and final prices for oil within these areas. It also includes transitional provisions to ensure a smooth application of the new rules to existing situations. The Act was assented to on 18 June 1997, with the intention of providing more flexibility and precision in managing the excise obligations for oil producers, particularly in regions where production does not meet certain volume thresholds. This amendment was designed to better align the excise regime with the operational realities of the oil industry, ensuring that the excise obligations do not unduly burden producers in areas where production is inherently constrained.

Scope and Application

The Petroleum Excise (Prices) Amendment Act 1997 amends the Petroleum Excise (Prices) Act 1987, which pertains to the imposition of excise on petroleum products in Australia. The Act applies to oil producers and the Minister responsible for excise in relation to petroleum products. It governs the pricing and declaration mechanisms for limited production areas, which are areas where the volume of excisable crude petroleum oil produced and entered for home consumption is less than 80% of the free volume for three consecutive months. The Act also modifies the definition of certain terms and updates the information requirements for oil producers under the Petroleum Excise (Prices) Act 1987. The amendments are intended to refine the administrative process for determining the excise on petroleum products, particularly concerning the declaration and revocation of limited production areas. The Act applies nationally across Australia and came into effect on 1 July 1997. The Act allows for further specification and regulation through subordinate instruments, which may include regulations detailing the procedures and forms for the information to be provided to the Minister.

Key Provisions

The Petroleum Excise (Prices) Amendment Act 1997 (C2004A05176) makes several significant changes to the Petroleum Excise (Prices) Act 1987, primarily concerning the definition and regulation of production areas and the excise on crude petroleum oil. The main operative sections of the Amendment Act introduce the concept of a "limited production area" (subsection 4(1)) and redefine "production area" (subsection 4(1)), replacing the previous definition of "reference price" (subsection 4(1)). Furthermore, it modifies the definition of "reviewable decision" (subsection 4(1)) by adding new subparagraphs (ab) and (ac). Section 5 is repealed, and new subsections (1A) to (1F) are inserted in subsection 6(1) to govern the declaration and revocation of limited production areas by the Minister. The Amendment Act imposes several obligations on the Minister and oil producers. The Minister has the authority to declare a production area as a "limited production area" if the volume of oil produced and entered for home consumption falls below 80% of the free volume for three consecutive months (subsection 6(1B)). The Minister must notify the relevant oil producer of such a declaration. Oil producers must comply with the Minister's requirements, including providing specified information if a production area is declared a limited production area (subsection 6(1E)). The Minister may also determine interim and final VOLWARE prices for oil producing regions (subsections 7(2A) and (3A)), although these determinations are not mandatory if a production area within the region is a limited production area (subsection 7(3A)). The Amendment Act also includes provisions for potential breaches and penalties, although specific civil or criminal penalties are not detailed within the text of the Act itself. For example, failure to comply with the Minister's requirements regarding information submission when a production area is declared a limited production area could lead to enforcement actions by the Minister. However, the exact nature of these consequences is not explicitly stated in the provided text. Additionally, the Act includes a saving provision (paragraph 11) to ensure that the original Petroleum Excise (Prices) Act 1987 continues to apply to certain situations occurring before the Amendment Act's commencement date.

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