States Grants (Petroleum Products) Amendment Act 1985

Administered by Department of Resources, Energy and Tourism

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No. 105 of 1985

An Act to amend the States Grants (Petroleum Products) Act 1965, and for related purposes

[Assented to 16 October 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the States Grants (Petroleum Products) Amendment Act 1985.

(2) The States Grants (Petroleum Products) Act 19651 is in this Act referred to as the Principal Act.

Commencement

2. (1) Sections 1 and 2 shall come into operation on the day on which this Act receives the Royal Assent.

(2) Sub-sections 3 (2) and (3) shall be deemed to have come into operation on 1 January 1984.

(3) The remaining provisions of this Act shall come into operation on a day to be fixed by Proclamation.

Provisions of scheme

3. (1) Section 5 of the Principal Act is amended by inserting after sub-section (4) the following sub-sections:

“(4a) The scheme may contain a provision requiring a registered distributor of eligible petroleum products included in a specified class of registered distributors of eligible petroleum products (including a distributor registered before the provision comes into effect) to comply with such conditions as are specified in the scheme in relation to that class.

“(4b) The scheme shall not permit the registration under the scheme of a distributor of eligible petroleum products included in a class of distributors of eligible petroleum products specified in a provision contained in the scheme in accordance with sub-section (4a) unless the person authorised to register distributors is satisfied that the distributor is capable of complying with the conditions (if any) that will be applicable to the distributor under such a provision on the registration of the distributor.

“(4c) The scheme may contain a provision requiring a claim for payment of an amount in accordance with the scheme made by a registered distributor of eligible petroleum products included in a specified class of registered distributors of eligible petroleum products to be accompanied by such declarations (including declarations made by a person other than the claimant) and other documents (if any) as are specified in the scheme in relation to that class.”.

(2) Section 5 of the Principal Act is amended—

(a) by inserting before sub-section (5) the following sub-sections:

“(4d) The scheme shall provide that a person shall be deemed not to be a registered distributor of eligible petroleum products at any time when—

(a) in a case where the person is an incorporated company— the person is, or is related to another company that is, the owner or operator of a mini-refinery; or

(b) in any other case—the person is the owner or operator of a mini-refinery.

“(4e) For the purposes of sub-section (4d), the question whether incorporated companies are related to each other shall be determined in the same manner as the question whether corporations within the meaning of the Companies Act 1981 are related to each other would be determined under that Act.”;

(b) by omitting from paragraph (5) (a) “and” (last occurring);

“(aa) shall provide for the payment by the State to registered distributors of eligible petroleum products, in respect of

the sale by them at a place to which the scheme applies of any eligible petroleum products that—

(i) are produced at a mini-refinery located at that place; and

(ii) are not for delivery to another place,

of amounts ascertained in accordance with the scheme; and”; and

(d) by adding at the end the following sub-section:

“(8) In this section—

‘mini-refinery’ means a refinery that is not able to carry out refining processes on more than a quantity of petroleum daily which is the prescribed quantity for the purposes of this section;

‘petroleum’ means petroleum oil or petroleum gas.”.

(3) A scheme formulated in relation to a State for the purposes of the States Grants (Petroleum Products) Act 1965 and in force at any time after 31 December 1983 and before the day fixed under sub-section 2 (3) of this Act shall be deemed to have included the provisions required by sub-section 5 (4d) and paragraph 5 (5) (aa) of that Act as amended by sub-section (2) of this section.

4. After section 8 of the Principal Act the following section is inserted:

False declarations accompanying claims for payment

“8a. (1) Where—

(a) pursuant to a provision included in a scheme in accordance with sub-section 5 (4c), a claim for payment of an amount in accordance with the scheme in respect of the sale and delivery of eligible petroleum products is accompanied by a declaration made by a person in charge of a ship;

(b) the declaration relates to the delivery of those eligible petroleum products by or to the ship; and

the person is guilty of an offence.

“(2) An offence against sub-section (1) is an indictable offence, and, subject to this section, is punishable on conviction by a fine not exceeding $5,000 or imprisonment for a period not exceeding 2 years, or both.

“(3) Notwithstanding that an offence referred to in sub-section (2) is an indictable offence, a court of summary jurisdiction may hear and determine proceedings in respect of such an offence if the court is satisfied that it is proper to do so and the defendant and the prosecutor consent.

“(4) Where, in accordance with sub-section (3), a court of summary jurisdiction convicts a person of an offence referred to in sub-section (2),

the penalty that the court may impose is a fine not exceeding $2,000 or imprisonment for a period not exceeding 1 year, or both.

“(5) This section is not intended to affect the operation of a law of a State to the extent that that law is capable of operating concurrently with this section.

“(6) In this section, ‘ship’ means a vessel or boat of any description.”.

NOTE

1. No. 27, 1965, as amended. For previous amendments, see No. 153, 1965; No. 90, 1969; No. 112. 1973; No. 12, 1978; No. 80, 1982: No. 102, 1983; and No. 39. 1985.

[Minister’s second reading speech made in—

House of Representatives on 11 September 1985

Senate on 8 October 1985]

Overview

The States Grants (Petroleum Products) Amendment Act 1985, enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, aims to amend the States Grants (Petroleum Products) Act 1965. The original Act established a scheme to provide grants to states for the sale of eligible petroleum products. The 1985 Amendment Act addresses gaps and issues in the administration and regulation of petroleum product sales, particularly regarding mini-refineries and the integrity of claims for payment. It introduces stricter conditions for distributor registration, including prohibiting certain mini-refinery owners from registering as distributors and requiring compliance with specific conditions for other distributors. It also mandates payments for sales of petroleum products from mini-refineries and introduces penalties for making false or misleading declarations in claims for payment. The policy objective is to ensure fair and regulated distribution and sale of petroleum products while maintaining the integrity of financial claims related to these activities.

Scope and Application

The States Grants (Petroleum Products) Amendment Act 1985 amends the States Grants (Petroleum Products) Act 1965, primarily focusing on the administration and regulation of eligible petroleum products through a scheme. This Act applies to registered distributors of eligible petroleum products, which include individuals and companies involved in the distribution of petroleum products in Australia, as well as to the mini-refinery operations within the states. The geographic reach of the Act is national, applying across all states and territories of Australia, as it involves grants and regulations distributed by the Commonwealth. Certain exclusions and restrictions are placed on the registration and operations of distributors, particularly those involved in mini-refinery operations, which are defined as refineries not capable of processing a prescribed quantity of petroleum daily. The Act also introduces penalties for false declarations made in relation to claims for payments under the scheme, with provisions that allow courts of summary jurisdiction to handle such offences under specific conditions. The Act’s application can be further detailed or modified through subordinate instruments, ensuring its adaptability to changing circumstances or needs in the petroleum products sector.

Key Provisions

The States Grants (Petroleum Products) Amendment Act 1985 amends the States Grants (Petroleum Products) Act 1965. It introduces several new provisions that govern the distribution and sale of eligible petroleum products, including mini-refinery operations. Section 5 of the Principal Act is significantly amended to allow the scheme to include specific conditions for registered distributors in certain classes (subsection 5(4a)). It also mandates that only those distributors capable of complying with these conditions can be registered (subsection 5(4b)). Furthermore, it requires that claims for payments be accompanied by specified declarations and documents (subsection 5(4c)). The scheme can now also prohibit the registration of distributors who own or operate mini-refineries (subsection 5(4d)), and it can mandate payments to distributors for the sale of mini-refinery produced products that are not for delivery elsewhere (subsection 5(5)(aa)). Under this Act, the obligations on registered distributors include complying with the conditions set forth in the scheme, ensuring that they do not own or operate mini-refineries if they wish to remain registered, and providing accurate declarations and documents when making claims for payments. The Act also imposes duties on the authorised bodies to ensure that only eligible distributors are registered and that payments are made in accordance with the scheme’s provisions. The Act creates specific offences related to false declarations accompanying claims for payment. According to section 8a, any person in charge of a ship who knowingly makes a false or misleading declaration in relation to the delivery of eligible petroleum products commits an offence. This is an indictable offence, punishable by a fine of up to $5,000, imprisonment for up to 2 years, or both, on conviction. In certain circumstances, a court of summary jurisdiction can hear and determine the offence if both the defendant and the prosecutor consent, with the penalty being a fine of up to $2,000 or imprisonment for up to 1 year, or both. This provision ensures that there are strict consequences for providing inaccurate information in the context of petroleum product sales and distribution.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations; Regulatory Standards

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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