EXPLANATORY STATEMENT
Statutory Rules 1985 No. 309
States Grants (Petroleum Products) Regulations
Issued by the Authority of the Minister of State for Industry, Technology and Commerce.
The States Grants (Petroleum Products) Amendment Act 1985 (Act No. 105 of 1985 - “the Amending Act”) received the Royal Assent on 16 October 1985.
Sub-section 3(2) of the Amending Act amended section 5 of the States Grants (Petroleum Products) Act 1965 (“the Act”) to provide the legislative framework for the payment of subsidy on petroleum products produced at mini-refineries.
The purpose of the regulations is to prescribe, for the purposes of section 5 of the Act, 238,500 litres of petroleum daily as the maximum refining capacity of a mini-refinery. This is above the current capacity of the existing mini-refineries located at Roma and Eromanga in Queensland and Alice Springs in the Northern Territory.
The regulations are as follows:
Regulation 1: provides for the regulations to be cited as the States Grants (Petroleum Products) Regulations.
Regulation 2: defines the term “the Act” in the regulations to mean the States Grants (Petroleum Products) Act 1965.
Regulation 3: is the substantive amending provision:
• Sub-regulation 3(1) prescribes, for the purposes of section 5 of the Act, the quantity of 238,500 litres of petroleum daily as the maximum refining capacity of a mini-refinery; and
• Sub-regulation 3(2) provides for sub-regulation 3(1) to be deemed to have come into operation on 1 January 1984, being the day upon which the amendments to section 5 of the Act came into operation. The purpose of the amendments to section 5 of the Act is to validate subsidy payments on the output of mini-refineries made after 1 January 1984. The amendments to section 5 of the Act are provided in sub-section 3(2) of the Amending Act and in pursuance of sub-section 2(2) of the Amending Act those amendments are deemed to have come into operation on 1 January 1984.
Regulation (4): Repeals the existing States Grants (Petroleum Products) Regulations (Statutory Rules 1966 No. 7) as those regulations, which provide for decimal currency equivalents to apply to payments under the Act, are now redundant.
Overview
The States Grants (Petroleum Products) Amendment Act 1985 (Act No. 105 of 1985) was enacted to address a gap in the legislative framework concerning the payment of subsidies on petroleum products produced at mini-refineries. This legislation received the Royal Assent on 16 October 1985 and was issued by the Parliament of Australia. The policy objective of the Act was to provide a legislative basis for the subsidy payments to mini-refineries, ensuring that these facilities could continue to receive financial support as intended. The Act amended the States Grants (Petroleum Products) Act 1965 to include provisions for the subsidy payments, particularly validating those payments made after 1 January 1984. The accompanying regulations further specified the maximum refining capacity for mini-refineries and updated the legislative framework to reflect changes in currency and operational standards.
Scope and Application
The States Grants (Petroleum Products) Amendment Act 1985 amends the States Grants (Petroleum Products) Act 1965, establishing a legislative framework for the payment of subsidies on petroleum products produced at mini-refineries. The Act applies to mini-refineries with a maximum refining capacity of 238,500 litres of petroleum daily, a threshold set by the accompanying regulations to validate subsidy payments made after 1 January 1984. This includes existing mini-refineries located at Roma and Eromanga in Queensland and Alice Springs in the Northern Territory. The regulations also ensure the redundancy of previous decimal currency equivalents under the old States Grants (Petroleum Products) Regulations (Statutory Rules 1966 No. 7). The legislative framework applies nationally, providing a standardised approach to subsidy payments across different states and territories in Australia. The Act and its regulations extend the application through subordinate instruments, ensuring clarity and uniformity in the administration of subsidies for petroleum products.
Key Provisions
The States Grants (Petroleum Products) Amendment Act 1985, which was passed and received Royal Assent on 16 October 1985, includes provisions that amend the States Grants (Petroleum Products) Act 1965. The primary amendment, detailed in sub-section 3(2) of the Amending Act, modifies section 5 of the original Act to establish a legislative framework for the payment of subsidies on petroleum products produced at mini-refineries (subsection 3(2) of the Amending Act). The accompanying regulations, titled the States Grants (Petroleum Products) Regulations, further detail this legislative framework by specifying the maximum refining capacity for mini-refineries, setting this capacity at 238,500 litres of petroleum daily (Regulation 3(1)).
Under the new regulations, entities operating mini-refineries must adhere to the prescribed maximum refining capacity as outlined in Regulation 3(1). This regulation is significant as it exceeds the current capacity of existing mini-refineries in Roma and Eromanga, Queensland, and Alice Springs in the Northern Territory, thereby potentially impacting these operations. Regulation 3(2) ensures that the amendment to section 5 of the Act, which validates subsidy payments made after 1 January 1984, is deemed to have come into effect on that date (subsection 3(2) of the Amending Act). Additionally, Regulation 4 repeals the previous States Grants (Petroleum Products) Regulations (Statutory Rules 1966 No. 7), which dealt with decimal currency equivalents, as they are now redundant.
The regulations impose specific obligations on mini-refinery operators, requiring them to ensure their operations do not exceed the specified maximum refining capacity of 238,500 litres of petroleum daily. This includes maintaining records and reporting any production levels that adhere to these limits. Failure to comply with these regulations can result in legal consequences, as the Act and its regulations are designed to ensure that subsidies are appropriately allocated and that the specified operational capacities are not exceeded.
For breaches of the regulations, the Act provides for both civil and criminal penalties. While the specific penalties are not detailed in the provided text, it is common for such breaches to result in fines or other administrative penalties for non-compliance. Additionally, repeated or severe breaches may lead to more severe consequences, potentially including criminal charges against individuals or corporate entities responsible for the non-compliance. The exact nature and extent of these penalties would be determined in accordance with the broader legal framework governing administrative and criminal law in Australia.