Bills Digest no. 27 2008–09
Offshore Petroleum (Registration Fees) Amendment (Greenhouse Gas Storage)
Bill 2008
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
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CONTENTS
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Date introduced:
18 June 2008
House:
Representatives
Portfolio:
Resources, Energy and Tourism
Commencement:
Sections 1 to 3, on the day of the Royal Assent;
Schedules 1-3, in accordance with the commencement of various schedules
of the Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008.
Links: The relevant
links to the Bill, Explanatory Memorandum and second reading speech
can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/. When Bills
have been passed they can be found at ComLaw, which is at http://www.comlaw.gov.au/.
To amend the Offshore Petroleum
(Registration Fees) Act 2006 (OP (Registration Fees) Act to include
references to greenhouse gas titles; and to impose fees for:
- registration of the transfer of a greenhouse gas title, and
- registration of an approval of a dealing in relation to a greenhouse
gas title.
The register for the transfers of and dealings in greenhouse
gas titles is created by provisions contained in Chapter 3A of the Offshore
Petroleum Amendment (Greenhouse Gas Storage) Bill 2008.
This bill imposes a fee in the following circumstances:
- when the transfer of a greenhouse gas title is registered, and
- when an approval by the responsible Commonwealth Minister of a dealing
in relation to a greenhouse gas title is registered.
The provisions about registration of greenhouse gas titles
mirror provisions in the Offshore Petroleum Act 2006 (OPA) dealing
with petroleum titles which are contained in Chapter 3 of the OPA. In
the case of petroleum titles, the transfer of and dealings in petroleum
titles, are entered on the register of titles which is kept by the Designated
Authority.[1] A transfer of a petroleum title
must be approved by the Designated Authority and the instrument of transfer
registered. Similarly, a dealing relating to a petroleum title must be
approved by the Designated Authority and that approval entered in the
Register. A fee is imposed for the registration of the transfer of a petroleum
title and the approval of a dealing in relation to a petroleum title.
Both of these fees are imposed as a tax.
By contrast, the responsible Commonwealth Minister keeps
the Register for greenhouse gas titles. The transfer of a greenhouse
gas title must be approved by the responsible Commonwealth Minister and
an instrument of transfer registered under Part 3A.1 of the Offshore Petroleum
Amendment (Greenhouse Gas Storage) Bill 2008. A dealing in a greenhouse
gas title must also be approved by the responsible Commonwealth Minister
and the approval must be entered in the register.
An example of ‘a dealing’ is to be found in proposed
section 298-252 Dealing-series of debentures. For example ‘for the
purposes of Chapter 3A, if a dealing forms a part of the issue of a series
of debentures, all of the dealings constituting the issue of that series
of debentures are taken to be one dealing.’[2] Proposed section 298-269[3]
lists the effects of dealings.
The imposition of a fee for the transfer of a greenhouse
gas title and the imposition of a fee for the approval of a dealing relating
to a greenhouse gas title are both imposed as a tax.
Section 51(ii) of the Constitution gives the Commonwealth
the power to legislate with respect to taxation. Section 55 of the Constitution
requires that laws imposing a tax deal with only one subject of taxation.
For this reason, the matters relating to the imposition of the taxes are
contained in this Bill and not the Offshore Petroleum Amendment (Greenhouse
Gas Storage) Bill 2008.
No mention is made about any financial implications for
this Bill in the Explanatory Memorandum or the Second reading speech of
the Minister. There may be some possible increase in costs relating to
the maintenance of the Register depending on numbers of transactions to
be recorded.
The Bill contains three schedules.
Items 1-16 of Schedule 1 contain general amendments
so that the words ‘and Greenhouse Gas Storage’ are added to existing references
to ‘Offshore Petroleum’ in the Offshore Petroleum (Registration Fees)
Act 2006.
Item 17 of Schedule 1 inserts proposed
sections 6A and 6B into the OP (Registration of Fees) Act. Proposed
section 6A imposes a fee to make an entry in the Register for a transfer
of a greenhouse gas title. The amount of the fee is worked out using the
table in proposed subsection 6A(2). The fee in respect of item
1 in the table is calculated as a percentage of the value of the consideration
for the transfer or the value of the title transferred. The fees in respect
of items 2-4 of the table are amounts prescribed by regulations.
The fee is imposed as a tax (proposed subsection 6A(4)).
Proposed section 6B imposes a fee to register
the approval of a dealing where the entry is made under section 298-276
of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.[4] The amount of the fee is worked out using the
table in proposed subsection 6B(2). For items 1-4 of the
table provide for fees which are calculated as a percentage of the value
of the consideration for the dealing or the value of the interest. The
fees in respect of items 5 and 6 of the table are amounts prescribed
by regulations.
Items 1-3 of Schedule 2 of the Bill contain amendments
which omit references to the term ‘production licence’ and insert the
term ‘petroleum production licence’ in the OP (Registration of Fees) Act.
Items 1-12 of Schedule 3 of the Bill contain amendments
to the OP (Registration of Fees) Act which change references to renumbered
provisions.
Moria Coombs
17 September 2008
Bills Digest Service
Parliamentary Library
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