WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
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CONTENTS
Customs Tariff Amendment Bill (No.4) 1997
Date Introduced: 3 September 1997
House: House of Representatives
Portfolio: Industry, Science and Tourism
Commencement: Immediately following the
commencement of the Customs Tariff (Fuel Rates Amendments) Bill
1997 which was introduced on 25 June 1997 and is yet to pass
either the House or the Senate.
The Bill ensures that the safety net measures enacted in
response to the High Court's recent decision invalidating certain
State franchise laws and casting doubt on the constitutional
validity of others, are not displaced by the enactment of a series
of bills dealing with fuel substitution.
In short, this Bill, and a complementary initiative dealing with
excise, are consequential measures.
The three operational provisions of the present Bill are
contained the Schedule to the Bill and involve amendments to the
Customs Tariff Act.
Item 1 insulates the rates of duty imposed by
the Customs Tariff Amendment Bill (No.3) 1997 (the safety net Bill)
in regard to, amongst other things, Benzole, Toluole, Xylole and
various petroleum oils and oils obtained from bituminous minerals
and crude from the unintended reduction in duty by the passage of
the Customs Tariff (Fuel Rates Amendments) Bill 1997.
Item 2 has the same effect as Item 1 but
applies to petroleum products with a higher lead content, ie a lead
content exceeding 13 milligrams per litre.
Item 3 amends the Customs Tariff Act to provide
that the changes effected by this Bill apply from the date that the
Bill commences to goods which have cleared a customs point and
entered home consumption.
Safety Net Bills
On 28 August 1997, the Government brought forward a package of
nine Bills intended to deal with the consequences of the High
Court's decision in Ha & Another v State of New South Wales
& Others and Walter Hammond & Associates Pty
Limited v State of New South Wales and Others (Ha and
Hammond) (both unreported).(1)
The package honoured the Treasurer's undertakings of 6 August
1997 that:
- the Commonwealth would use its taxing powers to collect
revenues formerly levied under State franchise laws which the High
Court had held either to be invalid or constitutionally
doubtful;
- the Commonwealth would protect the States and Territories
against any actions brought by persons seeking a refund for
payments made prior to 5 August 1997 under (invalid) State
franchise laws; and
- legislation would be enacted to give effect to the above
'safety net' measures as a matter of urgency.(2)
The safety net legislation, which included the Customs
Tariff Amendment Act (No.3) 1997 (CTA No.3) and the Excise
Tariff Amendment Act (No.3) 1997 (ETA No.3), was
passed by the House of Representatives on 2 September 1997 and by
the Senate two days later. It will probably receive the Royal
Assent before the present Sitting resumes on 22 September
1997.(3)
The principal effect of CTA No.3 and ETA No.3 was to raise rates
of duty and excise on tobacco, tobacco products and petroleum
products, thereby incorporating State franchise fees invalidated or
called into question by Ha and Hammond.
[Note: All nine Bills are analysed and discussed in
Bills Digests Nos. 23 31 of 1997 98.]
Fuel Substitution Bills
A package of seven Bills had been introduced on 25 June 1997
dealing with fuel substitution and rates of duty.(4) This
legislation is intended to extend and strengthen the present law by
making it easier for authorities to determine when people are
avoiding tax.
For example, the Customs Tariff (Fuel Rates Amendments) Bill
1997, which is still before the Parliament, provides for amendments
to the Customs Tariff Act 1995 (the Customs Tariff Act) to
create a new regime for classifying petroleum products and has the
effect of adjusting the rates of duty on those products. (The new
regime creates a three-tiered customs tariff rate system within
six/seven digit classifications derived from the intended use of
the products.)
The eventual passage of the seven fuel substitution Bills
[including the Customs Tariff (Fuel Rates Amendments) Bill 1997]
would, if nothing else were done, have the unintended effect of
repealing and replacing the higher rates of customs and excise duty
imposed by the safety net measures(5) given expedited passage in
the wake of Ha and Hammond.
[Note: All seven fuel substitution Bills are analysed
and discussed in Bills Digests Nos. 34 40 of 1997 98.]
- 'What is an excise duty? Ha and Hammond v NSW', Research
Note, Number 1, August 1997; and 'Federalism Up in Smoke? The
High Court Decision on State Tobacco Tax', Current Issues
Brief, No.1, 1997-98.
- Treasurer, Press Release, No.85, 6 August 1997.
- And are for the sake of convenience referred to as Acts in this
Digest.
- Excise Tariff (Fuel Rates Amendments) Bill 1997; Customs Tariff
(Fuel Rates Amendments) Bill 1997; Fuel Misuse (Penalty Surcharge)
Bill 1997; Fuel Sale (Penalty Surcharge) Bill 1997; Fuel Blending
(Penalty Surcharge) Bill 1997; Fuel (Penalty Surcharges)
Administration Bill 1997; and the Customs and Excise Legislation
Amendment Bill (No.2) 1997.
- That is, the nine franchise fee Bills.
Bob Bennett
15 September 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
IRS staff are available to discuss the paper's contents with
Senators and Members and their staff but not with members of the
public.
ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library,
1997.
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Last updated: 15 September 1997
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