Bills Digest 83 1995-96
Customs and Excise Legislation Amendment Bill (No. 1) 1996
WARNING:
This Digest is prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments.
This Digest was available from 21 May 1996
CONTENTS
Date introduced: 6 May 1996
House: Senate
Portfolio: Small Business and Consumer Affairs
Commencement: This Act will be deemed to commence on
1 July 1995.
The Bill will correct a number of anomalies in the Customs and Excise
Legislation Amendment Act 1995 (CELA Act) and continue the diesel
fuel rebate for the mining of limestone used to combat soil acidity.
CELA contained a number of amendments to restrict the availability of
the diesel fuel rebate. The diesel fuel rebate was introduced in 1982
to replace a scheme that was in place since 1959. The 1959 scheme exempted
off road users from paying duty on diesel fuel and was replaced by the
current scheme due to abuse of the exemption scheme. The current scheme
originally aimed to repay diesel fuel duty in respect of all off-road
usage of diesel fuel, although eligibility criteria has been tightened
to prevent abuse of the scheme.
In 1994-95, 213 000 claims were paid on behalf of approximately 110
000 claimants at a cost of $1.25 billion.(1)
It was announced in the 1995-96 Budget that the eligibility criterion
for the rebate would be further tightened, with both the agricultural
and mining industries being affected. The measures were implemented by
CELA. While there were concerns about the reduction of the eligibility
for the rebate proposed in that Bill, most concern related to various
measures that would have retrospective activity. Many of the retrospective
measures were removed prior to the Bill passing Parliament and receiving
the Royal Assent.
Other concerns related to the removal of limestone mining from the categories
of activity eligible for the rebate, additional costs for the off-shore
oil exploration and the effect on mainstream mining operations. Together
with the changes to the retrospective action of various parts of the CELA
Bill, further amendments were made to redress some of these concerns.
As a result, the CELA Bill was substantially amended in the Senate (the
Explanatory Memorandum to the Bill states that there were 80 amendments
successfully moved in the Senate). Due to the number of amendments and
the short time in which they were made, a number of errors were contained
in the CELA Act, particularly in regard to the operation of the proposed
retrospective action of the Bill and the definitions of the industries
to be effected. The problems were addressed in the Customs and Excise
Legislation Amendment Bill (No. 2) 1995 (CELA2), which lapsed on the dissolution
of Parliament for the 1996 General Election.
The provisions of this Bill are substantially the same as in CELA2.
CELA2 was referred to the Senate Economic Legislation Committee, which
delivered its report in October 1995. The Report states:
During the course of the debate concerning [CELA] a number of successful
amendment were moved. However, in the process of translating the will
of Parliament into a final Royal Assent Bill, a number of transcription
errors occurred. In addition, several substantive problems with the commencement
and savings provisions of the CELA Act have been identified which are
contrary to the expressed intention of the Senate.(2)
The Minority Report by members of the then Opposition expressed concern
and proposed amendments regarding the withdrawal of the diesel fuel rebate
relating to:
- limestone mining as it would increase the cost of lime used to combat
soil acidity; and
- increased costs to the off-shore oil exploration industry.
The Minority Report also expressed concern about potential inflexibility
of the new rules, particularly in relation to mining industries.(3)
The Bill restores the rebate for the mining of limestone to combat soil
acidity.
The diesel fuel rebate scheme was examined by the Australian National
Audit Office in it's Report No. 20 of 1995-96. Amongst its Key Findings
the Report states:
- The objectives of the scheme remain unclear. This impedes any assessment
of how effective the annual expenditure of $1.25 billion is in achieving
the Government's policy aims;
For some years after the last audit [1991], the criteria for eligibility
under the scheme remained complex and ill defined. This had the effect
of broadening the scheme (particularly through high numbers of Administrative
Appeals Tribunal and Court decisions), increasing the likelihood of incorrect
payments being made under the scheme. However, legislative amendments
aimed at addressing major concerns took effect on 1 July 1995 [ie. CELA].(4)
The main provisions of the Bill, which are contained in Schedule 1,
address the law to be applied to appeals against decisions refusing the
diesel fuel rebate. As CELA currently stands, applications before courts
and tribunals are to be determined according to the legislation as amended
by CELA.
Item 5 of the Schedule 1 provides that, where an application
for the rebate has been made before CELA took effect (1 July 1995), or
an appeal has been made regarding the payment of the rebate before that
date, the law to be used in relation to such matters is that which applied
before CELA was enacted.
The other major amendment contained in the Bill will continue the diesel
fuel rebate for mining operations for 'agricultural use limestone' The
Schedule to the Bill amends a number of provisions of the CELA Act to
continue eligibility for the rebate to mining operations for limestone
used in deacidification of soil used for agricultural activities .
(1) Australian National Audit Office, Report No. 20 1995-96, p. 3.
(2) Senate Economic and Legislation Committee, Report on CELA2, October
1995, p. 1.
(3) Ibid., pp. 24, 25.
(4) Australian National Audit Office, Report No. 20 1995-96, p. xiv.
Chris Field Ph. 06 277 2439
20 May 1996
Bills Digest Service
Parliamentary Research Service
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.
PRS staff are available to discuss the paper's contents with
Senators and Members and their staff but not with members of the public.
ISSN 1323-9032
Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library, 1996.
This page was prepared by the Parliamentary Library, Commonwealth of
Australia
Last updated: 21 May 1996
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