Bills Digest 84 1995-96
Excise Tariff Amendment Bill 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 22 May 1996
CONTENTS
Date introduced: 1 May 1996
House: House of Representatives
Portfolio: Small Business and Consumer Affairs
Commencement: The amendment contained in the Bill will be deemed
to have commenced on 1 July 1983.
To transfer the definition of 'prescribed division' from the Excise
By-Laws to the Excise Tariff Act 1921 (the Principal Act).
The amendment contained in the Bill is of a technical nature and, according
to the Explanatory Memorandum for the Bill, results from advice from the
Attorney-Generals' Department that the amendment may be necessary to ensure
the validity of decisions made since 1 July 1983.
The amendment relates to the assessment of the excise duty payable on
crude oil under the crude oil excise regime that applied from 1 July 1983.The
excise scheme was substantially changed from 1 July 1990 with the introduction
of a Resource Rent Tax for major production areas.
The excise scheme was very complex, with different rates applying for
old and new oil, with new oil being that produced from fields discovered
on or after 18 September 1975. The rate of excise was lower for new oil
to encourage exploration. A category of intermediate oil was subsequently
introduced to smooth out the differences in excise payable on new and
old oil.
The actual amount of excise payable also depended on the import parity
price for oil. As a result, excise was calculated by reference to a base
amount of excise which is then adjusted to reflect any additional excise
payable. This is done by dividing the year into 36 periods (prescribed
divisions) with the amount of excise payable being attributed to each
period which took account of any excise above the base amount payable
during the period.
As noted in the Explanatory Memorandum to the Bill, the definition of
prescribed division is currently contained in the Excise By-Laws rather
than the Principal Act and the Attorney-Generals' Department has provided
advice that to ensure the safety of revenue the definition should be transferred
to the Principal Act to remove any doubt that the definition applies to
new and intermediate oil as well as old oil.
Item 2 of Schedule 1 will repeal the current definition of prescribed
division, which refers to the definition in the By-Laws, and substitute
a new definition that reflects that currently contained in the By-Laws.
Bills Digest Service
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: 22 May 1996
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