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
Except to the extent of the uses permitted under the
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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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