Bills Digest 84 1995-96 Excise Tariff Amendment Bill 1996

Numerical Index | Alphabetical Index

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


Passage History

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.

Main Provisions

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

Contact Officer and Copyright Details

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 Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

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

Back to top