2004-2005-2006 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 (Treasury) A Bill for an Act to amend the law relating to excise, and for other purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Amendments 3 Part 1--Amendments 3 Administrative Decisions (Judicial Review) Act 1977 3 Aviation Fuel Revenues (Special Appropriation) Act 1988 3 Energy Grants (Cleaner Fuels) Scheme Act 2004 3 Excise Act 1901 5 Fuel Tax Act 2006 24 Petroleum Excise (Prices) Act 1987 25 Sea Installations Act 1987 25 Taxation Administration Act 1953 25 Part 2--Application, saving and transitional provisions 27 Schedule 2--Repeal of Acts 30 Coal Excise Act 1949 30 Distillation Act 1901 30 Fuel Blending (Penalty Surcharge) Act 1997 30 Fuel Misuse (Penalty Surcharge) Act 1997 30 Fuel (Penalty Surcharges) Administration Act 1997 30 Fuel Sale (Penalty Surcharge) Act 1997 30 Spirits Act 1906 30 i Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] 1 excise, and for other purposes 2 The Parliament of Australia enacts: 3 1 Short title 4 This Act may be cited as the Excise Laws Amendment (Fuel Tax 5 Reform and Other Measures) Act 2006. 6 2 Commencement 7 (1) Each provision of this Act specified in column 1 of the table 8 commences, or is taken to have commenced, in accordance with 9 column 2 of the table. Any other statement in column 2 has effect 10 according to its terms. 11 12 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1, 1 July 2006. 1 July 2006 items 1 to 91 3. Schedule 1, Immediately after the commencement of the 1 July 2006 items 92 to 94 Fuel Tax Act 2006. 4. Schedule 1, 1 July 2006. 1 July 2006 items 95 to 109 5. Schedule 2 1 July 2006. 1 July 2006 Note: This table relates only to the provisions of this Act as originally 1 passed by the Parliament and assented to. It will not be expanded to 2 deal with provisions inserted in this Act after assent. 3 (2) Column 3 of the table contains additional information that is not 4 part of this Act. Information in this column may be added to or 5 edited in any published version of this Act. 6 3 Schedule(s) 7 Each Act that is specified in a Schedule to this Act is amended or 8 repealed as set out in the applicable items in the Schedule 9 concerned, and any other item in a Schedule to this Act has effect 10 according to its terms. 11 2 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 1 Schedule 1--Amendments 2 Part 1--Amendments 3 Administrative Decisions (Judicial Review) Act 1977 4 1 Paragraph (e) of Schedule 1 5 Omit "Coal Excise Act 1949". 6 Aviation Fuel Revenues (Special Appropriation) Act 1988 7 2 Section 3 (definition of aviation gasoline) 8 Omit "item 11 of the Schedule to the Excise Tariff Act 1921 as gasoline 9 for use as a fuel in aircraft", substitute "subitem 10.6 of the Schedule to 10 the Excise Tariff Act 1921 (about gasoline for use as fuel in aircraft)". 11 3 Section 3 (definition of aviation kerosene) 12 Omit "item 11 of the Schedule to the Excise Tariff Act 1921 as kerosene 13 for use as a fuel in aircraft", substitute "subitem 10.17 of the Schedule 14 to the Excise Tariff Act 1921 (about kerosene for use as fuel in 15 aircraft)". 16 Energy Grants (Cleaner Fuels) Scheme Act 2004 17 4 After paragraph 2A(a) 18 Insert: 19 (aa) grants to fully offset any excise duty or customs duty payable 20 in relation to the manufacture or importation of renewable 21 diesel for which a provisional entitlement arises during the 22 period starting on 1 July 2006 and ending on 30 June 2011; 23 5 Paragraph 2A(b) 24 Omit "LPG or methanol", substitute "LPG, methanol or renewable 25 diesel". 26 6 Subsection 4(1) (definition of biodiesel) 27 Repeal the definition, substitute: 28 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 3 [Page Break] Part 1 Amendments biodiesel means fuel that: 1 (a) is manufactured by chemically altering vegetable oils or 2 animal fats (including recycled oils from these sources) to 3 form mono-alkyl esters; and 4 (b) complies with the applicable fuel standard for such fuel. 5 7 Subsection 4(1) (paragraph (a) of the definition of cleaner 6 fuel) 7 Omit "LPG or methanol", substitute "LPG, methanol or renewable 8 diesel". 9 8 Subsection 4(1) (paragraph (a) of the definition of end day) 10 Omit "LPG or methanol", substitute "LPG, methanol or renewable 11 diesel". 12 9 Subsection 4(1) (definition of manufacture) 13 Omit "petroleum blending as described in section 77H", substitute "fuel 14 blending as described in section 77G". 15 10 Subsection 4(1) 16 Insert: 17 renewable diesel has the meaning given by section 4A. 18 11 Subsection 4(1) (after paragraph (a) of the definition of 19 start day) 20 Insert: 21 (aaa) for renewable diesel--1 July 2006; or 22 12 At the end of Part 1 23 Add: 24 4A Definition of renewable diesel 25 (1) For the purposes of this Act, renewable diesel means liquid fuel 26 that: 27 (a) is manufactured by chemically altering vegetable oils or 28 animal fats (including recycled oils from these sources) 29 through a process of hydrogenation (whether or not that 30 process was part of some other process); and 31 4 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 (b) complies with the applicable fuel standard for diesel. 1 (2) If: 2 (a) a quantity of liquid fuel (the final fuel) is manufactured; and 3 (b) a part of the final fuel was manufactured by chemically 4 altering vegetable oils or animal fats (including recycled oils 5 from these sources) through a process of hydrogenation; and 6 (c) a part of the final fuel is diesel; and 7 (d) the final fuel satisfies the applicable fuel standard for diesel; 8 then the amount of the final fuel worked out in accordance with the 9 regulations is taken to be renewable diesel for the purposes of this 10 Act. 11 13 Subsection 8(1) 12 Omit "LPG or methanol" (first occurring), substitute "LPG, methanol or 13 renewable diesel". 14 14 Subsection 8(1) (after table item 1) 15 Insert: 16 1A Renewable diesel The period: 100% of biodiesel's (a) starting at the start excise duty of renewable rate. diesel's start day; and (b) ending at the end of 30 June 2011. 15 Subsection 8(1) (table items 2 to 5) 17 Omit "LPG or methanol", substitute "LPG, methanol or renewable 18 diesel". 19 Excise Act 1901 20 16 Subsection 4(1) (definition of clean fuel) 21 Repeal the definition. 22 17 Subsection 4(1) (definition of designated fuel) 23 Repeal the definition. 24 18 Subsection 4(1) (definition of Excise Acts) 25 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 5 [Page Break] Part 1 Amendments Omit "(including the Distillation Act 1901)". 1 19 Subsection 4(1) (definition of fuel) 2 Omit "item 11, 12 or 17", substitute "item 10, 20 or 21". 3 20 Subsection 4(1) (definition of marker) 4 Repeal the definition. 5 21 Subsection 4(1) (definition of other excisable beverage) 6 Repeal the definition. 7 22 Subsection 4(1) (definition of Spirit) 8 Omit "item 2 (other than subitem 2(H))", substitute "item 3". 9 23 Section 24 10 Repeal the section, substitute: 11 24 Excisable goods and goods liable to duties of Customs may be 12 used in manufacturing excisable goods 13 (1) Excisable goods may, while subject to the CEO's control, be used 14 in the manufacture of other excisable goods in accordance with this 15 Act. 16 (2) Goods liable to duties of Customs may, while subject to control of 17 the Customs, be used in the manufacture of excisable goods in 18 accordance with this Act. 19 (3) The regulations may prescribe conditions on the use of: 20 (a) excisable goods, while subject to the CEO's control, in the 21 manufacture of other excisable goods; or 22 (b) goods liable to duties of Customs, while subject to the 23 control of the Customs, in the manufacture of excisable 24 goods. 25 24 Section 32 26 Repeal the section. 27 25 Section 37 28 Repeal the section. 29 6 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 26 Paragraph 39A(2)(d) 1 Omit "an employee of the applicant", substitute "a natural person". 2 27 After paragraph 39A(2)(f) 3 Insert: 4 (fa) if the applicant is a natural person--he or she does not have, 5 and he or she does not have available to him or her, the skills 6 and experience to carry out the activity that would be 7 authorised by the licence; or 8 (fb) if the applicant is a company--the company does not have 9 available to it the skills and experience to carry out the 10 activity that would be authorised by the licence; or 11 28 After paragraph 39A(2)(i) 12 Insert: 13 (ia) the applicant would not have a market for goods of a kind the 14 licence would relate to; or 15 29 Paragraphs 39B(a) and (b) 16 Omit "making the application", substitute "the application was made". 17 30 After paragraph 39B(b) 18 Insert: 19 (ba) the extent of the person's compliance, within 4 years before 20 the application was made, with any law administered by the 21 CEO; and 22 31 After paragraph 39B(c) 23 Insert: 24 (ca) the person's financial resources; and 25 32 Paragraph 39B(e) 26 Before "any", insert "if the person is the applicant--". 27 33 Paragraph 39B(f) 28 Omit "where", substitute "if the person is the applicant and". 29 34 Paragraphs 39C(a) and (b) 30 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 7 [Page Break] Part 1 Amendments Omit "making the application", substitute "the application was made". 1 35 After paragraph 39C(b) 2 Insert: 3 (ba) the extent of the company's compliance, within 4 years 4 before the application was made, with any law administered 5 by the CEO; and 6 36 After paragraph 39C(c) 7 Insert: 8 (ca) the company's financial resources; and 9 37 Section 39E 10 Repeal the section, substitute: 11 39E Duration of licences 12 (1) A licence comes into force on the day it is granted. 13 (2) It remains in force, unless cancelled earlier, until the end of the 14 next 31 March after the second anniversary of the day on which it 15 is granted. 16 Example 1: A licence is granted on 15 April 2007. It ends on 31 March 2010. 17 Example 2: A licence is granted on 15 March 2007. It ends on 31 March 2009. 18 38 Subsection 39F(1) 19 Omit "manufacturer". 20 Note: The heading to section 39F is altered by omitting "manufacturer". 21 39 Subsection 39F(2) 22 Omit "manufacturer". 23 40 At the end of section 39F 24 Add: 25 Automatic extension of licence 26 (4) If the Collector has not decided an application for renewal of a 27 licence before the end of the expiry day, the licence continues in 28 force until the Collector decides the application. 29 8 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 Period of renewal 1 (5) If the Collector renews a licence, it is renewed for a period of 3 2 years, unless cancelled earlier, starting on the day after the expiry 3 day. 4 Example: A licence is due to expire on 31 March 2008 (the expiry day). On 5 1 March 2008 the licence holder applies to renew the licence. The 6 Collector has not decided the application by the end of 31 March 7 2008. 8 The licence continues in force automatically past 31 March 2008 until 9 the Collector decides the application. 10 On 15 April 2008 the Collector decides to renew the licence. The 3 11 year period of renewal starts on 1 April 2008. 12 Licence may be renewed more than once 13 (6) A licence may be renewed more than once under this section. 14 Definition 15 (7) In this section: 16 expiry day, in relation to a licence, means the 31 March on which 17 the licence is due to expire. 18 41 Paragraph 39G(1)(d) 19 Omit "an employee of the licence holder", substitute "a natural person". 20 42 After paragraph 39G(1)(f) 21 Insert: 22 (fa) if the licence holder is a natural person--he or she does not 23 have, and he or she does not have available to him or her, the 24 skills and experience to carry out the activity that is 25 authorised by the licence; or 26 (fb) if the licence holder is a company--the company does not 27 have available to it the skills and experience to carry out the 28 activity that is authorised by the licence; or 29 43 After paragraph 39G(1)(i) 30 Insert: 31 (ia) the licence holder does not have a market for goods of a kind 32 the licence relates to; or 33 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 9 [Page Break] Part 1 Amendments 44 After paragraph 39H(b) 1 Insert: 2 (ba) the extent of the person's compliance, within 4 years before 3 the day of the Collector's consideration, with any law 4 administered by the CEO; and 5 (bb) the person's financial resources; and 6 45 After paragraph 39I(b) 7 Insert: 8 (ba) the extent of the company's compliance, within 4 years 9 before the day of the Collector's consideration, with any law 10 administered by the CEO; and 11 (bb) the company's financial resources; and 12 46 Paragraph 39K(6)(d) 13 Omit ", in a manner prescribed by the regulations,". 14 47 Section 47 15 Repeal the section. 16 48 Section 48 17 Repeal the section. 18 49 Subsection 50(1) 19 After "manufacturer", insert ", licensed producer and licensed dealer". 20 Note: The heading to section 50 is replaced by the heading "Record keeping". 21 50 At the end of subsection 54(1) 22 Add: 23 Note: For provisions about collection and recovery of the duty, see Part 4-15 24 in Schedule 1 to the Taxation Administration Act 1953. 25 51 At the end of section 54 26 Add: 27 (3) If excisable goods are delivered to a relevant traveller (within the 28 meaning of section 61E) under a permission under that section, 29 then, despite subsection (1) of this section, the relevant traveller 30 (and no-one else) is liable to pay excise duty on the goods. 31 10 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 52 Section 57 1 Repeal the section. 2 53 At the end of section 58 3 Add: 4 (6) In subsections (4) and (5): 5 other excisable beverage means goods covered by item 2 of the 6 Schedule to the Excise Tariff Act 1921. 7 54 Section 59 8 Omit "section 59A", substitute "sections 59A and 59AA". 9 55 After section 59A 10 Insert: 11 59AA Payment of duty by relevant travellers 12 (1) Excise duty on goods payable by a relevant traveller under 13 subsection 54(3) must be paid at the rate in force at the time the 14 goods are taken by the relevant traveller for reporting to an officer 15 of Customs doing duty in relation to clearance through Customs of 16 the personal baggage of the relevant traveller. 17 (2) The excise duty is due and payable at that time. 18 Note: For provisions about collection and recovery of the duty, see Part 4-15 19 in Schedule 1 to the Taxation Administration Act 1953. 20 (3) In this section: 21 officer of Customs has the same meaning as in section 61E. 22 relevant traveller has the same meaning as in section 61E. 23 56 Paragraph 59B(1)(b) 24 Omit ", under regulations made by virtue of section 59D,". 25 57 At the end of subsections 60(1), (1A), (1B) and (1C) 26 Add: 27 Note: For provisions about collection and recovery of the amount, see 28 Part 4-15 in Schedule 1 to the Taxation Administration Act 1953. 29 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 11 [Page Break] Part 1 Amendments 58 Subsections 60(2) and (3) 1 Repeal the subsections. 2 59 After subsection 61A(2) 3 Insert: 4 (2AA) A Collector must not give permission under subsection (1) or (2) in 5 circumstances prescribed by the regulations. 6 60 At the end of Part VI 7 Add: 8 65 Rules for working out the volume or weight etc. of excisable 9 goods 10 Making of rules 11 (1) The CEO may, by legislative instrument, determine rules for 12 working out one or more of the following: 13 (a) the volume of excisable goods; 14 (b) the weight of excisable goods; 15 (c) the percentage by volume of alcohol in excisable goods. 16 Note: The rules may make different provision with respect to different 17 matters or different classes of matters (see subsection 33(3A) of the 18 Acts Interpretation Act 1901). 19 (2) The rules may, for example: 20 (a) specify sampling methods; and 21 (b) permit minor variations between: 22 (i) the nominated or labelled volume of excisable goods 23 and the actual volume of the goods; or 24 (ii) the nominated or labelled weight of excisable goods and 25 the actual weight of the goods; or 26 (iii) the nominated or labelled volume of alcohol in 27 excisable goods and the actual volume of alcohol in the 28 goods; 29 so as to provide for unavoidable variations directly 30 attributable to the manufacturing process. 31 12 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 Application of rules 1 (3) The rules apply to excisable goods entered for home consumption 2 on or after the time when the rules take effect. 3 Note: Section 12 of the Legislative Instruments Act 2003 deals with when a 4 legislative instrument takes effect. 5 61 Section 67 6 Repeal the section. 7 62 Section 69 8 Repeal the section. 9 63 Section 70 10 Repeal the section. 11 64 Section 75 12 Omit "as prescribed". 13 65 At the end of Part VII 14 Add: 15 77AA Tobacco leaf stock may be checked 16 (1) If a person has or had possession, custody or control of tobacco 17 leaf, a Collector may request, in writing, the person to account for 18 the tobacco leaf. 19 Payment of duty equivalent 20 (2) If the person does not account for the tobacco leaf to the 21 satisfaction of the Collector, the person must, on demand in writing 22 made by a Collector, pay to the Commonwealth an amount equal to 23 the amount of the duty that would have been payable on the 24 deficient tobacco leaf if: 25 (a) it had been manufactured into excisable goods classified to 26 subitem 5.5 of the Schedule to the Excise Tariff Act 1921; 27 and 28 (b) it had been entered for home consumption on the day on 29 which the Collector made the demand. 30 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 13 [Page Break] Part 1 Amendments Note: For provisions about collection and recovery of the amount, see 1 Part 4-15 in Schedule 1 to the Taxation Administration Act 1953. 2 (3) In subsection (2): 3 deficient tobacco leaf means the weight, in kilograms, of the 4 tobacco leaf that has not been accounted for to the satisfaction of 5 the Collector who made the request. 6 No effect on other liabilities 7 (4) This section does not affect the liability of a person arising under 8 or because of: 9 (a) any other provision of this Act; or 10 (b) a security given under this Act. 11 Request or demand not a legislative instrument 12 (5) The following are not legislative instruments: 13 (a) a request under subsection (1); 14 (b) a demand under subsection (2). 15 66 Section 77A (definition of alcoholic beverage) 16 Repeal the definition, substitute: 17 alcoholic beverage means goods classified to item 1 or 2, or 18 subitem 3.1, 3.2 or 3.10, of the Schedule to the Excise Tariff Act 19 1921. 20 67 Section 77A (definition of bulk container) 21 Repeal the definition. 22 68 Section 77A (definition of container) 23 Repeal the definition. 24 69 Section 77B 25 Repeal the section. 26 70 Section 77C 27 Repeal the section. 28 71 Section 77FB 29 14 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 Repeal the section. 1 72 At the end of Part VIIA 2 Add: 3 77FC Repackaged beer 4 If: 5 (a) beer classified to subitem 1.2, 1.6 or 1.11 of the Schedule to 6 the Excise Tariff Act 1921 is delivered for home consumption 7 (beer packaged in an individual container exceeding 48 8 litres); and 9 (b) the beer is repackaged into sealed individual containers not 10 exceeding 48 litres; 11 then, for the purposes of this Act, that repackaging is taken to be 12 the manufacture of beer. 13 Note: Subitems 1.1, 1.5 and 1.10 of that Schedule set out the rates of duty 14 for beer packaged in individual containers not exceeding 48 litres. 15 73 After Part VIIA 16 Insert: 17 Part VIIAA--Special provisions relating to spirits 18 19 77FD Spirit for fortifying Australian wine or Australian grape must 20 Grant of approval 21 (1) For the purposes of subitem 3.5 of the Schedule to the Excise Tariff 22 Act 1921, the CEO may grant a person a written approval to use 23 spirit for fortifying Australian wine or Australian grape must. 24 (2) The approval must be for: 25 (a) the use of a one-off specified quantity of spirit; or 26 (b) the use of a specified quantity of spirit in a calendar month or 27 a calendar year. 28 Note: See also section 77FH (about payment of duty equivalent if the spirit 29 is not used for the approved purpose). 30 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 15 [Page Break] Part 1 Amendments Conditions 1 (3) The CEO must specify in an approval any conditions to which the 2 approval is subject. 3 Approval not a legislative instrument 4 (4) An approval under subsection (1) is not a legislative instrument. 5 77FE Spirit for an industrial, manufacturing, scientific, medical, 6 veterinary or educational purpose--class determinations 7 (1) The CEO may, by legislative instrument, determine a class of 8 persons for the purposes of subitem 3.6 of the Schedule to the 9 Excise Tariff Act 1921. 10 (2) For the purposes of that subitem, the determination may also 11 specify a quantity of spirit that a person included in the class may 12 use in a calendar month or a calendar year. 13 Note: See also section 77FH (about payment of duty equivalent if spirit is 14 delivered to a person included in such a class and the person does not 15 use the spirit for an industrial, manufacturing, scientific, medical, 16 veterinary or educational purpose). 17 77FF Spirit for an industrial, manufacturing, scientific, medical, 18 veterinary or educational purpose--specific approvals 19 Grant of approval 20 (1) For the purposes of subitem 3.7 of the Schedule to the Excise Tariff 21 Act 1921, the CEO may grant a person a written approval to use 22 spirit for a specified industrial, manufacturing, scientific, medical, 23 veterinary or educational purpose. 24 (2) The approval must be for: 25 (a) the use of a one-off specified quantity of spirit; or 26 (b) the use of a specified quantity of spirit in a calendar month or 27 a calendar year. 28 Note: See also section 77FH (about payment of duty equivalent if the spirit 29 is not used for the approved purpose). 30 16 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 Conditions 1 (3) The CEO must specify in an approval any conditions to which the 2 approval is subject. 3 Approval not a legislative instrument 4 (4) An approval under subsection (1) is not a legislative instrument. 5 Guidelines 6 (5) The CEO must, by legislative instrument, develop guidelines that 7 he or she must have regard to when deciding whether or not to 8 grant an approval under subsection (1). 9 77FG Denatured spirits 10 (1) For the purposes of subitem 3.8 of the Schedule to the Excise Tariff 11 Act 1921, the CEO may, by legislative instrument, determine a 12 formula for the denaturing of spirits. 13 (2) The CEO must give the greatest weight to the protection of the 14 revenue in determining a formula under subsection (1). 15 77FH When an amount is payable on spirit covered by 16 section 77FD, 77FE or 77FF 17 (1) If spirit classified to subitem 3.5 or 3.7 of the Schedule to the 18 Excise Tariff Act 1921 is delivered for home consumption, a 19 Collector may request, in writing, the person holding the approval 20 concerned to account to the satisfaction of the Collector that the 21 spirit has been used for the purpose specified in the approval. 22 (2) If spirit classified to subitem 3.6 of the Schedule to the Excise 23 Tariff Act 1921 is: 24 (a) delivered for home consumption; and 25 (b) delivered to a person who is included in a class determined 26 under section 77FE of this Act; 27 a Collector may request, in writing, the person to account to the 28 satisfaction of the Collector that the spirit has been used for an 29 industrial, manufacturing, scientific, medical, veterinary or 30 educational purpose. 31 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 17 [Page Break] Part 1 Amendments Payment of duty equivalent 1 (3) If a person does not account as requested under subsection (1) or 2 (2), the person must, on demand in writing made by a Collector, 3 pay to the Commonwealth an amount equal to the amount of the 4 duty that would have been payable on the spirit if: 5 (a) there had been no approval or determination (as the case 6 requires); and 7 (b) the spirit had been entered for home consumption on the day 8 on which the Collector made the demand. 9 Note 1: Subitems 3.1, 3.2 and 3.10 of the Schedule to the Excise Tariff Act 10 1921 set out the non-free rates of duty for spirit. 11 Note 2: For provisions about collection and recovery of the amount, see 12 Part 4-15 in Schedule 1 to the Taxation Administration Act 1953. 13 No effect on other liabilities 14 (4) This section does not affect the liability of a person arising under 15 or because of: 16 (a) any other provision of this Act; or 17 (b) a security given under this Act. 18 Request or demand not a legislative instrument 19 (5) The following are not legislative instruments: 20 (a) a request under subsection (1) or (2); 21 (b) a demand under subsection (3). 22 77FI Delivery from CEO's control of brandy, whisky or rum 23 (1) Brandy, whisky or rum manufactured in Australia must not be 24 delivered from the CEO's control unless it has been matured by 25 storage in wood for at least 2 years. 26 (2) In this section: 27 brandy means a spirit distilled from grape wine in such a manner 28 that the spirit possesses the taste, aroma and other characteristics 29 generally attributed to brandy. 30 grape wine has the same meaning as in Subdivision 31-A of the A 31 New Tax System (Wine Equalisation Tax) Act 1999. 32 18 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 rum means a spirit obtained by the distillation of a fermented 1 liquor derived from the products of sugar cane, being distillation 2 carried out in such a manner that the spirit possesses the taste, 3 aroma and other characteristics generally attributed to rum. 4 whisky means a spirit obtained by the distillation of a fermented 5 liquor of a mash of cereal grain in such a manner that the spirit 6 possesses the taste, aroma and other characteristics generally 7 attributed to whisky. 8 77FJ Person must not abstract denaturing substances in spirit 9 classified to subitem 3.8 10 (1) A person commits an offence if: 11 (a) spirit classified to subitem 3.8 of the Schedule to the Excise 12 Tariff Act 1921 is delivered for home consumption; and 13 (b) the person abstracts the whole or a part of a denaturing 14 substance from the spirit; and 15 (c) the person has not been given permission by the CEO to 16 abstract the whole or the part of the denaturing substance. 17 Penalty: 50 penalty units. 18 (2) The CEO may, in writing, give a person permission to abstract the 19 whole or a part of a denaturing substance for the purposes of 20 paragraph (1)(c). 21 (3) A permission under subsection (2) is not a legislative instrument. 22 77FK Offence in relation to stills 23 (1) A person commits an offence if: 24 (a) the person does any of the following things: 25 (i) makes or commences to make any still; 26 (ii) removes, sets up or erects any still; 27 (iii) sells or otherwise disposes of, or purchases or otherwise 28 acquires any still, either by itself or with other property, 29 or as part of any premises; 30 (iv) imports any still; 31 (v) has possession, custody or control of any still; and 32 (b) the still is of a capacity exceeding 5 litres; and 33 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 19 [Page Break] Part 1 Amendments (c) the person is not a licensed manufacturer; and 1 (d) the person has not been given permission by the CEO to do 2 the thing. 3 Penalty: 50 penalty units. 4 (2) Subsection (1) does not apply to an act done by an officer in the 5 course of performing a function or exercising a power under this 6 Act or the Excise Tariff Act 1921. 7 Note: A defendant bears an evidential burden in relation to the matter in 8 subsection (2) (see subsection 13.3(3) of the Criminal Code). 9 (3) The CEO may, in writing, give a person permission to do a thing 10 mentioned in paragraph (1)(a). 11 (4) A permission under subsection (3) is not a legislative instrument. 12 77FL Offence in relation to describing spirits as "old" or "very old" 13 (1) A person commits an offence if the person: 14 (a) does either of the following: 15 (i) describes any spirit as "old", or in a way which could 16 reasonably lead to the belief that the spirit has been 17 matured for at least 5 years; 18 (ii) describes any spirit as "very old", or in a way which 19 could reasonably lead to the belief that the spirit has 20 been matured for at least 10 years; and 21 (b) does so in relation to trade or commerce between Australia 22 and another country, between 2 States, between a State and a 23 Territory or between 2 Territories. 24 Penalty: 10 penalty units. 25 (2) Subparagraph (1)(a)(i) does not apply if the spirit has been matured 26 by storage in wood for at least 5 years. 27 Note: A defendant bears an evidential burden in relation to the matter in 28 subsection (2) (see subsection 13.3(3) of the Criminal Code). 29 (3) Subparagraph (1)(a)(ii) does not apply if the spirit has been 30 matured by storage in wood for at least 10 years. 31 Note: A defendant bears an evidential burden in relation to the matter in 32 subsection (3) (see subsection 13.3(3) of the Criminal Code). 33 20 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 (4) Absolute liability applies to paragraph (1)(b). 1 74 Part VIIB (heading) 2 Repeal the heading, substitute: 3 Part VIIB--Special provisions relating to fuel 4 75 Sections 77G to 77J 5 Repeal the sections, substitute: 6 77G Fuel blending is to be treated as manufacture 7 (1) For greater certainty so far as concerns the application of the 8 provisions of this Act, fuel blending to produce goods covered by 9 paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 is 10 taken to constitute the manufacture of those goods. 11 (2) Subsection (1) does not imply that, in the absence of such a 12 provision, the blending of substances (whether fuel products or 13 not) would not constitute the manufacture of the substance 14 produced by the blending. 15 (3) In this section: 16 fuel product means: 17 (a) any excisable goods classified to item 10, 15, 20 or 21 of the 18 Schedule to the Excise Tariff Act 1921; or 19 (b) any imported goods that would be classified to item 10 or 15 20 of that Schedule if they were manufactured in Australia. 21 77H Blending exemptions 22 (1) Goods that are the product of the blending of 1 or more eligible 23 goods (with or without other substances) are taken not to be goods 24 covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 25 1921 if: 26 (a) excise duty or a duty of Customs has been paid at the same 27 rate on all the eligible goods and the other substances (if 28 any); or 29 (b) the goods are covered by a determination in force under 30 subsection 95-5(1) of the Fuel Tax Act 2006. 31 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 21 [Page Break] Part 1 Amendments (2) However, subsection (1) does not apply if any of the eligible goods 1 or other substances on which excise duty or a duty of Customs has 2 been paid are: 3 (a) denatured ethanol for use as fuel in an internal combustion 4 engine; or 5 (b) biodiesel; or 6 (c) taxable fuel for which any entity has been entitled to a fuel 7 tax credit under the Fuel Tax Act 2006. 8 Legislative instrument 9 (3) Goods that are the product of the blending of 1 or more eligible 10 goods (with or without other substances) are taken not to be goods 11 covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 12 1921 if the circumstances specified in an instrument under 13 subsection (4) exist. 14 (4) The CEO may, by legislative instrument, specify circumstances for 15 the purposes of subsection (3). 16 Definition 17 (5) In this section: 18 eligible goods means goods covered by paragraph 10(a), (b), (c), 19 (d), (e) or (f) of the Schedule to the Excise Tariff Act 1921. 20 77J Goods that are not covered by subitem 10.25, 10.26, 10.27, 10.28 21 or 10.30 22 If: 23 (a) goods (the delivered goods) classified to subitem 10.25, 24 10.26, 10.27, 10.28 or 10.30 of the Schedule to the Excise 25 Tariff Act 1921 are delivered for home consumption; and 26 (b) a person uses the delivered goods as a solvent; and 27 (c) the person manufactures or produces other goods by carrying 28 out a recycling process on the delivered goods; and 29 (d) the other goods are for use as a solvent by the person; and 30 (e) apart from this section, the other goods would be classified to 31 the subitem of that Schedule that applied to the delivered 32 goods; 33 then that subitem does not apply to the other goods. 34 22 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 76 Section 77K 1 Omit "item 17", substitute "item 20 or 21". 2 77 Section 77K 3 Omit "item 11", substitute "item 10". 4 78 After subsection 78(1) 5 Insert: 6 (1A) Regulations made for the purposes of subsection (1) may make 7 provision for and in relation to the CEO granting approvals. 8 79 At the end of section 78 9 Add: 10 (3) Excise duty is taken to be remitted in respect of fuel if: 11 (a) the fuel is used in the manufacture of goods that are not 12 excisable goods; and 13 (b) the fuel has been chemically transformed (other than by 14 combustion) in that manufacture. 15 80 Section 78AAAA 16 Repeal the section. 17 81 Section 105 18 Repeal the section. 19 82 Section 107AA (definition of forfeited goods) 20 Repeal the definition, substitute: 21 forfeited goods means goods forfeited to the Crown under 22 section 116. 23 83 Section 107AA (definition of offence) 24 Repeal the definition, substitute: 25 offence means an offence against this Act. 26 84 Subsection 107FF(9) (definition of special forfeited goods) 27 Repeal the definition, substitute: 28 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 23 [Page Break] Part 1 Amendments special forfeited goods means goods forfeited to the Crown under 1 paragraph 116(1)(da). 2 85 After paragraph 116(1)(d) 3 Insert: 4 (da) a still made, removed, set up, erected, sold or otherwise 5 disposed of, purchased or otherwise acquired, imported, or in 6 the possession, custody or control of a person, in 7 contravention of section 77FK; 8 86 Subsections 120(1A) and (1B) 9 Repeal the subsections. 10 87 Subsections 120(4A) to (9) 11 Repeal the subsections. 12 88 Subsection 159(6) (definition of excise law) 13 Repeal the definition, substitute: 14 excise law means any Excise Act. 15 89 Paragraph 162C(1)(e) 16 After "section 60", insert ", 77AA or 77FH". 17 90 After paragraph 162C(1)(e) 18 Insert: 19 (eaa) a decision of the CEO to refuse to give an approval under 20 section 77FD or 77FF; 21 (eaaa) a decision of the CEO to specify conditions in an approval 22 given under section 77FD or 77FF; 23 91 Section 163 24 Repeal the section. 25 Fuel Tax Act 2006 26 92 Section 110-5 (paragraph (c) of the definition of taxable 27 fuel) 28 Omit "or 17", substitute ", 20 or 21". 29 24 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Amendments Part 1 93 Section 110-5 (note to the definition of taxable fuel) 1 Omit "17", substitute "20". 2 94 Section 110-5 (at the end of the note to the definition of 3 taxable fuel) 4 Add "Item 21 of that Schedule deals with certain condensate.". 5 Petroleum Excise (Prices) Act 1987 6 95 Subsection 4(1) (definition of excisable crude petroleum 7 oil) 8 Omit "paragraph 17A(2) in", substitute "subitem 20.5, 20.6 or 20.7 of". 9 Sea Installations Act 1987 10 96 The Schedule 11 Omit "Spirits Act 1906". 12 Taxation Administration Act 1953 13 97 Subsection 2(2) 14 Repeal the subsection, substitute: 15 (2) Despite the definition of taxation law in subsection (1), an Excise 16 Act (as defined in subsection 4(1) of the Excise Act 1901) is not a 17 taxation law for the purposes of Part III of, and Subdivision 284-B 18 in Schedule 1 to, this Act. 19 98 Subsection 250-10(2) in Schedule 1 (table items 21 and 23) 20 Repeal the items. 21 99 Subsection 250-10(2) in Schedule 1 (table item 24B) 22 Repeal the item, substitute: 23 24A accounting for 60(1), (1A), Excise Act 1901 excisable goods (1B) and (1C) 24B tobacco leaf stock 77AA Excise Act 1901 deficiency 24C accounting for spirit 77FH Excise Act 1901 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 25 [Page Break] Part 1 Amendments 100 Subsection 250-10(2) in Schedule 1 (table item 37) 1 Repeal the item. 2 26 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Application, saving and transitional provisions Part 2 1 Part 2--Application, saving and transitional 2 provisions 3 101 Application--biodiesel and renewable diesel 4 The amendments made by items 4 to 8 and 10 to 15 apply in relation to 5 fuel imported or manufactured after the commencement of this item. 6 102 Application and transitional--licences 7 Licence applications 8 (1) The amendments made by items 26 to 36 apply in relation to 9 applications made after the commencement of this item. 10 Period of new licences 11 (2) The amendment made by item 37 applies to licences granted after the 12 commencement of this item (whether the application for the licence was 13 made before or after that commencement). 14 Renewal of licences 15 (3) The amendments made by items 38 to 40 apply in relation to renewal 16 applications made after the commencement of this item (whether the 17 licence was granted before or after that commencement). 18 Suspension or cancellation of licences 19 (4) The amendments made by items 41 to 45 apply in relation to licences 20 granted before or after the commencement of this item. 21 Existing licences to end on 31 March 2007 22 (5) A licence in force under Part IV of the Excise Act 1901 immediately 23 before the commencement of this item is taken to continue in force 24 under that Part until the end of 31 March 2007 (unless cancelled 25 earlier). 26 103 Application--record keeping 27 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 27 [Page Break] Part 2 Application, saving and transitional provisions The amendment made by item 49 applies in relation to producer 1 licences or dealer licences granted before or after the commencement of 2 this item. 3 104 Application--relevant travellers 4 The amendment made by item 51 applies in relation to goods delivered 5 to a relevant traveller after the commencement of this item (under a 6 permission given before or after that commencement). 7 105 Application--tobacco leaf 8 The amendment made by item 65 applies in relation to: 9 (a) tobacco leaf that a person has or had possession, custody or 10 control of after the commencement of this item; and 11 (b) tobacco leaf that a person had possession, custody or control 12 of immediately before the commencement of this item. 13 106 Saving--volume and strength of alcoholic beverages 14 Despite the amendments made by items 69 and 71, sections 77B and 15 77FB of the Excise Act 1901, as in force immediately before the 16 commencement of this item, continue in effect, after that 17 commencement, until the first set of rules made under section 65 of that 18 Act after that commencement take effect. 19 107 Application and transitional--repackaged beer 20 (1) The amendment made by item 72 applies in relation to repackaging that 21 occurs after the commencement of this item. 22 (2) Paragraph 77FC(a) of the Excise Act 1901, as added by this Act, is 23 taken to be satisfied if, before the commencement of this item, beer 24 classified to paragraph 1(C)(2) of the Schedule to the Excise Tariff Act 25 1921 was delivered for home consumption (beer packaged in an 26 individual container exceeding 48 litres). 27 108 Transitional--stabilised crude petroleum oil and 28 petroleum condensate 29 28 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Application, saving and transitional provisions Part 2 A reference in section 77K of the Excise Act 1901 to excise duty 1 attaching to stabilised crude petroleum oil or condensate under item 20 2 or 21 of the Schedule to the Excise Tariff Act 1921 is taken to include a 3 reference to excise duty that attached to stabilised crude petroleum oil 4 or condensate under item 17 of that Schedule before the commencement 5 of this item. 6 109 Saving--confidentiality 7 Despite the amendment made by item 88, section 159 of the Excise Act 8 1901, as in force immediately before the commencement of this item, 9 continues to apply after that commencement in relation to the following 10 that a person obtained in the course of official employment before that 11 commencement: 12 (a) protected information to the extent that the information was 13 disclosed or obtained under the Fuel (Penalty Surcharges) 14 Administration Act 1997 or regulations made under that Act; 15 (b) a protected document to the extent that the document was 16 made or given under, or for the purposes of, the Fuel 17 (Penalty Surcharges) Administration Act 1997 or regulations 18 made under that Act. 19 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 29 [Page Break] 1 Schedule 2--Repeal of Acts 2 3 1 Repeal of Acts 4 The Acts specified in this Schedule are repealed. 5 Coal Excise Act 1949 6 Distillation Act 1901 7 Fuel Blending (Penalty Surcharge) Act 1997 8 Fuel Misuse (Penalty Surcharge) Act 1997 9 Fuel (Penalty Surcharges) Administration Act 1997 10 Fuel Sale (Penalty Surcharge) Act 1997 11 Spirits Act 1906 12 30 Excise Laws Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006