2004-2005-2006 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 (Treasury) A Bill for an Act to amend the Excise Tariff Act 1921, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Amendments 3 Excise Tariff Act 1921 3 i Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] 1 1921, and for related purposes 2 The Parliament of Australia enacts: 3 1 Short title 4 This Act may be cited as the Excise Tariff 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 Tariff 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 41 3. Schedule 1, 1 November 2005. 1 November items 42 to 44 2005 4. Schedule 1, 1 July 2006. 1 July 2006 items 45 to 47 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published version of this Act. 6 3 Schedule(s) 7 Each Act that is specified in a Schedule to this Act is amended or 8 repealed as set out in the applicable items in the Schedule 9 concerned, and any other item in a Schedule to this Act has effect 10 according to its terms. 11 2 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] 1 Schedule 1--Amendments 2 3 Excise Tariff Act 1921 4 1 Section 2 5 Omit "the Distillation Act 1901, the Petroleum Revenue Act 1985, the 6 Petroleum Excise (Prices) Act 1987 and the Coal Excise Act 1949", 7 substitute "the Petroleum Revenue Act 1985 and the Petroleum Excise 8 (Prices) Act 1987". 9 2 Subsection 3(1) (definition of biodiesel) 10 Repeal the definition, substitute: 11 biodiesel means fuel manufactured by chemically altering 12 vegetable oils or animal fats (including recycled oils from these 13 sources) to form mono-alkyl esters. 14 3 Subsection 3(1) (definition of delayed-entry oil) 15 Omit "paragraph 17(A)(1) in", substitute "subitem 20.1 of". 16 4 Subsection 3(1) (definition of intermediate oil) 17 Omit "paragraph 17(A)(1) in", substitute "subitem 20.1 of". 18 5 Subsection 3(1) (definition of marker) 19 Repeal the definition. 20 6 Subsection 3(1) (definition of new oil) 21 Omit "paragraph 17(A)(1) in", substitute "subitem 20.1 of". 22 7 Sections 5C and 5D 23 Repeal the sections. 24 8 Subsection 6A(1) (definition of relevant rate) 25 Omit "item, sub-item, paragraph or subparagraph of the Schedule other 26 than sub-item 1(BB) and items 17 and 20", substitute "item or subitem 27 of the Schedule other than item 20". 28 9 Paragraphs 6A(1A)(a) and (b) 29 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 3 [Page Break] Omit "item 11 or 12", substitute "item 10". 1 10 Subsection 6A(4) (definition of relevant rate) 2 Omit "or of section 6AAA and this section,". 3 11 Subsection 6A(4A) 4 Omit ", or under subsection (4) as modified by section 6AAA, in 5 respect of an item, sub-item, paragraph or subparagraph", substitute "in 6 respect of an item or subitem". 7 12 Subsection 6A(4B) 8 Omit ", or under subsection (4) as modified by section 6AAA,". 9 13 Subsection 6A(4C) 10 Omit ", or under subsection (4) as modified by section 6AAA,". 11 14 Subsection 6A(4D) 12 Omit "item, sub-item, paragraph or subparagraph in", substitute "item 13 or subitem of". 14 15 Subsection 6A(4D) 15 Omit ", and of subsection (4) as modified by section 6AAA,". 16 16 Subsection 6A(4D) 17 Omit "or in that subsection as so modified". 18 17 Subsection 6A(5) 19 Omit ", or that subsection as modified by section 6AAA,". 20 18 Subsection 6A(6) 21 Omit ", or that subsection as modified by section 6AAA,". 22 19 Subsection 6A(7) 23 Omit "or section 6AAA". 24 20 Subsection 6A(8) 25 Omit "or section 6AAA". 26 21 Section 6AAA 27 4 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Repeal the section. 1 22 Subsection 6B(1) (definition of old oil) 2 Omit "subparagraph 17(A)(2)(b) in", substitute "subitem 20.7 of". 3 23 Subsection 6B(10) 4 Omit "subparagraph 17(A)(2)(b) in", substitute "subitem 20.7 of". 5 24 Subsection 6C(10) 6 Omit "subparagraph 17(A)(2)(a) in", substitute "subitem 20.5 of". 7 25 Subsection 6D(10) 8 Omit "subparagraph 17(A)(2)(aa) in", substitute "subitem 20.6 of". 9 26 Section 6G 10 Repeal the section, substitute: 11 6G Duty payable on blended goods 12 (1) Duty payable under this Act on goods (the blended goods) that are 13 classified to subitem 10.7, 10.11, 10.12 or 10.30 of the Schedule is 14 worked out using the formula: 15 [Volume × $0.38143] ­ Previously paid duties 16 where: 17 previously paid duties means the sum of: 18 (a) the excise duties (if any) that have already been paid on 19 goods that are constituent elements of the blended goods and 20 that are classified to item 10 or 15 of the Schedule; and 21 (b) if Customs duties have been paid on imported goods that are 22 constituent elements of the blended goods and that would 23 have been classified to item 10 or 15 of the Schedule if 24 manufactured in Australia--so much of the Customs duties 25 paid as represents the application of the excise equivalent rate 26 in relation to those imported goods. 27 volume means the volume in litres of the blended goods 28 (disregarding any water that has been added to manufacture those 29 goods). 30 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 5 [Page Break] (2) In this section: 1 excise equivalent rate means so much of the rate of Customs duty 2 applicable to goods on their importation into Australia as is 3 equivalent to the rate of excise duty that would be payable on those 4 goods if manufactured in Australia. 5 27 Section 7 6 Repeal the section. 7 28 The Schedule (commencing note relating to imitations) 8 Repeal the note. 9 29 The Schedule (definition of N.E.I.) 10 Repeal the definition. 11 30 The Schedule (definition of Brandy) 12 Repeal the definition, substitute: 13 brandy means a spirit distilled from grape wine in such a manner 14 that the spirit possesses the taste, aroma and other characteristics 15 generally attributed to brandy. 16 31 The Schedule (definition of Fruit Brandy) 17 Repeal the definition. 18 32 The Schedule 19 Insert: 20 grape wine has the same meaning as in Subdivision 31-A of the A 21 New Tax System (Wine Equalisation Tax) Act 1999. 22 33 The Schedule (definition of Liqueur) 23 Repeal the definition. 24 34 The Schedule 25 Insert: 26 lubricant/fluid/oil products means the following: 27 (a) lubricant base oils; 28 6 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] (b) prepared lubricant additives containing carrier oils; 1 (c) lubricants for engines, gear sets, pumps and bearings; 2 (d) hydraulic fluids; 3 (e) brake fluids; 4 (f) transmission oils; 5 (g) transformer and heat transfer oils. 6 35 The Schedule (definition of Other Excisable Beverage) 7 Repeal the definition, substitute: 8 other excisable beverage means any beverage containing more 9 than 1.15% alcohol by volume, but does not include: 10 (a) beer; or 11 (b) brandy; or 12 (c) wine. 13 36 The Schedule (definition of Rum) 14 Repeal the definition. 15 37 The Schedule 16 Insert: 17 territorial sea has the same meaning as in the Seas and Submerged 18 Lands Act 1973. 19 38 The Schedule (definition of Whisky) 20 Repeal the definition. 21 39 The Schedule 22 Insert: 23 wine has the same meaning as in Subdivision 31-A of the A New 24 Tax System (Wine Equalisation Tax) Act 1999. 25 40 The Schedule (commencing note relating to tariff items 1 26 and 2) 27 Omit "Tariff items 1 and 2 of this Schedule", substitute "Items 1 to 3 of 28 this Schedule". 29 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 7 [Page Break] 41 The Schedule (paragraph (c) of the commencing note 1 relating to the volume of alcohol contained in goods) 2 Omit "section 77FB", substitute "section 65". 3 42 The Schedule (the rate of duty in subitem 11(A)) 4 Repeal the rate of duty, substitute: 5 $0.02854 per litre 43 The Schedule (the rate of duty in subparagraph 6 11(H)(1)(a)) 7 Repeal the rate of duty, substitute: 8 $0.02854 per litre 44 The Schedule (the rate of duty in subparagraph 9 11(H)(2)(a)) 10 Repeal the rate of duty, substitute: 11 $0.02854 per litre 45 The Schedule (table) 12 Repeal the table, substitute: 13 14 Excise duties Item Subitem Description of goods Rate of Duty 1 Beer 1.1 Beer not exceeding 3% by volume of $31.73 per litre of alcohol packaged in an individual alcohol calculated on container not exceeding 48 litres that alcohol content by which the percentage by volume of alcohol of the goods exceeds 1.15 1.2 Beer not exceeding 3% by volume of $6.33 per litre of alcohol packaged in an individual alcohol calculated on container exceeding 48 litres that alcohol content by which the percentage by volume of alcohol of the goods exceeds 1.15 8 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 1.5 Beer exceeding 3% but not exceeding $36.98 per litre of 3.5% by volume of alcohol packaged in alcohol calculated on an individual container not exceeding that alcohol content 48 litres by which the percentage by volume of alcohol of the goods exceeds 1.15 1.6 Beer exceeding 3% but not exceeding $19.89 per litre of 3.5% by volume of alcohol packaged in alcohol calculated on an individual container exceeding 48 that alcohol content litres by which the percentage by volume of alcohol of the goods exceeds 1.15 1.10 Beer exceeding 3.5% by volume of $36.98 per litre of alcohol packaged in an individual alcohol calculated on container not exceeding 48 litres that alcohol content by which the percentage by volume of alcohol of the goods exceeds 1.15 1.11 Beer exceeding 3.5% by volume of $26.03 per litre of alcohol packaged in an individual alcohol calculated on container exceeding 48 litres that alcohol content by which the percentage by volume of alcohol of the goods exceeds 1.15 1.15 Beer not exceeding 3% by volume of $2.22 per litre of alcohol produced for non-commercial alcohol calculated on purposes using commercial facilities or that alcohol content equipment by which the percentage by volume of alcohol of the goods exceeds 1.15 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 9 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 1.16 Beer exceeding 3% by volume of $2.58 per litre of alcohol produced for non-commercial alcohol calculated on purposes using commercial facilities or that alcohol content equipment by which the percentage by volume of alcohol of the goods exceeds 1.15 2 Other excisable beverages not $36.98 per litre of exceeding 10% by volume of alcohol alcohol 3 Spirits; Other excisable beverages exceeding 10% by volume of alcohol 3.1 Brandy $58.48 per litre of alcohol 3.2 Other excisable beverages exceeding $62.64 per litre of 10% by volume of alcohol alcohol 3.5 Spirit that: Free (a) a person has an approval, under section 77FD of the Excise Act 1901, to use for fortifying Australian wine or Australian grape must; and (b) is otherwise covered by the approval 3.6 Spirit that: Free (a) is for use by a person who is included in a class of persons determined under section 77FE of the Excise Act 1901; and (b) if a quantity is specified in a determination under that section in relation to the person--does not exceed that quantity; and (c) is for an industrial, manufacturing, scientific, medical, veterinary or educational purpose 10 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 3.7 Spirit that: Free (a) a person has an approval, under section 77FF of the Excise Act 1901, to use for an industrial, manufacturing, scientific, medical, veterinary or educational purpose; and (b) is otherwise covered by the approval 3.8 Spirit denatured according to a formula Free determined under section 77FG of the Excise Act 1901, other than spirit for use as fuel in an internal combustion engine 3.10 Spirits not elsewhere included $62.64 per litre of alcohol 5 Tobacco, cigars, cigarettes and snuff 5.1 In stick form not exceeding in weight $0.23259 per stick 0.8 grams per stick actual tobacco content 5.5 Other $290.74 per kilogram of tobacco content Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 11 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 10 Goods as follows: (a) petroleum condensate and stabilised crude petroleum oil for use otherwise than: (i) in the recovery, production, pipeline transportation or refining of petroleum condensate or stabilised crude petroleum oil; and (ii) as feedstock at a factory specified in a licence granted under Part IV of the Excise Act 1901; (b) topped crude petroleum oil; (c) refined or semi-refined liquid products derived from petroleum, other than such products for use (other than in an internal combustion engine) in refining petroleum condensate or stabilised crude petroleum oil; (d) liquid hydrocarbon products derived through a recycling, manufacturing or other process; (e) denatured ethanol for use as fuel in an internal combustion engine; (f) biodiesel; (g) blends of 1 or more of the above goods (with or without other substances), other than blends covered by subsection 77H(1) or (3) of the Excise Act 1901; but not including the following: (h) goods classified to item 15; (i) waxes, liquefied petroleum gas and bitumen 10.1 Petroleum condensate $0.38143 per litre 10.2 Stabilised crude petroleum oil $0.38143 per litre 10.3 Topped crude petroleum oil $0.38143 per litre 12 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 10.5 Gasoline (other than for use as fuel in $0.38143 per litre aircraft) 10.6 Gasoline for use as fuel in aircraft $0.02854 per litre 10.7 Blends of gasoline and ethanol The amount of duty worked out under section 6G 10.10 Diesel (other than biodiesel) $0.38143 per litre 10.11 Blends of diesel and ethanol The amount of duty worked out under section 6G 10.12 Blends of diesel and biodiesel The amount of duty worked out under section 6G 10.15 Heating oil $0.38143 per litre 10.16 Kerosene (other than for use as fuel in $0.38143 per litre aircraft) 10.17 Kerosene for use as fuel in aircraft $0.02854 per litre 10.18 Fuel oil $0.38143 per litre 10.20 Denatured ethanol for use as fuel in an $0.38143 per litre internal combustion engine 10.21 Biodiesel $0.38143 per litre 10.25 Liquid aromatic hydrocarbons $0.38143 per litre consisting principally of benzene, toluene or xylene or mixtures of them (other than goods covered by section 77J of the Excise Act 1901) 10.26 Mineral turpentine (other than goods $0.38143 per litre covered by section 77J of the Excise Act 1901) 10.27 White spirit (other than goods covered $0.38143 per litre by section 77J of the Excise Act 1901) 10.28 Petroleum products (other than blends) $0.38143 per litre not elsewhere included (other than goods covered by section 77J of the Excise Act 1901) Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 13 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 10.30 Blends of 1 or more of the above goods The amount of duty (with or without other substances) not worked out under elsewhere included that can be used as section 6G fuel in an internal combustion engine (other than goods covered by section 77J of the Excise Act 1901) 15 Goods as follows, other than: (a) goods for use as a fuel; and (b) exempt oils and hydraulic fluids 15.1 Petroleum-based oils (including $0.05449 per litre lubricant/fluid/oil products) and their synthetic equivalents but not greases 15.2 Petroleum-based oils (including $0.05449 per litre lubricant/fluid/oil products and greases) and their synthetic equivalents, recycled for use as oils (including lubricant/fluid/oil products) but not greases 15.3 Petroleum-based greases and their $0.05449 per synthetic equivalents kilogram 15.4 Petroleum-based oils (including $0.05449 per lubricant/fluid/oil products and greases) kilogram and their synthetic equivalents, recycled for use as greases 20 Stabilised crude petroleum oil, other than: (a) stabilised crude petroleum oil produced from a Resource Rent Tax area; and (b) exempt offshore oil 20.1 As prescribed by by-law Free 20.2 Delayed-entry oil The delayed-entry oil rate that applies to the oil 20.3 Pre-threshold onshore oil Free 14 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 [Page Break] Excise duties Item Subitem Description of goods Rate of Duty 20.5 New oil Free, or, if higher, the amount of duty worked out under section 6C 20.6 Intermediate oil Free, or, if higher, the amount of duty worked out under section 6D 20.7 Other Free, or, if higher, the amount of duty worked out under section 6B 21 Condensate produced in a State or Free Territory or inside the outer limits of the territorial sea of Australia other than condensate produced from a prescribed source 46 Transitional--previously paid duties 1 In working out the duty payable on blended goods under section 6G of 2 the Excise Tariff Act 1921 after the commencement of this item, 3 paragraph (a) of the definition of previously paid duties in that section 4 includes any excise duties already paid on goods that: 5 (a) are constituent elements of the blended goods; and 6 (b) were classified to item 11, 12 or 15 of the Schedule to that 7 Act (as in force before the commencement of this item). 8 47 Transitional regulations 9 The Governor-General may make regulations prescribing matters of a 10 transitional nature (including prescribing any saving or application 11 provisions) relating to the amendments made by this Act. 12 Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Bill 2006 No. , 2006 15