Commonwealth Consolidated Acts

EXCISE TARIFF ACT 1921 - SECT 3

             (1)  In this Act, unless the contrary intention appears:

"area" includes:

                     (a)  a part of the surface of the earth and the subsoil beneath that part; and

                     (b)  a part of the surface of the earth and a part of the subsoil beneath that part.

"biodiesel" means fuel manufactured by chemically altering vegetable oils or animal fats (including recycled oils from these sources) to form mono-alkyl esters.

"CEO" means the Commissioner of Taxation.

"delayed-entry oil" means stabilised crude petroleum oil or condensate (other than oil or condensate in respect of which subitem 20.1 or 21.1 of the Schedule applies) produced from a prescribed source, but not entered for home consumption, before the operative day for that source.

"delayed-entry oil rate" , in relation to delayed-entry oil, has the meaning given by section 6E.

"exempt offshore area" means a production area, within the meaning of section 5B:

                     (a)  that is outside the outer limits of the territorial sea of Australia; and

                     (b)  that is not, and has not been, a prescribed source.

"exempt offshore condensate" means condensate that is included in exempt offshore oil and condensate.

"exempt offshore field" means a field:

                     (a)  that is prescribed by By‑law; and

                     (b)  that consists of, or encompasses, an exempt offshore area or 2 or more exempt offshore areas.

"exempt offshore oil" means stabilised crude petroleum oil that is included in exempt offshore oil and condensate.

"exempt offshore oil and condensate" means the first 4767.3 megalitres of:

                     (a)  if a particular exempt offshore field produces stabilised crude petroleum oil and condensate--the stabilised crude petroleum oil and condensate that is produced from the field; or

                     (b)  if a particular exempt offshore field produces either stabilised crude petroleum oil or condensate (but not both)--the stabilised crude petroleum oil or condensate (as the case requires) that is produced from the field;

being a field from which neither petroleum oil nor condensate was produced before 1 July 1987.

"exempt oils and hydraulic fluids" means goods described in subsection (6).

"fuel oil" means a petroleum product, whether obtained through a process of blending or otherwise, that has the physical characteristics described in subsection (4).

"index number" , in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Statistician in respect of that quarter.

"installation" means a subsea installation, for the production of petroleum oil or condensate, that is connected to a fixed platform, a floating production system or any other petroleum collection system.

"intermediate area means an area declared by the Resources Minister, by notice in writing published in the Gazette" , to be an intermediate area for the purposes of this Act, being an area that contains at least one old accumulation but that does not contain a relevant accumulation which was developed before 23 October 1984.

"intermediate oil" means stabilized crude petroleum oil (other than new oil, delayed-entry oil or oil in respect of which subitem 20.1 of the Schedule applies) produced from an intermediate area.

"new oil" means stabilized crude petroleum oil (other than delayed-entry oil or oil in respect of which subitem 20.1 of the Schedule applies) produced from:

                     (a)  a relevant accumulation that was discovered on or after 18 September 1975 and before 1 July 1983 by drilling a well that was classified by the Minister, for the purposes of Excise By‑law No. 78, as:

                              (i)  a new field discovery; or

                             (ii)  a new pool (pay) discovery; or

                            (iii)  a deeper‑pool discovery; or

                            (iv)  a shallower‑pool discovery;

                            subsequent to a determination of the well type by the relevant Energy Minister after drilling and before 1 July 1983; or

                     (b)  a relevant accumulation that was discovered on or after 18 September 1975 and before 1 July 1983 by drilling a well that was not determined by the relevant Energy Minister before 1 July 1983 to be a well of any particular type; or

                     (c)  a relevant accumulation that was discovered on or after 1 July 1983.

"oil producing region" :

                     (a)  has the same meaning as in the Petroleum Excise (Prices) Act 1987 ; and

                     (b)  includes:

                              (i)  a production area within the meaning of section 5B, being an area from which condensate is obtained and that is prescribed by the regulations as an oil producing region; or

                             (ii)  2 or more production areas within the meaning of that section from which condensate is obtained, being areas that are together so prescribed.

Note:          Part IA of the Petroleum Excise (Prices) Act 1987 gives that Act operation in relation to condensate in addition to its operation in relation to stabilised crude petroleum oil. Paragraph (b) of this definition ensures that the definition covers production areas from which condensate is obtained.

"old accumulation" means a relevant accumulation that was discovered before 18 September 1975.

"onshore field" means a field:

                     (a)  that is prescribed by By‑law; and

                     (b)  that consists of, or encompasses, a production area (within the meaning of section 5B), or 2 or more production areas, that:

                              (i)  is in a State or Territory or inside the outer limits of the territorial sea of Australia; and

                             (ii)  is not, and has not been, a prescribed source.

"operative day" , in relation to a prescribed source, means the 1 July that is the day prescribed petroleum produced from that source on or after which is exempt from Excise duty because of the Petroleum Revenue Act 1985 .

"platform" means a platform for the production of petroleum oil or condensate.

"pre-operative year" , in relation to a prescribed source, means the financial year immediately preceding the operative day for that source.

"prescribed source" means:

                     (a)  a prescribed production area within the meaning of section 6B; or

                     (b)  a prescribed new production area within the meaning of section 6C; or

                    (ba)  a prescribed condensate production area within the meaning of section 6CA; or

                     (c)  a prescribed intermediate production area within the meaning of section 6D;

                   prescribed petroleum produced from which after 1 July in a particular year is exempt from Excise duty because of the Petroleum Revenue Act 1985 .

"pre-threshold onshore condensate" means condensate that is included in pre-threshold onshore oil and condensate.

"pre-threshold onshore oil" means stabilised crude petroleum oil that is included in pre-threshold onshore oil and condensate.

"pre-threshold onshore oil and condensate" means:

                     (a)  if a particular onshore field produces stabilised crude petroleum oil and condensate--stabilised crude petroleum oil and condensate produced from the field after 30 June 1987 that is included in the first 4767.3 megalitres of stabilised crude petroleum oil and condensate produced from the field; or

                     (b)  if a particular onshore field produces stabilised crude petroleum oil but not condensate--stabilised crude petroleum oil produced from the field after 30 June 1987 that is included in the first 4767.3 megalitres of stabilised crude petroleum oil produced from the field; or

                     (c)  if a particular onshore field produces condensate but not stabilised crude petroleum oil--condensate produced from the field after 30 June 1987 that is included in the first 4767.3 megalitres of condensate produced from the field.

"relevant accumulation" means a naturally occurring discrete accumulation of oil, of gas, or of both.

"relevant Energy Minister" means:

                     (a)  on and after 18 September 1975 and before 5 October 1976--the Minister for Minerals and Energy; and

                     (b)  on and after 5 October 1976 and before 20 December 1977--the Minister for National Resources; and

                     (c)  on and after 20 December 1977 and before 8 December 1979--the Minister for National Development; and

                     (d)  on and after 8 December 1979 and before 11 March 1983--the Minister for National Development and Energy; and

                     (e)  on and after 11 March 1983 and before 1 July 1983--the Minister for Resources and Energy.

"Resource Rent Tax area" means an area that, for the purposes of the Petroleum Resource Rent Tax Assessment Act 1987 , is:

                     (a)  the exploration permit area of an exploration permit other than one of the North West Shelf exploration permits; or

                     (b)  the retention lease area of a retention lease that is related to an exploration permit other than one of the North West Shelf exploration permits; or

                     (c)  the production licence area of a production licence that is related to an exploration permit other than one of the North West Shelf exploration permits.

"Statistician" means the Australian Statistician.

          (1A)  For the avoidance of doubt, it is declared to be the intention of the Parliament that if:

                     (a)  a particular area was, for the purposes of this Act as in force immediately before the date fixed by Proclamation for the commencement of this Act, an exempt onshore field; and

                     (b)  with effect from that date that area became an onshore field for the purposes of that Act as in force at that date;

then, in calculating the first 4767.3 megalitres of stabilised crude petroleum oil produced from that particular onshore field for the purposes of the definition of pre‑threshold onshore oil, all oil that was, before that date, exempt onshore oil produced from that exempt onshore field is to be taken into account.

             (2)  For the purposes of this Act, a relevant accumulation shall be taken to be developed when petroleum, within the meaning of section 5B, is recovered from the accumulation for the purpose of:

                     (a)  the sale of the petroleum; or

                     (b)  the production from the petroleum of a product for sale.

             (3)  Without affecting the meaning of any reference to a month in any other provision of this Act or in any other Act, a reference in section 6AB, 6B, 6C, 6CA, 6D or 6E to a month is a reference to one of the 12 months of a calendar year.

             (4)  The physical characteristics of fuel oil are:

                     (a)  a density equal to or greater than 920.0 kg/cubic metre at 15 degrees Celsius as determined by either ASTM D1298 or ASTM D4052; and

                     (b)  a carbon residue, on the whole sample, of at least 2.0 percent mass as determined by ASTM D189 (Conradson Carbon Residue) or by ASTM D4530 (Carbon Residue‑Micro Method); and

                     (c)  a minimum kinematic viscosity of 10 centistokes (millimetres squared per second) at 50 degrees Celsius as determined by ASTM D445.

             (5)  In subsection (4), a reference to ASTM followed by a number is a reference to a test so numbered as prescribed by the American Society for Testing and Materials and set out in Section 5 of the Annual Book of ASTM Standards (1986 revision) published in 1986 by the American Society for Testing and Materials at Philadelphia, Pennsylvania in the United States of America.

             (6)  Exempt oils and hydraulic fluids are:

                     (a)  food grade white mineral oil that complies with:

                              (i)  Sec. 21 CFR 172.878 of Title 21, Volume 1 of the United States Code of Federal Regulations (regulations made by the Food and Drug Administration of the United States); and

                             (ii)  Sec. 21 CFR 178.3620 (a) of Title 21, Volume 1 of the United States Code of Federal Regulations (regulations made by the Food and Drug Administration of the United States); and

                     (b)  polyglycol brake fluids that meet the requirements of Australian Standard AS/NZS 1960.1:1995 Motor vehicle brake fluids--Non‑petroleum type ; and

                     (c)  aromatic process oils that meet all of the criteria in the following table: