Commonwealth Consolidated Regulations

PETROLEUM EXCISE (PRICES) REGULATIONS 1988 - REG 5

         (1)   In this regulation:

"applicable whole cost" , in relation to a quantity of crude petroleum oil loaded on a ship under a contract of sale, other than an f.o.b. contract, by the oil producer of that oil means the total of the values applicable under paragraph 6 (1) (b) to any of the costs referred to in paragraph 6 (1) (a) incurred by the producer under the contract.

"applicable whole price" , in relation to a quantity of crude petroleum oil loaded on a ship, or delivered by pipeline, under a contract of sale, means:

                (a)    where the contract is a contract, other than an f.o.b. contract or any other contract under which the quantity of oil sold is the quantity of oil loaded on the ship, under which a quantity of oil is loaded on a ship (in this paragraph called the loaded quantity ) and the amount of the sale price under the contract is to be computed by reference to the quantity of oil delivered under the contract (in this paragraph called the delivered quantity ) and the loaded quantity exceeds the delivered quantity by more than 0.5% of the loaded quantity -- the value of the loaded quantity, expressed as an amount of Australian dollars to the nearest cent, calculated in accordance with the following formula:

                        where:

                        AWP is the applicable whole price;

                        LQ is the loaded quantity; and

                        P is the price per kilolitre of the oil under the contract; and

               (b)    in any other case -- the price indicated in the contract as the sale price, expressed as an amount of Australian dollars to the nearest cent.

"excisable quantity cost" , in relation to a quantity of crude petroleum oil loaded on a ship under a contract of sale, other than an f.o.b. contract, being oil all or part of which is entered for home consumption during a month, means the amount (expressed as an amount of Australian dollars to the nearest cent) that is the same proportion of the applicable whole cost for that oil as the proportion:

where:

"TEO" is the total quantity of excisable crude petroleum oil entered for home consumption during that month.

"TO" is the total quantity of excisable crude petroleum oil entered for home consumption during that month and of any other crude petroleum oil mixed with that oil at the time of that entry.

"excisable quantity price" , in relation to a quantity of crude petroleum oil loaded on a ship, or delivered by pipeline, under a contract of sale being oil all or part of which is entered for home consumption during a month, means the amount (expressed as an amount of Australian dollars to the nearest cent) that is the same proportion of the applicable whole price for that oil as the proportion:

where:

"TEO" is the total quantity of excisable crude petroleum oil entered for home consumption during that month.

"TO" is the total quantity of excisable crude petroleum oil entered for home consumption during that month and of any other crude petroleum oil mixed with that oil at the time of that entry.

"relevant delivery price" , in relation to a quantity of crude petroleum oil loaded on a ship, or delivered by pipeline, under a contract of sale:

                (a)    in the case of oil loaded on a ship under an f.o.b. contract or delivered by pipeline -- means the excisable quantity price for that oil; or

               (b)    in any other case -- means the excisable quantity price for that oil less the excisable quantity cost for that oil.

         (2)   For the purposes of paragraph 7 (5) (a) of the Act, the transaction price for a quantity of excisable crude petroleum oil, comprising all or part of a quantity of oil loaded on a ship, or delivered by pipeline, under a contract of sale under which:

                (a)    no more than 30 credit days are allowed -- is the relevant delivery price of that oil; or

               (b)    more than 30 credit days are allowed -- shall be calculated by deducting from the relevant delivery price of that oil a credit allowance determined in accordance with the formula specified in subregulation (3) or (4), as the case requires.

Note    For the purpose of calculating the transaction price under this subregulation, adjustments may have to be made to the sale price and the value of allowable costs (if any) -- see subr (5).

         (3)   Subject to subregulation (4), the formula for the purposes of paragraph (2) (b), is:

where:

"CA" is the credit allowance (expressed as an amount of Australian dollars to the nearest cent).

"CD" is the number of credit days allowed.

"IR" is the maximum indicator interest rate quoted by the Reserve Bank for the date of entry for home consumption of the oil or, if that rate is not quoted for that date, the maximum indicator interest rate for the last day, preceding that date, for which that rate is so quoted.

"N" is:

                (a)    where under the contract the effective credit day and the due date for payment are in the same year -- the number of days in that year; or

               (b)    where under the contract the effective credit day is in one year and the due date for payment is in the immediately succeeding year and the number of credit days allowed under the contract that occur in the first of those years is no more than 30 -- the number of days in the second of those years.

"RDP" is the relevant delivery price of the oil.

         (4)   Where:

                (a)    the effective credit day under the contract is in one year (in this subregulation called the first year ) and the due date for payment under the contract is in the immediately succeeding year (in this subregulation called the second year ); and

               (b)    the number of credit days allowed under the contract that occur in the first year is more than 30;

the formula for the purposes of paragraph (2) (b) is as follows:

where:

"CA , IR and RDP" have the meanings respectively attributed to them in subregulation (3).

CD ₁ is the number of credit days allowed that occur in the first year.

CD ₂ is the number of credit days allowed that occur in the second year.

N ₁ is the number of days in the first year.

N ₂ is the number of days in the second year.

         (5)   Despite anything in subregulation (1) or (2), in calculating the transaction price for a quantity of excisable crude petroleum oil:

                (a)    if the price per kilolitre of the oil, or the sale price, under the contract of sale includes an amount of GST payable on the supply to which that price relates, that price is to be reduced by the amount of GST; and

               (b)    if:

                          (i)    the value applicable under paragraph 6 (1) (b) to a cost mentioned in paragraph 6 (1) (a) is an amount mentioned in subparagraph 6 (1) (b) (ii); and

                         (ii)    the producer is entitled to an amount of input tax credit for the acquisition to which that value relates;

                        that value is to be reduced by the amount of input tax credit.

Note    No adjustment is made under this subregulation for a value agreed under subpara 6 (1) (b) (i) because adjustment has already been made in agreeing on that value -- see subr 6 (2).