Commonwealth Numbered Acts

EXCISE TARIFF AMENDMENT ACT (No. 2) 1987 No. 150 of 1987 - SECT 9

9. Section 6C of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "Import Parity Price";

   (b)  by inserting in subsection (1) the following definitions:

" 'adjusted previous year's duty', in relation to a prescribed new production
area in relation to a prescribed division of a financial year, means the
amount of duty that, at the end of the financial year immediately preceding
the financial year in which the division occurs, would have been payable in
respect of new oil produced from that area and entered for home consumption
during that preceding year if, for the prices that were, at the end of that
preceding year, the applicable petroleum prices for all of the months of that
preceding year, there had been substituted the prices that are, at the end of
the division, the respective applicable petroleum prices for all of those
months;
'credited adjustment amount', in relation to a prescribed new production area
in relation to a prescribed division of a financial year, means the amount (if
any) that is the credited adjustment amount for that area for that division
because of subsection (5B);
'debited adjustment amount', in relation to a prescribed new production area
in relation to a prescribed division of a financial year, means the amount (if
any) that is the debited adjustment amount for that area for that division
because of subsection (5A);
'non-adjusted previous year's duty', in relation to a prescribed new
production area in relation to a prescribed division of a financial year,
means the amount of duty that, at the end of the financial year immediately
preceding the financial year in which the division occurs, would have been
payable in respect of new oil produced from that area and entered for home
consumption during that preceding year if, for the prices that were, at the
end of that preceding year, the applicable petroleum prices for all of the
months of that preceding year, there had been substituted the prices that
were, immediately before the commencement of the division, the respective
applicable petroleum prices for all of those months;";

   (c)  by inserting in subsection (3) "(being a division ending before 1
January 1988)" after "financial year" (first occurring);

   (d)  by inserting after subsection (3) the following subsections:

"(3A) Subject to subsection (3B), the amount of duty in respect of new oil
produced from a particular prescribed new production area and entered for home
consumption during a particular prescribed division of a financial year (being
a division commencing on or after 1 January 1988) is the amount ascertained in
accordance with the formula:
ND + DAA - (DP + CAA)
where:
ND is the amount of notional duty in respect of new oil produced from that
area and entered for home consumption during the period commencing on the
commencement of that year and ending on the expiration of that division;
DAA is the debited adjustment amount (if any) for that area for that division;
DP is the amount of duty (if any) paid in respect of new oil produced from
that area and entered for home consumption during that period;
CAA is the credited adjustment amount (if any) for that area for that
division.

"(3B) In ascertaining, for the purposes of subsection (3A), the amount of duty
paid in respect of new oil produced from a prescribed new production area and
entered for home consumption during a period commencing on the commencement of
a financial year and ending on the expiration of a prescribed division of that
year:

   (a)  any increases in the amount of duty paid as a result of the addition
        of debited adjustment amounts for that area for any of the preceding
        prescribed divisions of that year; and

   (b)  any decreases in that amount as a result of the subtraction of
        credited adjustment amounts for that area for any of those divisions;
shall be disregarded.";

   (e)  by omitting from paragraph (5) (a) "Import Parity Price" and
        substituting "price that is, at the end of the period referred to in
        subsection (4) in relation to the quantity of oil, the applicable
        petroleum price for the month in which the period comes to an end";

   (f)  by inserting after subsection (5) the following subsections:

"(5A) Where:

   (a)  during a prescribed division of a financial year, a VOLWARE price for
        a month of the immediately preceding financial year is determined
        under section 7 of the Petroleum Excise (Prices) Act 1987; and

   (b)  the adjusted previous year's duty for a prescribed new production area
        for that division is greater than the non-adjusted previous year's
        duty for that area for that division;
there is a debited adjustment amount for that area for that division, being an
amount equal to the difference between that adjusted previous year's duty and
that non-adjusted previous year's duty.

"(5B) Where:

   (a)  during a prescribed division of a financial year, a VOLWARE price for
        a month of the immediately preceding financial year is determined
        under section 7 of the Petroleum Excise (Prices) Act 1987; and

   (b)  the adjusted previous year's duty for a prescribed new production area
        for that division is less than the non-adjusted previous year's duty
        for that area for that division;
there is a credited adjustment amount for that area for that division, being
an amount equal to the difference between that non-adjusted previous year's
duty and that adjusted previous year's duty.";

   (g)  by omitting subsection (6) and substituting the following subsection:

"(6) Where, at the end of a period in a financial year, the applicable
petroleum prices for the months in which the period occurs are not all the
same, the amount of the notional duty in respect of a quantity of oil referred
to in subsection (4) produced from a particular prescribed new production area
and entered for home consumption during the period is an amount equal to the
relevant percentage of the sum of the amounts calculated in respect of each
such applicable petroleum price in operation during the period in accordance
with the formula:
P x Q x K
------------
KT
where:
P is the amount specified in the applicable petroleum price;
Q is the number of kilolitres in the quantity of oil referred to in subsection
(4);
K is the number of kilolitres of new oil produced from that production area
and entered for home consumption during that part of the period during which
the applicable petroleum price was in operation;
KT is the number of kilolitres of new oil produced from that production area
and entered for home consumption during the period.".