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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The following Bills are cognate with this Bill:
Business Franchise Licences (Repeal) Bill 1997
Petroleum Products Subsidy Bill 1997
The appropriation is necessary because of the decision of the High Court of
Australia given on 5 August 1997 in Ngo Ngo Ha & Anor v State of New
South Wales & Ors and Walter Hammond and Associates Pty Limited v State
of New South Wales & Ors in which tobacco licence fees under the Business
Franchise Licences (Tobacco) Act 1987 were found to be invalid as imposing
a duty or duties of excise within the meaning of section 90 of the
Commonwealth Constitution. The decision also affects liquor licence fees and
petroleum licence fees.
The amount appropriated is comprised as follows:
$ million
Refunds of liquor licence fees to the liquor industry 130.0
Off-road diesel subsidies
97.5
Subsidies for low alcohol beer and wine
12.5
On-road petrol and diesel subsidies
37.5
Subsidies for vignerons' sales and wine tastings
4.5
282.0
Clause 2 provides for the proposed Act to commence on 1 July 1997, which
is the date of commencement of the Appropriation Act 1997.
Clause 3 is the appropriation provision. Clause 3 (1) appropriates the sum
specified above. Clause 3 (2) identifies the program for which the sum is
appropriated. Clause 3 (3) allows the Treasurer to amend the estimates (a
similar provision is contained in section 26 of the Public Finance and Audit
Act 1983).
Clause 4 contains miscellaneous provisions concerning the operation of the
proposed Act. Clause 4 (1) provides that the proposed Act is to be construed
as part of the Appropriation Act 1997 (this emphasises that the appropriation
is part of the budgetary process for the year 1997-98, and ensures that terms
are construed consistently). Clause 4 (2) is consequential on subclause ( l ) ,
and makes it clear that the appropriation is not limited to meeting a shortfall
from other appropriations. Clause 4 (3) validates any payment of the
appropriated sum before the date of assent to the proposed Act. Clause 4 (3)
also provides that the proposed subsection applies whether or not the
proposed Act is assented to during or after the year 1997-98 (this removes an
argument, based on section 23 of the Public Finance and Audit Act 1983, that
the appropriation lapses at the close of the year).
Explanatory note page 2