Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 2 - Amendment of the Excise Act 1901
Outline of Chapter
2.1 This Chapter explains technical amendments to the Excise Act 1901 that replace references to specific excise tariff items with generic descriptions.
Background to the legislation
2.2 In January 1998 the legislation commenced to deter and detect fuel substitution activities. The Government then foreshadowed a review of the arrangements relating to fuel substitution activities in the policy document entitled Tax Reform: not a new tax: a new tax system .
2.3 Special provisions in the Excise Act 1901 allow changes to the excise tariff to be made by gazetting a proposal or tabling a proposal in Parliament.
2.4 The Excise Act 1901 currently contains references to specific tariff items. These references restrict the Government's ability to quickly amend the tariff by gazettal or proposal to address fuel substitution activities.
Summary of new law
2.5 Specific tariff items are removed from the Excise Act 1901 and replaced with generic descriptions.
Explanation of amendments
2.6 Schedule 2 to this Bill removes specific references from several sections of the Excise Act 1901 and replaces them with generic descriptions.
2.7 These changes do not affect the way excise is levied or level of excise duty payable on petroleum products.
2.8 Schedule 2 to this Bill also introduces a new definition, 'maximum diesel rate'. This definition is a consequential amendment inserted to simplify the reading of the offences in section 120 of the Excise Act 1901 following the move to generic descriptions. It does not affect the way penalties under sections 120(4), 120(5), 120(6), 120(7) are calculated.