Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 3 - Petroleum products (ANTS measure)
Excise tariff amendment bill (No. 1) 2001
Outline of chapter
3.1 This chapter explains amendments to the Excise Tariff Act which reduce the excise for certain fuels and potential substitutes (petrol, diesel and other petroleum products attracting excise at the unleaded/diesel or leaded petrol rate) to offset the introduction of the GST.
3.2 Schedule 1, items 6 and 7 substitute new rates of excise for the affected subitems of the Schedule to the Excise Tariff Act.
Context of reform
3.3 The policy document, ANTS, outlined the Governments commitment to ensure that the pump price of petrol and diesel need not rise with the introduction of the GST. Changes to the Excise Tariff Act give effect to this policy.
Summary of new law
3.4 Rates of excise for subitems of the Schedule to the Excise Tariff Act that are for certain fuel use, including potential substitutes, are repealed and substituted with new rates reflecting a reduction of 6.656 cents per litre. This amendment coincides with the introduction of the GST.
| New law | Current law |
|---|---|
| Rates of excise for certain fuels and potential substitutes are reduced by 6.656 cents per litre to offset the introduction of the GST. | Rates of excise applicable to certain fuels and potential substitutes are 6.656 cents per litre higher. |
Detailed explanation of new law
3.5 The Schedule to the Excise Tariff Act is amended by repealing all rates of excise duty for subitems of item 11 that are for certain fuel use, including potential substitutes, and substituting those rates with new rates reflecting a reduction of 6.656 cents per litre. The substituted rates are taken to have effect on and from 1 July 2000.
Customs Tariff Amendment Bill (No. 2) 2001
Outline of chapter
3.6 This chapter explains amendments to the Customs Tariff Act that reduce the rates of customs duty for certain fuels and potential substitutes (petrol, diesel and other petroleum products attracting customs duty at the unleaded/diesel or leaded petrol rate) to offset the introduction of the GST.
3.7 Schedule 1, Part 2, items 14 to 16 substitute new rates of customs duty for the affected subheadings of Schedule 3 to the Customs Tariff Act.
Context of reform
3.8 The policy document, ANTS, outlined the Governments commitment to ensure that the pump price of petrol and diesel need not rise with the introduction of the GST. Changes to the Customs Tariff Act give effect to this policy.
Summary of new law
3.9 The rates of customs duty in column 3 for those Customs Tariff subheadings of Schedule 3 to the Customs Tariff Act that are for certain fuel use, including potential substitutes, are repealed and substituted with new rates reflecting a reduction of 6.656 cents per litre. This amendment coincides with the introduction of the GST.
| New law | Current law |
|---|---|
| Rates of customs duty for certain fuels and potential substitutes, including toluene and certain other chemicals which may be substituted as fuel in internal combustion engines, are reduced by 6.656 cents per litre to offset the introduction of the GST. | Rates of customs duty applicable to certain fuels and potential substitutes are 6.656 cents per litre higher. |
Detailed explanation of new law
3.10 The rates of customs duty in column 3 for Customs Tariff subheadings of Schedule 3 to the Customs Tariff Act that are for certain fuel use, including potential substitutes, are repealed and substituted with new rates reflecting a reduction of 6.656 cents per litre. The substituted rates are taken to have effect on and from 1 July 2000.