EXCISE TARIFF ACT 1921

SECTION 6CA   DUTIES OF EXCISE ON CONDENSATE  

Definitions

6CA(1)    

In this section:

adjusted previous year's duty
, in relation to a prescribed condensate production area in relation to a month of a financial year, means the amount of duty that, at the end of the financial year immediately preceding the financial year in which that month occurs, would have been payable in respect of condensate 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 that first-mentioned month, the respective applicable petroleum prices for all of those months.

non-adjusted previous year's duty
, in relation to a prescribed condensate production area in relation to a month of a financial year, means the amount of duty that, at the end of the financial year immediately preceding the financial year in which that month occurs, would have been payable in respect of condensate 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 that first-mentioned month, the respective applicable petroleum prices for all of those months.

prescribed condensate production area
has the meaning given by subsection (1A).

6CA(1A)    

Prescribed condensate production area means any of the following:

(a) a condensate production area prescribed by by-laws (which, without limiting the generality of the foregoing, may be a relevant accumulation, a well, an oilfield or a gas field);

(b) the Rankin Trend (see subsection (1B)).

Note:

A by-law may be expressed to commence before the day it is registered under the Legislation Act 2003 (see subsection 12(1A) of that Act).

6CA(1B)    

The Rankin Trend means the area that includes the following:

(a) the reservoirs, or groups of reservoirs, known as:

(i) North Rankin; and

(ii) Perseus; and

(iii) Searipple; and

(iv) Goodwyn; and

(v) Keast/Dockrell; and

(vi) Echo/Yodel;

(b) other reservoirs, or groups of reservoirs, (if any) that are specified in the regulations made for the purposes of this paragraph.

6CA(1C)    

Before the Governor-General makes a regulation specifying a reservoir, or a group of reservoirs, for the purposes of paragraph (1B)(b):

(a) the Resources Minister must be satisfied that the reservoir, or the group of reservoirs, is part of the same field as a reservoir or group of reservoirs mentioned in paragraph (1B)(a); and

(b) if the Resources Minister is so satisfied - the Resources Minister must consider the effect of specifying the reservoir, or the group of reservoirs, on the efficient exploitation of the resource related to the reservoir, or to the group of reservoirs.

6CA(1D)    

Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations specifying a reservoir, or a group of reservoirs, for the purposes of paragraph (1B)(b) of this section.

6CA(1E)    

Subsection (1D) does not apply to regulations that create, modify or otherwise affect a provision that makes a person liable to an offence or civil penalty.

Introduction

6CA(2)    
The amount of duty in respect of condensate ascertained in accordance with this section is to be ascertained by reference to the prescribed condensate production area from which the condensate is produced and to the month of a financial year during which the condensate is entered for home consumption.

The amount of duty

6CA(3)    
Subject to subsection (4), the amount of duty in respect of condensate produced from a prescribed condensate production area and entered for home consumption during a month of a financial year is the amount worked out using the formula:

Notional duty

+

Debited adjustment amount

−

[ Duty paid   +   Credited adjustment amount]

where:

credited adjusted amount
is the credited adjustment amount (if any) for that area and that month, worked out in accordance with subsection (8).

debited adjustment amount
is the debited adjustment amount (if any) for that area and that month, worked out in accordance with subsection (7).

duty paid
is the amount of duty (if any) paid in respect of condensate produced from that area and entered for home consumption during the period starting at the start of that financial year and ending at the end of that month.

notional duty
is the amount of notional duty in respect of condensate produced from that area and entered for home consumption during the period starting at the start of that financial year and ending at the end of that month, worked out in accordance with subsection (5).

Disregarding certain amounts when working out amount of duty

6CA(4)    
In working out, for the purposes of subsection (3), the amount of duty paid in respect of condensate produced from a prescribed condensate production area and entered for home consumption during a period starting at the start of a financial year and ending at the end of a month of that year, the following amounts are to be disregarded:

(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 months of that year;

(b) any decreases in that amount as a result of the subtraction of credited adjustment amounts for that area for any of those months.

The total amount of notional duty

6CA(5)    
The amount of notional duty in respect of condensate produced from a particular prescribed condensate production area and entered for home consumption during a particular period is the sum of the amounts of notional duty in respect of:

(a) the quantity (if any) of the condensate that exceeds A × 10 B but does not exceed A × 12 B ;

(b) the quantity (if any) of the condensate that exceeds A × 12 B but does not exceed A × 14 B ;

(c) the quantity (if any) of the condensate that exceeds A × 14 B but does not exceed A × 16 B ;

(d) the quantity (if any) of the condensate that exceeds A × 16 B ;

where:

A
is the number of days in the period.

B
is:

(a) where the period in a year in which there are 365 days - 136.98630 kilolitres; or

(b) where the period is in a year in which there are 366 days - 136.61202 kilolitres.

The amount of notional duty for a quantity of condensate - one petroleum price

6CA(6)    
Subject to subsections (9) and (12), the amount of notional duty in respect of a quantity of condensate referred to in subsection (5) is an amount equal to the relevant percentage (set out in subsection (10)) of the product of:

(a) the amount specified in the price that is, at the end of the period referred to in subsection (5) in relation to the quantity of condensate, the applicable petroleum price for the month in which the period comes to an end; and

(b) the number of kilolitres in that quantity;

calculated to the nearest cent.

The debited adjustment amount

6CA(7)    
If:

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

(b) the adjusted previous year's duty for that prescribed condensate production area for that first-mentioned month is greater than the non-adjusted previous year's duty for that area for that first-mentioned month;

there is a debited adjustment amount for that area for that first-mentioned month, being an amount equal to the difference between that adjusted previous year's duty and that non-adjusted previous year's duty.

The credited adjustment amount

6CA(8)    
If:

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

(b) the adjusted previous year's duty for that prescribed condensate production area for that first-mentioned month is less than the non-adjusted previous year's duty for that area for that first-mentioned month;

there is a credited adjustment amount for that area for that first-mentioned month, being an amount equal to the difference between that non-adjusted previous year's duty and that adjusted previous year's duty.

The amount of notional duty for a quantity of condensate - more than one petroleum price

6CA(9)    
If, at the end of a period in a financial year, the applicable petroleum prices for the months in which the period occurs and a particular prescribed condensate production area are not all the same, the amount of the notional duty in respect of a quantity of condensate referred to in subsection (5) produced from that production area and entered for home consumption during the period is an amount equal to the relevant percentage (set out in subsection (10)) 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   ×   Q   ×   K     KT

where:

K
is the number of kilolitres of condensate 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 condensate produced from that production area and entered for home consumption during the period.

P
is the amount specified in the applicable petroleum price.

Q
is the number of kilolitres in the quantity of condensate referred to in subsection (5).

Relevant percentage for a quantity of condensate

6CA(10)    
For the purposes of subsections (6) and (9), the relevant percentage in relation to a quantity of condensate referred to in subsection (5) is:

(a) in the case of a quantity to which paragraph (5)(a) applies - 10%; and

(b) in the case of a quantity to which paragraph (5)(b) applies - 15%; and

(c) in the case of a quantity to which paragraph (5)(c) applies - 20%; and

(d) in the case of a quantity to which paragraph (5)(d) applies - 30%.

Rounding the number of kilolitres in a quantity of condensate

6CA(11)    
For the purposes of subsections (6) and (9), the number of kilolitres in a quantity of condensate is taken to be a number equal to:

(a) unless paragraph (b) applies - the number of kilolitres in that quantity calculated to one decimal place; or

(b) if the number of kilolitres in that quantity calculated to 2 decimal places ends in a number greater than 4 - the number of kilolitres in that quantity calculated to one decimal place increased by 0.1.

The amount of notional duty - dealing with the first year of production

6CA(12)    
When no condensate produced from a particular prescribed condensate production area was ever entered for home consumption before the end of the first month of a particular financial year, then, in ascertaining, in accordance with subsections (5), (6) and (10) or (5), (9) and (10), the notional duty in respect of condensate produced from the production area and entered for home consumption during a later month (the relevant month ) of that financial year, those subsections have effect in relation to the condensate as if each reference in a paragraph of subsection (5) to B were a reference to the product of B and the factor ascertained in accordance with the formula:

M N

where:

M
is the number of days in the period commencing on the day on which condensate produced from the prescribed condensate production area was first entered for home consumption and ending on the end of the relevant month.

N
is the number of days in the period commencing on the first day of the financial year and ending on the end of the relevant month.

6CA(13)    

Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a by-law prescribing a condensate production area.

6CA(13A)    
Despite section 169 of the Excise Act 1901 , a by-law prescribing a condensate production area may have the effect of imposing duty, in relation to condensate entered for home consumption before the date on which the by-law is published in the Gazette , at a rate higher than the rate of duty payable in respect of the condensate on the day on which the condensate was entered for home consumption.

Interpretation of the Schedule

6CA(14)    
The words set out after " , if higher, " in the column headed " Rate of Duty " in subitem 21.3 of the Schedule are taken, for the purposes of this Act or any other law of the Commonwealth, to be a rate of duty.