Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General Outline and Financial Impact
Excise Tariff Amendment (Condensate) Bill 2011
Excise Legislation Amendment (Condensate) Bill 2011
The Excise Tariff Amendment (Condensate) Bill 2011 amends the Excise Tariff Act 1921 , to clarify and confirm the area encompassed by the 'Rankin Trend' condensate production area, located within the North West Shelf project area.
The Excise Legislation Amendment (Condensate) Bill 2011 amends the Petroleum Excise (Prices) Act 1987 , to clarify that failure to provide petroleum producers with written notification setting out the terms of a Volume Weighted Average of Realised prices determination does not affect the making of the determination.
Together, these amendments ensure the Crude Oil Excise regime applies to condensate production from the North West Shelf project area as intended following the decision to remove the excise exemption applying to condensate from 13 May 2008.
Date of effect : These amendments apply from midnight (by legal time in the Australian Capital Territory) on 13 May 2008, consistent with the original measure.
These amendments are consistent with the Government's original announcement of this measure. They apply retrospectively to remove any uncertainty about the operation of the law since it came into effect.
Proposal announced : This measure was announced in the 2011-12 Budget on 10 May 2011.
Financial impact : Nil. The measure affirms the current application of the Crude Oil Excise regime to condensate production and has no revenue impact.
Compliance cost impact : Nil.
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