Excise Laws Amendment (Fuel Tax Reform and Other Measures) Act 2006 (74 of 2006)

Schedule 1   Amendments

Part 1   Amendments

Excise Act 1901

75   Sections 77G to 77J

Repeal the sections, substitute:

77G Fuel blending is to be treated as manufacture

(1) For greater certainty so far as concerns the application of the provisions of this Act, fuel blending to produce goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 is taken to constitute the manufacture of those goods.

(2) Subsection (1) does not imply that, in the absence of such a provision, the blending of substances (whether fuel products or not) would not constitute the manufacture of the substance produced by the blending.

(3) In this section:

fuel product means:

(a) any excisable goods classified to item 10, 15, 20 or 21 of the Schedule to the Excise Tariff Act 1921; or

(b) any imported goods that would be classified to item 10 or 15 of that Schedule if they were manufactured in Australia.

77H Blending exemptions

(1) Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if:

(a) excise duty or a duty of Customs has been paid at the same rate on all the eligible goods and the other substances (if any); or

(b) the goods are covered by a determination in force under subsection 95-5(1) of the Fuel Tax Act 2006.

(2) However, subsection (1) does not apply if any of the eligible goods or other substances on which excise duty or a duty of Customs has been paid are:

(a) denatured ethanol for use as fuel in an internal combustion engine; or

(b) biodiesel; or

(c) taxable fuel for which any entity has been entitled to a fuel tax credit under the Fuel Tax Act 2006.

Legislative instrument

(3) Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if the circumstances specified in an instrument under subsection (4) exist.

(4) The CEO may, by legislative instrument, specify circumstances for the purposes of subsection (3).

Definition

(5) In this section:

eligible goods means goods covered by paragraph 10(a), (b), (c), (d), (e) or (f) of the Schedule to the Excise Tariff Act 1921.

77J Goods that are not covered by subitem 10.25, 10.26, 10.27, 10.28 or 10.30

If:

(a) goods (the delivered goods ) classified to subitem 10.25, 10.26, 10.27, 10.28 or 10.30 of the Schedule to the Excise Tariff Act 1921 are delivered for home consumption; and

(b) a person uses the delivered goods as a solvent; and

(c) the person manufactures or produces other goods by carrying out a recycling process on the delivered goods; and

(d) the other goods are for use as a solvent by the person; and

(e) apart from this section, the other goods would be classified to the subitem of that Schedule that applied to the delivered goods;

then that subitem does not apply to the other goods.