Download PDFHouse: House of Representatives
Portfolio: Industry, Technology and Regional Development
Commencement: 1 January 1994
Purpose
This is a Bill which imposes taxation. The purpose of the Bill is to impose the tax as a 1% administration charge via the diesel fuel rebate scheme. The tax is to be 1% of the value of the rebate payable to claimants (ie. basically, persons other than ordinary road users) who are eligible to receive a rebate of all or part of the customs duty they have already paid on diesel fuel.
(This Bill is identical in form to the companion Bill, the Diesel Fuel (Excise Duty Rebate) Administration Charge Bill 1993. Customs duties are applied to imports. Excise duties are applied to domestic production. Two separate pieces of legislation are required because of section 55 of the Constitution. The relevant part of section 55 of the Constitution states ' ...but laws imposing duties of customs shall deal with duties of customs only, and laws imposing duties of excise shall deal with duties of excise only.' For convenience, the single term 'customs duty' will be used in this paper, in lieu of 'customs and excise'.)
Background
The background to the diesel fuel rebate scheme is set out in the companion Bills Digest prepared for the Diesel Fuel (Excise Duty Rebate) Administration Charge Bill 1993.
The rate of rebate set in August 1993 was:
.26.573 cents per litre for primary production;
.24.185 cents per litre for mining operations; and
.20.232 cents per litre for other eligible claimants. 1
The Government estimates that $1,000M is anticipated to be rebated under the diesel fuel rebate scheme in 1993- 94 and the cost of administering this scheme is estimated at $11M. The 1% administration fee will almost cover the cost of administration on a full year basis. 2
Main Provisions
Commencement Date: Commencement of the administration charge is 1 January 1994 (clause 2).
Definitions: The Bill does not define an 'administration charge' or 'rebate' in detail. The definition provided only relates 'rebate' to the Customs Act 1901 (clause 3).
Imposition of the tax: An administration charge for processing rebate applications will be imposed by clause 6.
The rate of the tax: The rate of the administration charge is set at 1% of the amount of rebate payable to the claimant (clause 7).
This is not a flat rate administration charge. The charge is tied to the amount of the rebate and relates to the volume of diesel fuel used. A large user of diesel fuel will pay more in administration charges than a small user. This administration charge may appear disproportionate in its effect if, for example, both the large user and the small user each lodge a single annual return. If a larger user lodges returns more frequently then the charge is spread more evenly during the year and is applied for the processing of those several claims.
Endnotes
1. Notice No. 2 (1993) issued by the Delegate of the Minister for Science and Small Business pursuant to the Customs Act 1901 on 29 July 1993, Gazette GN 30 of 4 August 1993: 2239.
2. Hon G. Punch MP, Parliamentary Secretary to the Minister for Defence, Second Reading Speech, Diesel Fuel (Excise Duty Rebate) Administration Charge Bill 1993: House of Representatives Hansard, 28 September 1993: 1235.
B. Bailey (06 2772434)
Bills Digest Service 1 October 1993
Parliamentary Research Service
This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
Commonwealth of Australia 1993.
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Published by the Department of the Parliamentary Library, 1993.