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Excise Tariff Amendment (Fuel Indexation) Bill 2014

Schedule 1 Amendments

Part 1 Indexation

Excise Tariff Act 1921

1  Section 6A (heading)

Repeal the heading, substitute:

6A   Indexation of CPI indexed rates

2  Subsection 6A(1)

Omit “each rate of duty set out in item 1, 2 or 3 of the Schedule (each alcohol duty rate ) is”, substitute “each CPI indexed rate is”.

3  Subsection 6A(1) (formula)

Repeal the formula, substitute:

4  Subsection 6A(1) (note)

Repeal the note, substitute:

Note:          For indexation factor see subsection (3). For CPI indexed rate and indexation day see subsection (10).

5  Subsection 6A(2)

Omit “the alcohol duty rate”, substitute “the CPI indexed rate”.

6  Subsections 6A(5), (6), (8) and (9)

Omit “an alcohol duty rate”, substitute “a CPI indexed rate”.

7  Subsection 6A(10)

Insert:

CPI indexed rate means:

                     (a)  a rate of duty set out in item 1, 2 or 3 of the Schedule; or

                     (b)  a rate of duty set out in item 10 of the Schedule, other than in:

                              (i)  subitem 10.6 or 10.17; or

                             (ii)  subitem 10.7, 10.11, 10.12 or 10.30; or

                     (c)  the rate set out in step 3 of the method statement in subsection 6G(1) (about duty payable on blended goods).

8  After section 6A

Insert:

6AAA   Rounding of fuel duty rates

             (1)  Despite subsection 6A(2), the amount to be worked out under subsection 6A(1) in respect of an indexation day for a CPI indexed rate covered by subsection (3) of this section is to be rounded to 3 decimal places (rounding up if the next decimal place is 5 or more).

             (2)  For the purposes of section 6A, determine the CPI indexed rate on the day before the indexation day as mentioned in subsection 6A(1) on the assumption that the operation of subsection (1) of this section was disregarded in respect of all previous indexation days (if any).

             (3)  This subsection covers the following CPI indexed rates:

                     (a)  a rate of duty set out in item 10 of the Schedule, other than in:

                              (i)  subitem 10.6 or 10.17; or

                             (ii)  subitem 10.7, 10.11, 10.12 or 10.30; or

                     (b)  the rate set out in step 3 of the method statement in subsection 6G(1) (about duty payable on blended goods).

             (4)  In this section:

CPI indexed rate has the same meaning as in section 6A.

indexation day has the same meaning as in section 6A.

9  Subsection 6G(1) (method statement, step 1)

After “blended goods” (first occurring), insert “at the time the duty on the blended goods is payable”.

10  Subsection 6G(1) (method statement, at the end of step 3)

Add:

Note:          The rate appearing on the face of step 3 is indexed under section 6A.

11  Application

(1)       The amendments made by this Part apply to goods manufactured or produced in Australia on or after the day this Part commences and goods for which all the following conditions are met:

                     (a)  the goods were manufactured or produced in Australia before that day;

                     (b)  on that day, the goods either:

                              (i)  were subject to the CEO’s control; or

                             (ii)  were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods; and

                     (c)  no duty of excise had been paid on the goods before that day.

(2)       This item has effect despite subsection 5(2) of the Excise Tariff Act 1921 .

Part 2 Consequential amendments to enacted changes to alternative fuels

Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011

12  Part 5 of Schedule 1

Repeal the Part, substitute:

Part 5—Amendments to commence on 1 July 2015

11  After section 6E

Insert:

6FAA   Change in duty rate of certain liquefied petroleum gases, liquefied natural gases and compressed natural gases

             (1)  This Act has effect as if, on 1 July 2015:

                     (a)  the rate of duty in subitem 10.19A of the Schedule is replaced by:

                              (i)  $0.125 per litre; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.125 per litre—that indexed rate; and

                     (b)  the rate of duty in subitem 10.19B of the Schedule is replaced by:

                              (i)  $0.2613 per kilogram; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.2613 per kilogram—that indexed rate; and

                     (c)  the rate of duty in subitem 10.19C of the Schedule is replaced by:

                              (i)  $0.2613 per kilogram; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.2613 per kilogram—that indexed rate.

             (2)  To work out the indexed rate:

                     (a)  first, index the rate mentioned in paragraph (1)(a), (1)(b) or (1)(c) (as applicable) on 1 August 2014 under section 6A, on the assumptions that:

                              (i)  the rate is a CPI indexed rate for the purposes of that section; and

                             (ii)  the amount of that rate on the day before 1 August 2014 is the amount set out in subparagraph (1)(a)(i), (1)(b)(i) or (1)(c)(i) (as applicable); and

                     (b)  next, index the rate mentioned in paragraph (1)(a), (1)(b) or (1)(c) (as applicable) on 1 February 2015 under section 6A, on the assumptions that:

                              (i)  the rate is a CPI indexed rate for the purposes of that section; and

                             (ii)  the amount of that rate on the day before 1 February 2015 is the amount of the rate worked out under paragraph (a) of this subsection.