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Customs Tariff Amendment (Fuel Indexation) Bill 2014

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2013-2014

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

Excise Tariff Amendment (Fuel Indexation) Bill 2014

Customs Tariff Amendment (Fuel Indexation) Bill 2014

fuel indexation (road funding) Special Account bill 2014

Fuel Indexation (Road Funding) Bill 2014

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

(Circulated by the authority of the Treasurer, the Hon J.  B.  Hockey MP and the Minister for Immigration and Border Protection, the Hon Scott Morrison MP)

 



Table of contents

Glossary.............................................................................................................. 1

General outline and financial impact............................................................ 3

Chapter 1               CPI indexation of fuel excise and excise-equivalent customs duty          5

Chapter 2               Regulation impact statement:  CPI indexation of fuel excise and excise-equivalent customs duty..................................... 21

Index................................................................................................................. 31

 



The following abbreviations and acronyms are used throughout this explanatory memorandum.

Abbreviation

Definition

ACCC

Australian Competition and Consumer Commission

ATO

Australian Taxation Office

AWOTE

Average Weekly Ordinary Time Earnings

BAS

Business Activity Statement

COAG

Council of Australian Governments

CPI

Consumer Price Index

CTA 1995

Customs Tariff Act 1995

CTAFI 2014

Customs Tariff Amendment (Fuel Indexation) Bill 2014

CTLAA 2011

Customs Tariff Amendment (Taxation of Alternative Fuels) Act 2011

ETA 1921

Excise Tariff Act 1921

ETAFI 2014

Excise Tariff Amendment (Fuel Indexation) Bill 2014

ETLAA 2011

Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011

FIRF 2014

Fuel Indexation (Road Funding) Bill 2014

FISA 2014

Fuel Indexation (Road Funding) Special Account Bill 2014

FMAA 1997

Financial Management and Accountability Act 1997

FOFA

Future of Financial Advice

PGPA 2013 

Public Governance, Performance and Accountability Act 2013

RBCO

Regulatory Burden and Cost Offset

SES

Senior Executive Service



CPI indexation of fuel excise and excise-equivalent customs duty

The Excise Tariff Amendment (Fuel Indexation) Bill 2014 and the Customs Tariff Amendment (Fuel Indexation) Bill 2014 amend the Excise Tariff Act 1921 and the Customs Tariff Act 1995 to index the rate of excise and excise-equivalent customs duty applying to fuels to assist in funding road infrastructure. 

The Fuel Indexation (Road Funding) Special Account Bill 2014 establishes a special account to ensure that the net additional revenue from the reintroduction of fuel indexation is used for road infrastructure funding.

The Fuel Indexation (Road Funding) Bill 2014 amends the Fuel Tax Act 2006 to ensure that taxpayers generally use the same indexed rate of duty that was payable on the fuel for determining the amount of their fuel tax credits. 

Date of effect The amendments apply indexation to duty on domestically manufactured and imported fuel with effect from 1 August 2014. 

The provisions which establish a special account for the net additional revenue from the reintroduction of fuel indexation apply from 1 July 2015.

Proposal announced :  This measure was announced by the Treasurer in the Budget on 13 May 2014.  Rounding duty rates and the road user charge to one decimal place of a cent has not previously been announced.

Financial impact The measure is estimated to result in a gain to revenue over the forward estimates period of $2,197.5 million comprising:

2014-15

2015-16

2016-17

2017-18

$157.5m

$375m

$675m

$990m

Note: financial impacts are in fiscal balance terms.

Human rights implications :  These Bills do not raise any human rights issues.  See Statement of Compatibility with Human Rights — Chapter 1, paragraphs 1.69 to 1.74.

Compliance cost impact The measure imposes a moderate increase in compliance costs for fuel manufacturers and importers, as well as fuel tax credit claimants.

Summary of regulation impact statement

Regulation impact on business

Impact :  Moderate.

Main points :

•        Some of the fuel manufacturers and importers in the Australian market are likely to require an update to their systems in order to accommodate the biannual indexation of fuel duty rates. 

•        There will also be ongoing costs associated with the twice-yearly change in the fuel duty rate for all remitters of fuel excise and excise-equivalent customs duty.

•        The majority of the change in the compliance costs for businesses with entitlements to fuel tax credits is borne by entities who submit their Business Activity Statements on a quarterly or annual basis.  These entities will be required to organise purchases of fuels between purchases before and after the indexation date, in order to properly account for their fuel tax credit entitlement. 

 



Outline of chapter

1.0                   The Excise Tariff Amendment (Fuel Indexation) Bill 2014 (ETAFI 2014) and the Customs Tariff Amendment (Fuel Indexation) Bill 2014 (CTAFI 2014) amend the Excise Tariff Act 1921 (ETA 1921) and the Customs Tariff Act 1995 (CTA 1995) to index the rate of excise and excise-equivalent customs duty applying to fuels to assist in funding investment in road infrastructure. 

1.1                   The Fuel Indexation (Road Funding) Special Account Bill 2014 (FISA 2014) establishes a special account to ensure that the net additional revenue from the reintroduction of fuel indexation is used for road infrastructure funding.

1.2                   The Fuel Indexation (Road Funding) Bill 2014 (FIRF 2014) amends the Fuel Tax Act 2006 to ensure that taxpayers generally use the same indexed rate of duty that was payable on the fuel for determining the amount of their fuel tax credits. 

Context of amendments

1.3                   Excise and excise-equivalent customs duty are levied on fuel at the rates set out in the ETA 1921 and the CTA 1995.  The rates of excise and excise-equivalent customs duty applying to fuel have not been indexed since 2001.  As a result, the real value of excise and excise-equivalent customs duty collections has decreased each year. 

1.4                   Grants are available for entities that manufacture, and in some cases import, biodiesel, renewable diesel and ethanol.  The rate of the grants for biodiesel and renewable diesel is set to equal the rate of duty for biodiesel.  The grants for ethanol are determined contractually by the Commonwealth Government.

1.5                   Registered entities that use fuel in their business activities for certain activities are entitled to claim fuel tax credits.  The rates of the fuel tax credits are calculated by subtracting any rebate or grant that applies from the applicable excise and excise-equivalent customs duty.

Summary of new law

1.6                   The amendments index the rate of excise and excise-equivalent customs duty applying to fuels, including gaseous fuels, in line with changes in the Consumer Price Index (CPI).  The rates of excise and excise-equivalent customs duty are indexed to the CPI on 1 August 2014, and then on 1 February and 1 August of each subsequent year.

1.7                   The additional net revenue from the reintroduction of fuel indexation is placed into a special account established by the FISA 2014.  The balance of the special account can only be used for road infrastructure funding.

1.8                   The FIRF 2014 amends the Fuel Tax Act 2006 to ensure that taxpayers generally use the same indexed rate of duty payable on the fuel for determining the amount of their fuel tax credits. 

Comparison of key features of new law and current law

New law

Current law

Indexation of duty on fuel

The rate of excise and excise-equivalent duty on fuels, including gaseous fuels, is indexed to the CPI twice a year.  No indexation occurs for aviation fuels, production of stabilised crude oil and condensate, or petroleum-based oils and greases. 

The rate of excise and excise-equivalent customs duty on fuels is not indexed.

Rounding of duty rate and road user charge

The indexed rates of excise and excise-equivalent customs duty for fuels (excluding aviation fuel and the other petroleum products listed above) are rounded to one decimal place of a cent.

The road user charge is also rounded to one decimal place of a cent.

No equivalent.  Duty rates for fuels are generally expressed to three decimal places of a cent.

 

 

No equivalent.

Special account for additional net revenue from fuel indexation

The net additional revenue from reintroducing fuel indexation is credited to a special account and amounts are debited from the account only for the purpose of road infrastructure funding.

No equivalent.

Calculation of fuel tax credits

Claimants who acquire or import fuel calculate their fuel tax credits using the duty rate on the day they acquired or imported the fuel.  The same rule applies to registered and unregistered claimants.

Claimants who manufacture the fuel and enter it for home consumption calculate their fuel tax credits using the duty rate on the day they enter the fuel for home consumption.

 

Registered claimants who acquire or import fuel after 30 November 2011 and before 1 July 2015 calculate their fuel tax credits using the duty rate on the day they acquired or imported the fuel.

Registered claimants who manufacture the fuel and enter it for home consumption after 30 November 2011 and before 1 July 2015 calculate their fuel tax credits using the duty rate on the day they enter the fuel for home consumption.

Registered claimants who acquire, manufacture or import the fuel after 30 June 2015 calculate their fuel tax credits using the rate on the first day of the tax period to which the credit is attributed.

Unregistered claimants calculate their fuel tax credits using the rate on the day the Commissioner receives their return.

Detailed explanation of new law

Indexation of the rates of excise and excise-equivalent customs duty for fuel

1.9                   This measure indexes the rates of excise and excise-equivalent customs duty applying to fuels.  The measure maintains the real value of excise and excise-equivalent customs duty collections.  The additional revenue is used to fund investment in road infrastructure.

1.10               Fuel indexation operates in a similar way to the indexation of the rates of excise and excise-equivalent customs duty applying to alcohol.  Indexation occurs on 1 February and 1 August each year and is based on changes in the CPI as published by the Australian Statistician.  [Schedule 1 of ETAFI 2014, items 1 to 6, subsections 6A(1), (2), (5), (6), (8) and (9) of ETA 1921, Schedule 1 of CTAFI 2014, items 1 to 7, subsections 19(1), (2), (5), (6), (8), (9) and (10) of CTA 1995]

1.11               Indexation applies to the following fuels:

•        petroleum condensate and stabilised crude petroleum oil used as a fuel;

•        topped crude petroleum oil;

•        refined or semi-refined liquid products derived from petroleum;

•        liquid hydrocarbon products;

•        liquefied petroleum gas;

•        liquefied and compressed natural gas;

•        denatured ethanol for use in an internal combustion engine;

•        biodiesel; and

•        blends of the above products.

[Schedule 1 of ETAFI 2014, item 7, subsection 6A(10) of ETA 1921, Schedule 1 of CTAFI 2014, item 8, section 19AAB of CTA 1995]

1.12               Indexation does not apply to the rates of excise and excise-equivalent customs duty applying to aviation fuels as the net excise and excise-equivalent customs duty collected from aviation fuels is hypothecated to fund the Civil Aviation Safety Authority.  Also indexation does not apply for certain imported goods to the component of the duty rate that is calculated as a percentage of the value of the goods.  [Schedule 1 of CTAFI 2014, item 8, section 19AAB of CTA 1995]

1.13               The duty payable on petroleum products is generally worked out by applying duty at a set rate of cents per litre or kilogram of the product.  However, duty on production of stabilised crude oil and condensate under items 20 and 21 of the Schedule to the ETA 1921 is calculated as a percentage of the weighted-average selling price of product from the production field.  Accordingly, indexation does not apply to the production of stabilised crude oil and condensate under items 20 and 21.

1.14               Indexation applies to blends of fuels.  The rate of excise duty for fuel blends is determined by using a five-step process.  First, the entity calculates the duty that would be payable on each fuel constituent in the blend.  The appropriate duty rate is the rate at the time that duty on the blend is payable and takes into account indexation.  [Schedule 1 of ETAFI 2014, item 9, subsection 6G(1) of ETA 1921]

1.15               The second and third steps require the entity to determine the volume of fuel that is not attributable to one of the fuel constituents or to water, and to calculate the duty payable on these non-fuel constituents.  The rate of duty is the same as the indexed rate of duty that applies to petrol and diesel in item 10 of the Schedule to the ETA 1921.  [Schedule 1 of ETAFI 2014, items 7 and 10, subsections 6A(10) and 6G(1) of ETA 1921]

1.16               The fourth step in subsection 6G(1) of the ETA 1921 requires the entity to add the duty calculated in steps 1 and 3.  Finally, the entity subtracts any duty that has already been paid.

Example 1.1 :  Duty on fuel blends where duty has been paid on a constituent at the same rate

A manufacturer makes a solvent blend to a customer’s specification from 10,000 litres of toluene and 100 litres of a synthetic performance enhancer on 21 January 2015.  Duty was paid on the toluene on 21 December 2014.  Assume that the CPI indexed rate for toluene on 1 August 2014 is 39.5 cents per litre.

Toluene is classified to subitem 10.25 of the Schedule to the ETA 1921.  The synthetic performance enhancer is not classified in its own right in the Schedule to the ETA 1921.

The blend is classified to subitem 10.30 of the Schedule to the ETA 1921 (assume that the blend is not excluded from subitem 10.30 by the operation of section 77J of the Excise Act 1901 ).  The duty on the blend is calculated under subsection 6G(1) of the ETA 1921 as follows:

Step 1

10,000 litres of toluene × 39.5 cents per litre

$3950.00

Step 2

100 litres of synthetic performance enhancer

 

Step 3

100 litres × 39.5 cents per litre

$39.50

Step 4

Add the amounts in steps 1 and 3

$3989.50

Step 5

Less duty paid (10,000 litres × 39.5 cents)

-$3950.00

 

Duty payable on the blend

$39.50

Example 1.2 :  Duty on fuel blends where duty has been paid on a constituent at a lower rate

Assume the same facts as in Example 1.1 but that the duty was paid on the toluene on 21 June 2014 at a rate of 38.143 cents per litre.  The duty on the blend is calculated as follows:

Step 1

10,000 litres of toluene × 39.5 cents per litre 

$3950.00

Step 2

100 litres of synthetic performance enhancer

 

Step 3

100 litres × 39.5 cents per litre

$39.50

Step 4

Add the amounts in steps 1 and 3

$3989.50

Step 5

Less duty paid (10,000 litres × 38.143 cents)

-$3814.30

 

Duty payable on the blend

$175.20

 

Rounding of duty payable

1.17               The indexed rates of excise and excise-equivalent customs duty for fuels (excluding aviation fuels) are rounded to one decimal place of a cent. This simplifies the fuel tax credit claim calculation for claimants of fuels such as petrol and diesel that currently have a rate of duty calculated to three decimal places of a cent (otherwise expressed as five decimal places of a dollar). [Schedule 1, item 8 of ETAFI 2014, subsection 6AAA(1), (3) and (4) of ETA 1921, Schedule 1, item 8 of CTAFI 2014, subsections 19AAA(1) and (3) of CTA 1995]    

1.18               The rounding rules in subsection 6A(2) of the ETA 1921 and subsection 19(2) of the CTA 1995 still apply for the purposes of calculating the CPI indexed rate of duty for each indexation period. Accordingly, the calculation of CPI indexed rates uses rates expressed to three decimal places of a cent for fuels such as petrol and diesel but with the result of the calculation rounded to one decimal place of a cent. [Schedule 1, item 8 of ETAFI 2014, subsections 6AAA(2), (3) and (4) of ETA 1921, Schedule 1, item 8 of CTAFI 2014, subsections 19AAA(2) and (3) of CTA 1995]    

Example 1.3 :  Calculating rounding of indexed duty payable on diesel

On 1 August 2014 CPI indexation applies. Assume that the indexation factor for 1 August 2014 is 1.035. Accordingly the CPI indexed duty rate for diesel on 1 August 2014 is 39.5 cents per litre (or $0.395 per litre). This is calculated by multiplying the indexation factor by the pre 1 August 2014 duty rate (38.143 cents per litre x 1.035 = 39.478 cents per litre rounded up to one decimal place of a cent being 39.5 cents per litre).

On 1 February 2015 CPI indexation applies. Assume that the indexation factor for 1 February 2015 is 1.022. Accordingly the CPI indexed duty rate for diesel on 1 February 2015 is 40.3 cents per litre (or $0.403 per litre). This is calculated by multiplying the indexation factor by the 1 August 2014 rate before rounding (39.478 cents per litre x 1.022 = 40.347 cents per litre). The result of this calculation is then rounded down to one decimal place of a cent being 40.3 cents per litre.

 

Special account for additional net revenue from fuel indexation

1.19               The FISA 2014 establishes a special account called the Fuel Indexation (Road Funding) Special Account.  [Schedule 1, section 7 of FISA 2014]

1.20               A special account is a mechanism that sets aside an amount within the Commonwealth’s Consolidated Revenue Fund.  The amount in the special account must be expended for a particular purpose. 

1.21               The purpose of the special account established by the FISA 2014 is to ensure that the additional net revenue collected from the reintroduction of fuel indexation is used to fund road infrastructure investment.  The additional net revenue is calculated by determining the excise and excise-equivalent customs duty collected as a result of the reintroduction of fuel indexation and subtracting the estimated amount of fuel tax credits, grants and other similar amounts that are payable to the extent they relate to the additional duty collected from reintroducing fuel indexation.  [Schedule 1, section 9 of FISA 2014]

1.22               The FISA 2014 extends to external Territories and binds the Crown in each of its capacities.  However, it does not make the Crown liable to be prosecuted for an offence.  [Schedule 1, sections 5 and 6 of FISA 2014]

Simplified outline

1.23               The simplified outline in the FISA 2014 is designed to assist readers by describing the main provisions in the legislation in general terms.  [Schedule 1, section 3 of FISA 2014]

1.24               As the outline is not intended to be comprehensive it is important to rely on the substantive provisions.

Credits to the special account

1.25               The Treasurer determines, in writing, the amount to credit to the special account.  This results in a credit from the Consolidated Revenue Fund to the special account equal to the amount of the determination.  [Schedule 1, subsection 8(1) of FISA 2014]

1.26               The determination must state that a specified amount is credited to the special account on a specified day.  [Schedule 1, subsection 8(1) of FISA 2014]

1.27               The Treasurer must have regard to the purpose of the special account when making the determination.  This ensures that the amount of the determination is an estimate of the net additional revenue from the reintroduction of fuel indexation.  [Schedule 1, subsection 8(2) of FISA 2014]

1.28               The determination must be made as soon as practicable after 1 July each year once the net additional revenue from fuel indexation for the immediately preceding financial year can be determined.  In practice, the Treasurer can only estimate the net additional revenue from fuel indexation several months after the end of the financial year once Business Activity Statements, which include fuel tax credit claims, have been lodged and grant and rebate claims have been made.  [Schedule 1, paragraph 8(4)(b) of FISA 2014]

1.29               The Treasurer must make only one determination a year.  The FISA 2014 does not exclude the general power to amend a determination in subsection 33(3) of the Acts Interpretation Act 1901 .  Nevertheless, it is not anticipated that the Treasurer would vary the amount of a determination.  Any adjustments that occur to duty collections or grant, credit or rebate claims after a determination is made are reflected in the amount worked out for the next year’s determination.  [Schedule 1, paragraph 8(4)(a) of FISA 2014]

1.30                The determination is administrative in character and would not ordinarily be considered to be a legislative instrument.  However, for the purposes of transparency, it has been decided that the determination should be treated as a legislative instrument under the Legislative Instruments Act 2003 despite its administrative character.  This ensures that the determination is published on the Federal Register of Legislative Instruments.  [Schedule 1, subsection 8(3) of FISA 2014]

1.31               The Treasurer does not have a broad discretion to determine the amount to credit to the special account as the Treasurer must have regard to the purpose of the account and the amount of net additional revenue from fuel indexation.  Decisions which are administrative in character and non-discretionary are not generally treated as disallowable legislative instruments.  Accordingly, given the administrative nature of the determination, the provisions ensure that the determination is not disallowable under section 42 of the Legislative Instruments Act 2003.  [Schedule 1, subsection 8(3) of FISA 2014]

1.32               Treating the determination as not disallowable minimises uncertainty.  The risk of disallowance would delay decisions to apply the amounts in the special account for road infrastructure funding until after the disallowance period had expired.  Delays would also occur if the instrument was disallowed and arrangements needed to be put in place for remaking a revised instrument or legislation needed to be passed to give effect to the intended operation of the determination.

Debits from the special account

1.33               The balance of the special account must be used to make grants of financial assistance to the States and Territories for the purpose of investing in road infrastructure.  [Schedule 1, section 9 of FISA 2014]

1.34               The Commonwealth has the power to make conditional grants of financial assistance to the States and Territories under sections 96 and 122 of the Australian Constitution.  The terms and conditions of the grant must be set out in a written agreement between the Commonwealth and the relevant States and Territories.  A Commonwealth Minister has the power to enter into the agreement on behalf of the Commonwealth.  [Schedule 1, section 11 of FISA 2014]

1.35               The Commonwealth makes grants of financial assistance to the States and Territories through the COAG Reform Fund special account established under the COAG Reform Fund Act 2008 .  Funds are payable from the Fuel Indexation (Road Funding) Special Account in accordance with the existing payment processes.

1.36               When a payment is to be made to a State or Territory for road infrastructure in accordance with the relevant written agreement, the Infrastructure Minister directs, in writing, that a specified amount is to be debited from the special account and credited to the COAG Reform Fund special account.  [Schedule 1, subsection 10(1) of FISA 2014]

1.37               The declaration enables the amounts to be debited from the COAG Reform Fund for the purpose of making a specified grant of financial assistance to the States and Territories.  This debiting should occur as soon as practicable.  [Schedule 1, subsection 10(2) and (3) of FISA 2014]

1.38               The Infrastructure Minister may make multiple directions in the same year and in the same document.  This differs from determinations made by the Treasurer which may only be made once a year.  The Infrastructure Minister makes periodic transfers as road infrastructure payments become due throughout the year in accordance with the relevant written agreement.  [Schedule 1, subsection 10(4) of FISA 2014]

1.39               The Infrastructure Minister’s directions are not a legislative instrument within the meaning of section 5 of the Legislative Instruments Act 2003 as they are administrative in character.  [Schedule 1, subsection 10(5) of FISA 2014]

1.40               The Infrastructure Minister is defined as the Minister that is responsible for the administration of the Infrastructure Australia Act 2008.  [Schedule 1, section 4 of FISA 2014]

1.41               After the funds have been transferred from the special account to the COAG Reform Fund special account following the Infrastructure Minister’s direction, the funds will then be paid to the States and Territories as part of the normal regular payments from the COAG Reform Fund special account.  The Treasurer must ensure that these funds are paid to the States and Territories as soon as practicable after the amount is credited to the COAG Reform Fund special account.  [Schedule 1, section 11 of FISA 2014]

Delegation

1.42               The Infrastructure Minister may, by writing, delegate the Minister’s functions to the Secretary of the Infrastructure Department, or a Senior Executive Service (SES) employee or an acting SES employee in the Department.  A delegation power is necessary and appropriate as the Minister is required to make periodic declarations throughout each year as grants are made.  [Schedule 1, section 13 of FISA 2014]

1.43               The Treasurer may delegate, in writing, the debiting of the COAG Reform Fund special account to the Secretary to the Treasury or an SES employee, or acting SES employee in the Department.  [Schedule 1, section 14 of FISA 2014]

1.44               The Treasurer does not need a power to delegate the determination of the amounts to be credited to the special account because these determinations are made only once a year. 

1.45               The Infrastructure Department is defined as the Department administered by the Infrastructure Minister while the Treasury is defined as the Department administered by the Treasurer.  The terms SES employee and acting SES employee have the meaning set out in section 2B of the Acts Interpretation Act 1901 [Schedule 1, section 4 of FISA 2014]

Reporting requirements and regulation-making power

1.46               There are no specific reporting requirements in the FISA 2014 as Budget Paper No. 4 sets out the estimated cash flows and balances of all special accounts.

1.47               The Governor-General may make regulations which are necessary or convenient for giving effect to the FISA 2014.  [Schedule 1, section 15 of FISA 2014]

Calculation of fuel tax credits

1.48               The amount of the fuel tax credit for an amount of fuel depends on the rate of excise or excise-equivalent customs duty applying to the fuel (section 43-5 of the Fuel Tax Act 2006 ).

1.49               Claimants who acquire or import the fuel use the rate of duty applying on the day that they acquired or imported the fuel.  Claimants who manufacture the fuel and enter it for home consumption use the rate of duty applying on the day they enter the fuel for home consumption

1.50               This amendment seeks to ensure that the same indexed rate is used for determining the amount of excise or excise-equivalent customs duty payable on the fuel and the amount of the fuel tax credit.  These rules also apply in determining the rate of duty used in working out a claimant’s fuel tax credit entitlement after deducting the road user charge and any applicable grant for biodiesel or renewable diesel.  [Schedule 4, items 1, 2 and 3 of FIRF 2014, subsections 43-5(2A) and 43-10(6) of the Fuel Tax Act 2006]

1.51               The provisions that applied before the amendment used the duty rate on the first day of the tax period to calculate the amount of the fuel tax credits after 30 June 2015 for most registered claimants.  This may have understated the fuel tax credits for claimants who report quarterly or annually.  These claimants may have paid the higher indexed rate of duty, or acquire fuel that has borne the higher rate on or after 1 February or 1 August, but could only claim fuel tax credits based on the lower duty rate applying on the first day of a tax period starting on 1 January or 1 July. 

1.52               The special rule for determining the appropriate duty rate for unregistered claimants is also removed.  Formerly, unregistered claimants used the excise rate applying on the day the Commissioner of Taxation received the return relating to the fuel.  If this rule was retained after indexation, unregistered claimants would be able to gain an advantage by postponing the lodgment of their fuel tax returns.  [Schedule 4, item 1 of FIRF 2014, subsection 43-5(2A) of the Fuel Tax Act 2006]

1.53               The rate of the road user charge set out in the Road User Charge Determination (No. 1) 2013 of 26.14 cents is reduced to one decimal place of a cent, that is, 26.1 cents effective from 1 August 2014.  This ensures that the rate is consistent with the rounding of duty rates to one decimal place of a cent from 1 August 2014 and simplifies the fuel tax credit claim calculation for heavy vehicles using fuel for travelling on public roads.  [Schedule 4, item 6 of FIRF 2014]

1.54               In addition, future rates of the road user charge must also be rounded to one decimal place of a cent.  [Schedule 4, items 4 and 5 of FIRF 2014, subsection 43-10(11A) of the Fuel Tax Act 2006]

Consequential amendments

1.55               The Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011 (ETLAA 2011) and the Customs Tariff Amendment (Taxation of Alternative Fuels) Act 2011 (CTLAA 2011) increase excise and excise-equivalent customs duty on liquefied petroleum gas, and compressed and liquefied natural gas from 1 July 2015 as part of the final stage of the phase-in of taxation on gaseous fuels.

1.56               The increase in the rates of duty that applies on 1 July 2015 to gaseous fuels is indexed to ensure that the rates increase in line with the CPI.  The indexed duty rates are rounded to one decimal place of a cent.  [Schedule 1, item 12 of ETAFI 2014, section 6FAA of ETLAA 2011, Schedule 1, item 10 of CTAFI 2014, section 19AD of CTLAA 2011]

1.57               Consequential amendments are made to the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 to make it clear that the amount of the cleaner fuel rebates for biodiesel and renewable diesel are calculated by using the biodiesel duty rate that applied at the time when the cleaner fuel was entered for home consumption.  [Schedule 5, items 1 to 4 of FIRF 2014, Regulations 6 and 7C of the Energy Grants (Cleaner Fuels) Scheme Regulations 2004]

1.58               Consequential amendments are also made to the Excise Act 1901 to ensure that a fuel is not classified as a blend and subject to duty if parts of the fuel attracted a different rate of duty only because of indexation.  [Schedule 3, item 1 of FIRF 2014, subsection 77H(2AA) of the Excise Act 1901]

1.59               A note is added to section 5 of the COAG Reform Fund Act 2008 .  The note sets out that amounts may be credited to the COAG Reform Fund special account under the FISA 2014.  [Schedule 2, item 1 of FIRF 2014, subsection 5(2) of the COAG Reform Fund Act 2008]

1.60               The FIRF 2014 makes consequential amendments that are contingent on the commencement of the relevant parts of the Public Governance Performance and Accountability Act 2013 (PGPA 2013).  The changes reflect that the PGPA 2013 refers to ‘special accounts’ in lower case whereas the Financial Management and Accountability Act 1997 (FMAA 1997) uses upper case when referring to ‘Special Accounts’.  A contingent amendment is also made to the provision which states that the Fuel Indexation (Road Funding) Special Account is a special account under the FMMA 1997.  This amendment substitutes a reference to the PGPA 2013 for the reference to the FMAA 1997.  [Schedule 1 of FIRF 2014, items 1 to 15, sections 3, 4, 7, 8, 9 and 10 of FISA 2014]

Application and transitional provisions

Application provisions

1.61               Indexation applies to goods manufactured or produced in Australia, or imported into Australia, on or after 31 July 2014.  It also applies to goods imported into Australia, or manufactured or produced in Australia, before 31 July 2014 but which have not yet been entered into home consumption.  The amendments commence on 31 July 2014.  This removes any doubt that the amendments apply for the purposes of indexation on 1 August 2014.  [Schedule 1, item 11 of ETAFI 2014, Schedule 1, item 9 of CTAFI 2014, c lause 2 of ETAFI 2014, clause 2 of CTAFI 2014]

1.62               The consequential amendments that impose the final increase in duty for alternative fuels have effect from 1 July 2015 under clause 12 of the ETLAA 2011 and clause 134 of the CTLAA 2011.  [Schedule 1, item 12 of ETAFI 2014, section 6FAA of ETLAA 2011, Schedule 1, item 10 of CTAFI 2014, section 19AD of CTLAA 2011]

1.63                The amendments to the Fuel Tax Act 2006 commence on 31 July 2014.  They apply to tax periods, starting on or after 1 July 2014 and to returns that relate to a fuel tax return period and are lodged with the Commissioner on or after 1 July 2014.  Although this has an element of retrospectivity, taxpayers will not be adversely affected as the fuel tax credit rate for acquisitions, importations and the entry of manufactured fuels in the period 1 July 2014 to 31 July 2014 will not change.  [Schedule 4, item 3 of FIRF 2014, clause 2 of FIRF 2014]

1.64               The consequential amendments to the Excise Act 1901 concerning blending and to the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 concerning the rate of rebate commence on 31 July 2014.  [Clause 2 of FIRF 2014]

1.65               The FISA 2014 and the provision in the FIRF 2014 which inserts a note into the COAG Reform Fund Act 2008 commence on 1 July 2015 This ensures that the special account which holds net revenue from fuel indexation can be first credited with an amount after the end of the 2014-15 financial year once the net revenue collected for the 2014-15 financial year can be calculated.  [Clause 2 of FISA 2014, clause 2 of FIRF 2014]

1.66               The consequential amendments to the capitalisation of the words “special accounts” in the FISA 2014 commence on the later of 1 July 2015 and the commencement of section 6 of the PGPA 2013.  [Clause 2 of FIRF 2014]

Transitional provisions

1.67               The legislative instrument that gives effect to the road user charge that is in force when the ETAFI 2014 commences is treated as being rounded to one decimal place of a cent from 1 August 2014.  [Schedule 4, item 6 of FIRF 2014]

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Excise Tariff Amendment (Fuel Indexation) Bill 2014, Customs Tariff Amendment (Fuel Indexation) Bill 2014, Fuel Indexation (Road Funding) Special Account Bill 2014 and the Fuel Indexation (Road Funding) Bill 2014

1.68               The Excise Tariff Amendment (Fuel Indexation) Bill 2014, the Customs Tariff Amendment (Fuel Indexation) Bill 2014, Fuel Indexation (Road Funding) Special Account Bill 2014 and the Fuel Indexation (Road Funding) Bill 2014 are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

Overview

1.69               The Excise Tariff Amendment (Fuel Indexation) Bill 2014 and the Customs Tariff Amendment (Fuel Indexation) Bill 2014 amend the Excise Tariff Act 1921 and the Customs Tariff Act 1995 to index the rate of excise and excise-equivalent customs duty applying to fuels to fund investment in road infrastructure. 

1.70               The Fuel Indexation (Road Funding) Bill 2014 amends the Fuel Tax Act 2006 to ensure that taxpayers generally use the same indexed rate for determining the amount of duty payable on the fuel and the amount of their fuel tax credits. 

1.71               The Fuel Indexation (Road Funding) Special Account Bill 2014 establishes a special account to ensure that the net additional revenue from fuel indexation must be used for road infrastructure investment. 

Human rights implications

          These Bills do not engage any of the applicable rights or freedoms.

Conclusion

          These Bills are compatible with human rights as they do not raise any human rights issues.



What is fuel excise?

2.0                   Fuel tax (excise or customs duty) is applied to all excisable fuel and petroleum products whether domestically produced or imported.

2.1                   The rate applicable to each fuel varies, but the benchmark rate that applies to petroleum and diesel is currently set at 38.143 cents per litre.  The tax is applied at the point at which the fuel enters the Australian market.  For domestically produced fuels, this is generally at the point of wholesale, while for imported fuels, it is at the point of delivery for home consumption.

2.2                   Indexation of fuel tax was introduced in August 1983 in order to maintain the real value of tax collections and to provide more stability for businesses and consumers by removing the need for discretionary changes to tax rates (larger amounts made less frequently).  In March 2001, the then Government abolished the six monthly indexation of fuel tax rates, but continued to apply indexation to other excisable goods, such as alcohol and tobacco.  This decision was taken following the introduction of the GST on 1 July 2000, as increasing world oil prices at the time gave rise to concerns that fuel prices would be pushed higher.  Consequently, the fuel tax on petrol and diesel has remained at 38.143 cents per litre since then.

2.3                   The Australia’s Future Tax System report released in May 2010 recommended that revenue from fuel tax imposed for general government purposes should be replaced over time with revenue from more efficient broad-based taxes. 

2.4                   The report also recommended that fuel tax should apply to all fuels used in road transport on the basis of energy content, and be indexed to the consumer price index (CPI).

Why is government action needed?

2.5                   Since the cessation of fuel tax indexation in March 2001 the real value of fuel tax has declined with inflation, creating significant difficulties for the Government to fund spending commitments, such as new road infrastructure projects.  At the time of the indexation freeze, fuel tax represented 43.4 per cent of the average national petrol price.  By March 2014 this proportion had fallen to 25 per cent.

2.6                   In the 2014-15 Budget the Government committed to increasing road expenditure, with over $26 billion of Commonwealth spending planned for road infrastructure projects.  An increase in the rate of fuel tax would be used to help fund these infrastructure projects.  This would create a link between the users of the road infrastructure and the payers of fuel tax whilst ensuring a predictable and growing source of revenue.

2.7                   Unlike fuel, rates on alcohol and tobacco are currently indexed.  Alcohol (excluding wine) is indexed to the CPI, which changes biannually in February and August every year.  As of March 2014, tobacco has changed from CPI indexation to Average Weekly Ordinary Time Earnings (AWOTE) indexation and is now indexed in March and September every year.

What policy options are you considering?

Option 1:  Biannual CPI indexation

2.8                   Beginning 1 August 2014 the excise and excise-equivalent customs duty on all non-aviation fuels are indexed to the CPI, occurring on 1 February and 1 August each year thereafter based on the sum of the CPI movements in the two quarters prior to the indexation date.

2.9                   The duty on gaseous fuels will increase on 1 July 2014 in accordance with their transition into the fuel tax system, and will then have biannual CPI indexation applied to them from 1 August 2014.  On 1 July 2015 the duty rate will then rise by an interval such that it maintains a 50 per cent discount on the energy content equivalent rate with the application of indexation.

2.10               For consumers of petrol and diesel, the reintroduction of indexation is expected to result in an initial price increase of around 0.5 cents per litre on 1 August 2014.

2.11               By the end of the forward estimates period in July 2018 the biannual indexation of fuel excise and excise-equivalent customs duty is estimated to result in a total increase in petrol and diesel prices of 4.1 cents per litre, which includes a 0.4 cent per litre increase in GST which is levied on the duty-inclusive price.

Option 2:  Quarterly CPI indexation

2.12               Beginning 1 August 2014 the excise and excise-equivalent customs duty on all non-aviation fuels are indexed to the CPI, occurring on 1 February, 1 May, 1 August and 1 November each year thereafter based on the CPI movement in the quarter prior to the indexation date.

2.13               The duty on gaseous fuels will increase on 1 July 2014 in accordance with their transition into the fuel tax system, and will then have quarterly CPI indexation applied to them from 1 August 2014.  On 1 July 2015 the duty rate will then rise by an interval such that it maintains a 50 per cent discount on the energy-content equivalent rate with the application of indexation.

2.14                For consumers of petrol and diesel, the reintroduction of indexation is expected to result in a price increase of around 0.5 cents per litre after two indexation periods.

2.15               By the end of the forward estimates period in July 2018, the quarterly indexation of fuel excise and excise-equivalents customs duty will result in a larger increase in petrol and diesel prices than the biannual indexation due to compounding effects. 

Option 3:  A one-off increase of four cents

2.16               On 1 August 2014 the excise and excise-equivalent customs duty rates on petrol and diesel are increased by 4 cents per litre, with all other non-aviation fuels having pro-rated increases.  This would increase the duty rate on petrol and diesel from 38.143 cents per litre to 42.143 cents per litre.

2.17               Gaseous fuels would continue to increase at the same intervals as previously until they reach their full rate on 1 July 2015 and then have an additional 10.5 per cent increase on 1 July 2016, bringing the duty rate on gaseous fuels back in line with 50 per cent of the energy equivalent rate.

What is the likely impact of each option?

Fuel wholesalers and importers

2.18               The Australian Competition and Consumer Commission (ACCC) currently publishes an annual price monitoring report on the Australian petroleum industry.  The most recent was published in December 2013.  [1]

2.19               In that report, the ACCC stated that the wholesale market for petroleum is dominated by four major players (BP, Shell, Caltex and Mobil).  These four entities accounted for 92 per cent of wholesale petrol sale volumes in 2012-13.

2.20               According to further data provided by the Australian Taxation Office (ATO), there are fewer than 100 remitters of fuel excise (excluding aviation fuel remitters).

2.21               For the options which change the current treatment of fuel tax (all options), the initial compliance cost imposed on wholesale remitters is likely to be felt through the need for an update to their systems to enable changes to the rate they apply when on-selling the fuel. 

2.22               As a result, the compliance cost assessment uses the average wage in the IT industry of $47 per hour and assumes an average of five hours to update each of the 97 fuel companies.  This creates a total compliance cost for the industry of approximately $22,795 for all of the considered options (a Regulatory Burden and Cost Offset (RBCO) Estimate Table for option 1 is provided at Appendix A ).

2.23               However, some of the oil companies may not need the initial update to their systems as they will already have the ability to account for changing duty rates. 

2.24               There will also be ongoing compliance costs for the options, as a legislative change to the fuel excise and excise-equivalent customs duty will result in either biannual (Option 1), quarterly (Option 2) or once-off (Option 3) changes to the duty rate that the wholesalers charge purchasers of fuel.  Each change with indexation will require the manual inputting of a new duty rate into the company’s systems, with reference to the new duty rate announced by the ATO. 

2.25               The compliance costs for this action are assumed to be completed by administrative staff paid an average of $27 per hour, taking half an hour to find and change the excise and customs duty rates in the company’s system and done either biannually, quarterly or once only, depending upon which option is chosen.  This creates a total compliance cost for the industry of $2,619 for biannual indexation, $5,238 for quarterly indexation or $1,309 for the one-off increase (which would be the same as for an annual indexation option).

2.26               The indexed rates of fuel tax will be calculated by the ATO every indexation period, which will save businesses the need to calculate the new rate themselves by applying CPI to the present duty rate.

2.27               The size of these compliance costs is likely to vary from wholesaler to wholesaler, with smaller remitters of duty likely to face greater compliance cost relative to the four large oil companies.

Households and businesses

2.28               By re-introducing biannual indexation by the consumer price index of excise and excise-equivalent customs duty (Option 1) for all fuels except aviation fuels, the Government would generate $2.2 billion over the forward estimates period.

2.29               The price impact of any increase in fuel excise and excise-equivalent customs duty will fall most heavily on households and owners of light commercial vehicles used on-road.  However, there will be no increase in the compliance costs borne by these groups.

2.30               Similarly, the effect on demand of an increase in the fuel tax is expected to be minimal, due to the inelasticity of demand for most fuel products.  The Australia’s Future Tax System consultation paper noted that ‘due to limitations in current technology and distribution systems, the demand for transport fuels is relatively unresponsive to price.’ [2]

2.31               Fuel used in heavy (that is, more than 4.5 tonnes gross vehicle mass) on-road vehicles and business off-road use will not bear the burden of any fuel excise increases because of their entitlements to fuel tax credits.  For off-road activities, this is the full reimbursement of fuel tax while for heavy on-road vehicles this is equivalent to the fuel tax rate minus the road user charge.

2.32               However, businesses with access to fuel tax credits may still face increased compliance costs.  Fuel purchase records will need to be categorised before and after the indexation date and variable fuel tax credit entitlements will need to be calculated for standard reporting businesses with either quarterly or annual Business Activity Statements (BAS).  This will occur under any of the considered options to change the duty rates (all options), but will be an ongoing cost every six- or three-month period under the indexation options (Options 1 and 2).

2.33               The indexation of fuel excise will also further affect those businesses which rely on their own software to calculate their fuel tax credit claims, as they will have to manually enter the new excise rate every indexation period. 

2.34               The ongoing compliance costs for these actions depend on which option is chosen and may occur once-off, biannually or quarterly.  Assuming that all (approximately 186,000) fuel tax credit claimants are similarly affected by either filing a BAS quarterly or annually or through having to update their own software every month, the compliance costs are estimated at $27 per hour for a single administrative staff member to either sort through the fuel purchase records or change the excise rate in the software within half an hour.  This creates a total compliance cost for the industry of $5,037,903 for biannual indexation, $10,075,806 for quarterly indexation or $2,518,952 for the once-off increase.

2.35               Businesses with an entitlement to offsetting fuel tax credits may also face the possibility of increased cash flow issues due to a larger immediate outgoing of fuel tax, as they only receive the credit for fuel tax paid at the end of their tax period when they lodge their BAS. 

2.36               As a result of the more frequent indexation periods and the fixed time costs of any rate changes, quarterly indexation (Option 2) would likely involve higher compliance costs than biannual indexation (Option 1).

Alternative fuels

2.37               The gaseous fuels are not yet through their transition into the fuel tax system, which is set to be completed on 1 July 2015.  Reintroducing fuel tax indexation will further raise the scheduled increases in their fuel tax.

2.38               The Government announced in the 2014-15 Budget that it will make changes to the tax treatment of ethanol and biodiesel to end their respective industry support grants, the Ethanol Production Grants and the Cleaner Fuels Grants Scheme.  This is planned to begin on 1 July 2015 with the immediate cessation of the grants and a simultaneous reduction of the excise rate on domestically produced ethanol and biodiesel from its current rate of 38.143 cents per litre to zero.  The customs duty rate on imported ethanol and biodiesel will remain at 38.143 cents per litre.  Over the following five years to 2020-21, both products will be phased into the excise system until they reach 50 per cent of the energy content equivalent excise rate, similar to the expected treatment of gaseous fuels after 1 July 2015.

2.39               At current excise rates, 50 per cent of energy content equivalence would be 12.5 cents per litre for ethanol (increasing in 2.5 cent intervals over the five years) and 19.07 for biodiesel (in 3.814 cent intervals).  However, during the transition period, ethanol and biodiesel will be subject to indexation along with other non-aviation fuels, which will further raise the scheduled increases in their excise.

Consultation

2.40               A targeted consultation process on the compliance costs associated with a change to biannual fuel duty indexation was undertaken.  The four major fuel manufacturers in the Australian market (BP, Shell, Caltex and Mobil) have been consulted on the estimated costs associated with the reintroduction of fuel duty indexation.

2.41               While the fuel manufacturers are not overly concerned about the costs of updating their systems, they do have concerns about the time between the announcement of the new duty rate each indexation period and its application on 1 August or 1 February as they consider this could lead to disputes over payments from customers.

2.42               These timing concerns are largely driven by the relevant CPI figures only being released in late July and late January for the August and February indexation periods, respectively.  This gives the fuel manufacturers approximately one week to be forewarned of the new duty rate by the ATO and Customs.  One weeks’ notice for the new rate was standard practice in the years between 1983 and 2001, prior to the freezing of indexation for fuel products, and has continued to be standard practise for alcohol and tobacco duty (prior to tobacco moving to AWOTE indexation in March 2014).

2.43               Concerns were also raised about the impact of indexation on tying up working capital, as there is normally a delay between when the manufacturers remit excise and customs duty and when they receive payment from their customers. 

2.44               Further, the fuel manufacturers also raised concerns about the costs involved with informing customers of changed prices.  However, given the constant price volatility in fuel markets, the additional costs from fuel indexation involved with this are considered to be negligible in the context of the overall compliance costs of $5.1 million.

Conclusion and recommended option

2.45               In view of the Government’s commitment to deliver new road infrastructure projects through a predictable, growing source of revenue, it is considered that the reintroduction of some form of indexation of fuel tax (Options 1 or 2) is the preferred option. 

2.46               Given that biannual indexation was a standard feature of the fuel tax system prior to 2001 and due to the additional compliance costs expected from quarterly indexation (Option 2), the biannual indexation of fuel excise to the CPI from 1 August 2014 (Option 1), is the preferred option.  In addition, in comparison to annual indexation, biannual indexation would also result in a larger source of revenue which would allow the Government to more easily fund spending on new road infrastructure projects.

2.47               To further simplify the compliance burden on businesses, rounding the duty rate of indexed fuels from three decimal places in a cent to one decimal place would also be recommended.  On the current rate for petrol, this would have the effect of reducing the excise and excise-equivalent customs duty rate from 38.143 cents per litre to 38.1 cents per litre.

Implementation and review

2.48               The proposed approach is to biannually index non-aviation fuel excise and excise-equivalent customs duty to the CPI from 1 August 2014 by the introduction of legislation into the Parliament. 

2.49               The legislation would modify the Excise Tariff Act 1921 and the Customs Tariff Act 1995 .  These modifications will result in the reintroduction of the indexation to the CPI of excise and excise-equivalent customs duty on fuel products.  In addition, the applicable duties will now be applied by rounding to one decimal place for the purpose of remitting excise and the claiming of fuel tax credits.

2.50               To ensure that the fuel tax credit system works effectively, modifications will also be made to the Fuel Tax Act 2006 .  These modifications seek to ensure that the same indexed rate is used for determining the amount of excise or excise-equivalent customs duty payable on the fuel and the amount of the fuel tax credit for the same fuel.

2.51               Further changes to the Fuel Tax Act 2006 will also ensure that the road user charge is designated to three decimal places after the next determination by the Transport Minister as well as during the transition period prior to this determination, in order to prevent additional compliance burdens through an early determination. 

2.52               A separate Fuel Indexation (Road Funding) Special Account Bill 2014 will establish a special account in order to ensure that all net additional revenue gained from the indexation of fuel duty is used to fund the provision of new road infrastructure projects.

2.53               Consequential amendments will also be made to the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 to ensure that the Cleaner Fuels Grants Scheme continues to fully offset the increased fuel duty applying to biofuels.  Further amendments will be made to the Excise Act 1901 and the Financial Management and Accountability Act 1997 to ensure the proper functioning of the fuel duty indexation measure.

 

 



Appendix A:  Regulatory Burden and Cost Offset Estimate Table

Average Annual Compliance Costs (from Business as usual)

 

Costs

Business

Community Organisations

Individuals

Total Cost

Total by Sector

$5,063,317.00

$0

$0

$5,063,317.00

 

Cost offset

Business

Community Organisations

Individuals

Total by Source

Agency

$5,063,317.00

$0

$0

$5,063,317.00

Within portfolio

$0

$0

$0

$0

Outside portfolio

$0

$0

$0

$0

Total by Sector

$5,063,317.00

$0

$0

$5,063,317.00

 

Proposal is cost neutral?       R yes        * no          

Proposal is deregulatory       * yes        R no

Balance of cost offsets ( $ 132,988,606.10 )

 



 

Schedule 1:  Amendments (Excise Tariff Amendment (Fuel Indexation) Bill 2014)

Bill reference

Paragraph number

Items 1 to 6, subsections 6A(1), (2), (5), (6), (8) and (9) of ETA 1921

1.11

Items 7 and 10, subsections 6A(10) and 6G(1) of ETA 1921

1.16

Item 7, subsection 6A(10) of ETA 1921,

1.12

Item 8, subsection 6AAA(1), (3) and (4) of ETA 1921

1.18

Item 8, subsections 6AAA(2), (3) and (4) of ETA 1921

1.19

Item 8, section 19AAB of CTA 1995

1.13

Item 9, subsection 6G(1) of ETA 1921

1.15

Item 11

1.62

Item 12 of section 6FAA of ETLAA 2011

1.57, 1.63

Clause 2

1.62

Schedule 1:  Amendments (Customs Tariff Amendment (Fuel Indexation) Bill 2014)

Bill reference

Paragraph number

Items 1 to 7, subsections 19(1), (2), (5), (6), (8), (9) and (10) of CTA 1995

1.11

Item 8, section 19AAB of CTA 1995

1.12

Item 8, subsections 19AAA(1) and (3) of CTA 1995

1.18

Item 8, subsections 19AAA(2) and (3) of CTA 1995

1.19

Item 9

1.62

item 10, section 19AD of CTLAA 2011

1.57, 1.63

Clause 2

1.62

Schedule 1:  Amendments consequential on the enactment of the Public Governance, Performance and Accountability Act 2013 (Fuel Indexation (Road Funding) Bill 2014)

Bill reference

Paragraph number

Items 1 to 15, sections 3, 4, 7, 8, 9 and 10 of FISA 2014

1.61

Schedule 1:  Fuel Indexation (Road Funding) Special Account Bill 2014

Bill reference

Paragraph number

Section 3

1.24

Section 4

1.41, 1.46

Sections 5 and 6

1.23

Section 7

1.20

Subsection 8(1)

1.26

Subsection 8(1)

1.27

Subsection 8(2)

1.28

Subsection 8(3)

1.31, 1.32

Paragraph 8(4)(a)

1.30

Paragraph 8(4)(b)

1.29

Section 9

1.22, 1.34

Subsection 10(1)

1.37

Subsection 10(2) and (3)

1.38

Subsection 10(4)

1.39

Subsection 10(5)

1.40

Section 11

1.35, 1.42

Section 13

1.43

Section 14

1.44

Section 15

1.48

Schedule 2:  Consequential amendment for establishment of (Fuel Indexation (Road Funding) Special Account Bill 2014)

Bill reference

Paragraph number

Item 1 of FIRF 2014, subsection 5(2) of the COAG Reform Fund Act 2008

1.60

Schedule 3:  Consequential amendment for indexation (Fuel Indexation (Road Funding) Bill 2014)

Bill reference

Paragraph number

Item 1 of FIRF 2014, subsection 77H(2AA) of the Excise Act 1901

1.59

Schedule 4:  Fuel Tax (Fuel Indexation (Road Funding) Bill 2014)

Bill reference

Paragraph number

Item 1 of FIRF 2014, subsection 43-5(2A) of the Fuel Tax Act 2006

1.53

Items 1, 2 and 3 of FIRF 2014, subsections 43-5(2A) and 43-10(6) of the Fuel Tax Act 2006

1.51

Item 3 of FIRF 2014, clause 2 of FIRF 2014

1.64

Items 4 and 5 of FIRF 2014, subsection 43-10(11A) of the Fuel Tax Act 2006

1.55

Item 6 of FIRF 2014

1.54, 1.68

Schedule 5:  Energy Grants (Cleaner Fuel) Scheme (Fuel indexation (Road Funding) Bill 2014

Bill reference

Paragraph number

Items 1 to 4 of FIRF 2014, Regulations 6 and 7C of the Energy Grants (Cleaner Fuels) Scheme Regulations 2004

1.58

 

 

 




[1]      Australian Competition and Consumer Commission (2013) Monitoring of the Australian petroleum industry 2013 - Report of the ACCC into the prices, costs and profits of unleaded petrol in Australia ; http://www.accc.gov.au/publications/monitoring-of-the-australian-petroleum-industry. 

[2]     Australia’s Future Tax System (2008) Consultation Paper ; http://taxreview.treasury.gov.au/content/downloads/consultation_paper/consultation_paper.pdf.