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Excise Tariff Proposal (No. 1) 2014  


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2013-2014

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Excise Tariff Proposal (No. 1) 2014

 

 

 

Motion to be moved

1.         That the Excise Tariff Act 1921 be altered as set out in Schedule 1 to this Proposal, and that, despite subsection 5(2) of the Excise Tariff Act 1921 and Part 5 of Schedule 1 to the Excise Tariff Amendment (Taxation of Alternative Fuels) Act 2011 , the alterations:

                     (a)  in the case of the alterations set out in Part 1 of Schedule 1 to this Proposal—operate on and after 10 November 2014, and apply to goods manufactured or produced in Australia on or after 10 November 2014 and to goods for which all the following conditions are met:

                              (i)  the goods were manufactured or produced in Australia before 10 November 2014;

                             (ii)  on 10 November 2014, the goods either were subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods;

                            (iii)  no duty of excise had been paid on the goods before 10 November 2014; or

                     (b)  in the case of the alterations set out in Part 2 of Schedule 1 to this Proposal—operate on and after 31 January 2015, and apply to goods manufactured or produced in Australia on or after 31 January 2015 and to goods for which all the following conditions are met:

                              (i)  the goods were manufactured or produced in Australia before 31 January 2015;

                             (ii)  on 31 January 2015, the goods either were subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods;

                            (iii)  no duty of excise had been paid on the goods before 31 January 2015; or

                     (c)  in the case of the alterations set out in Part 3 of Schedule 1 to this Proposal—operate on and after 1 July 2015, and apply to goods manufactured or produced in Australia on or after 1 July 2015 and to goods for which all the following conditions are met:

                              (i)  the goods were manufactured or produced in Australia before 1 July 2015;

                             (ii)  on 1 July 2015, the goods either were subject to the CEO’s control, or were in the stock, custody or possession of, or belonged to, a manufacturer or producer of the goods;

                            (iii)  no duty of excise had been paid on the goods before 1 July 2015.

Schedule 1 Alterations to the Excise Tariff Act 1921

Part 1 Increase in fuel duty rates on 10 November 2014

1  Subsection 6G(1) (method statement, step 3)

Omit “$0.38143”, substitute “$0.386”.

2  Schedule (cell at table subitem 10.1, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

3  Schedule (cell at table subitem 10.2, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

4  Schedule (cell at table subitem 10.3, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

5  Schedule (cell at table subitem 10.5, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

6  Schedule (cell at table subitem 10.10, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

7  Schedule (cell at table subitem 10.15, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

8  Schedule (cell at table subitem 10.16, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

9  Schedule (cell at table subitem 10.18, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

10  Schedule (cell at table subitem 10.19A, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.101 per litre

11  Schedule (cell at table subitem 10.19B, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.212 per kilogram

12  Schedule (cell at table subitem 10.19C, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.212 per kilogram

13  Schedule (cell at table subitem 10.20, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

14  Schedule (cell at table subitem 10.21, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

15  Schedule (cell at table subitem 10.25, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

16  Schedule (cell at table subitem 10.26, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

17  Schedule (cell at table subitem 10.27, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

18  Schedule (cell at table subitem 10.28, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.386 per litre

Part 2 Indexation

19  Section 6A (heading)

Repeal the heading, substitute:

6A   Indexation of CPI indexed rates

20  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”.

21  Subsection 6A(1) (formula)

Repeal the formula, substitute:

22  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).

23  Subsection 6A(2)

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

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

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

25  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).

26  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 assumptions that:

                     (a)  the operation of subsection (1) of this section was disregarded in respect of all previous indexation days (if any); and

                     (b)  subsection 6A(2) permitted amounts worked out under subsection 6A(1) in respect of those indexation days to be rounded to 5 decimal places (rounding up if the next decimal place was 5 or more).

             (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;

                     (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.

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

After “would”, insert “, at the time the duty on the blended goods is payable,”.

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

Add:

Note:          Th e rate set out in step 3 is indexed under section 6A.

Part 3 Consequential amendments to enacted changes to alternative fuels

29  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)  $0.126 per litre; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.126 per litre—that indexed rate; and

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

                              (i)  $0.2644 per kilogram; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.2644 per kilogram—that indexed rate; and

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

                              (i)  $0.2644 per kilogram; or

                             (ii)  if the indexed rate worked out under subsection (2) is greater than $0.2644 per kilogram—that indexed rate.

             (2)  To work out the indexed rate, 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:

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

                     (b)  the amount of that rate on the day before 1 February 2015 is the amount set out in subparagraph (1)(a)(i), (1)(b)(i) or (1)(c)(i) (as applicable).