Duties of excise on new oil
6C Duties of excise on new oil
Definitions
In this section:
adjusted previous year’s duty, in relation to a prescribed new production area in relation to a month of a financial year, means the amount of duty that, at the end of the financial year immediately preceding the financial year in which that month occurs, would have been payable in respect of new oil produced from that area and entered for home consumption during that preceding year if, for the prices that were, at the end of that preceding year, the applicable petroleum prices for all of the months of that preceding year, there had been substituted the prices that are, at the end of that first‑mentioned month, the respective applicable petroleum prices for all of those months.
non‑adjusted previous year’s duty, in relation to a prescribed new production area in relation to a month of a financial year, means the amount of duty that, at the end of the financial year immediately preceding the financial year in which that month occurs, would have been payable in respect of new oil produced from that area and entered for home consumption during that preceding year if, for the prices that were, at the end of that preceding year, the applicable petroleum prices for all of the months of that preceding year, there had been substituted the prices that were, immediately before the commencement of that first‑mentioned month, the respective applicable petroleum prices for all of those months.
prescribed new production area means a new petroleum production area prescribed by by‑laws (which, without limiting the generality of the foregoing, may be a relevant accumulation, a well, an oilfield or a gas field).
Introduction
The amount of duty in respect of new oil ascertained in accordance with this section shall be ascertained by reference to the prescribed new production area from which the oil is produced and to the month of a financial year during which the oil is entered for home consumption.
The amount of duty
Subject to subsection (3A), the amount of duty in respect of new oil produced from a prescribed new production area and entered for home consumption during a month of a financial year commencing on or after 1 July 2001 is the amount worked out using the formula:
Start formula Notional duty plus Debited adjustment amount minus open bracket Duty paid plus Credited adjustment amount close bracket end formula
where:
notional duty is the amount of notional duty in respect of new oil produced from that area and entered for home consumption during the period starting at the start of that financial year and ending at the end of that month, worked out in accordance with subsection (4).
debited adjustment amount is the debited adjustment amount (if any) for that area and that month, worked out in accordance with subsection (5A).
duty paid is the amount of duty (if any) paid in respect of new oil produced from that area and entered for home consumption during the period starting at the start of that financial year and ending at the end of that month.
credited adjustment amount is the credited adjustment amount (if any) for that area and that month, worked out in accordance with subsection (5B).
Disregarding certain amounts when working out amount of duty
In working out, for the purposes of subsection (3), the amount of duty paid in respect of new oil produced from a prescribed new production area and entered for home consumption during a period starting at the start of a financial year and ending at the end of a month of that year, the following amounts are to be disregarded:
any increases in the amount of duty paid as a result of the addition of debited adjustment amounts for that area for any of the preceding months of that year;
any decreases in that amount as a result of the subtraction of credited adjustment amounts for that area for any of those months.
The total amount of notional duty
The amount of notional duty in respect of new oil produced from a particular prescribed new production area and entered for home consumption during a particular period is the sum of the amounts of notional duty in respect of:
the quantity (if any) of the oil that exceeds Start formula A times 10B end formula but does not exceed Start formula A times 12B end formula;
the quantity (if any) of the oil that exceeds Start formula A times 12B end formula but does not exceed Start formula A times 14B end formula;
the quantity (if any) of the oil that exceeds Start formula A times 14B end formula but does not exceed Start formula A times 16B end formula; and
the quantity (if any) of the oil that exceeds Start formula A times 16B end formula;
where:
A is the number of days in the period.
B is:
where the period in a year in which there are 365 days—136.98630 kilolitres; or
where the period is in a year in which there are 366 days—136.61202 kilolitres.
The amount of notional duty for a quantity of oil—one petroleum price
Subject to subsections (6) and (9), the amount of notional duty in respect of a quantity of oil referred to in subsection (4) is an amount equal to the relevant percentage (set out in subsection (7)) of the product of:
the amount specified in the price that is, at the end of the period referred to in subsection (4) in relation to the quantity of oil, the applicable petroleum price for the month in which the period comes to an end; and
the number of kilolitres in that quantity;
calculated to the nearest cent.
The debited adjustment amount
Where:
during a month of a financial year, a VOLWARE price for stabilised crude petroleum oil for a month of the immediately preceding financial year and a particular prescribed new production area is determined under section 7 of the Petroleum Excise (Prices) Act 1987; and
the adjusted previous year’s duty for that prescribed new production area for that first‑mentioned month is greater than the non‑adjusted previous year’s duty for that area for that first‑mentioned month;
there is a debited adjustment amount for that area for that first‑mentioned month, being an amount equal to the difference between that adjusted previous year’s duty and that non‑adjusted previous year’s duty.
The credited adjustment amount
Where:
during a month of a financial year, a VOLWARE price for stabilised crude petroleum oil for a month of the immediately preceding financial year and a particular prescribed new production area is determined under section 7 of the Petroleum Excise (Prices) Act 1987; and
the adjusted previous year’s duty for that prescribed new production area for that first‑mentioned month is less than the non‑adjusted previous year’s duty for that area for that first‑mentioned month;
there is a credited adjustment amount for that area for that first‑mentioned month, being an amount equal to the difference between that non‑adjusted previous year’s duty and that adjusted previous year’s duty.
The amount of notional duty for a quantity of oil—more than one petroleum price
Where, at the end of a period in a financial year, the applicable petroleum prices for the months in which the period occurs and a particular prescribed new production area are not all the same, the amount of the notional duty in respect of a quantity of oil referred to in subsection (4) produced from that production area and entered for home consumption during the period is an amount equal to the relevant percentage (set out in subsection (7)) of the sum of the amounts calculated in respect of each such applicable petroleum price in operation during the period in accordance with the formula:
Start formula start fraction P times Q times K over KT end fraction end formula
where:
P is the amount specified in the applicable petroleum price.
Q is the number of kilolitres in the quantity of oil referred to in subsection (4).
K is the number of kilolitres of new oil produced from that production area and entered for home consumption during that part of the period during which the applicable petroleum price was in operation.
KT is the number of kilolitres of new oil produced from that production area and entered for home consumption during the period.
Relevant percentage for a quantity of oil
For the purposes of subsections (5) and (6), the relevant percentage in relation to a quantity of oil referred to in subsection (4) is:
in the case of a quantity to which paragraph 4(a) applies—10%; and
in the case of a quantity to which paragraph 4(b) applies—15%; and
in the case of a quantity to which paragraph 4(c) applies—20%; and
in the case of a quantity to which paragraph 4(d) applies—30%.
Rounding the number of kilolitres in a quantity of oil
For the purposes of subsections (5) and (6), the number of kilolitres in a quantity of oil shall be taken to be a number equal to:
unless paragraph (b) applies—the number of kilolitres in that quantity calculated to 1 decimal place; or
where the number of kilolitres in that quantity calculated to 2 decimal places ends in a number greater than 4—the number of kilolitres in that quantity calculated to 1 decimal place increased by 0.1.
The amount of notional duty—dealing with the first year of production
When no new oil produced from a particular prescribed new production area was ever entered for home consumption before the expiration of the first month of a particular financial year, then, in ascertaining, in accordance with subsections (4), (5) and (7) or (4), (6) and (7), the notional duty in respect of new oil produced from the production area and entered for home consumption during a later month (in this subsection referred to as the relevant month) of that financial year, those subsections have effect in relation to the new oil as if each reference in a paragraph of subsection (4) to B were a reference to the product of B and the factor ascertained in accordance with the formula:
Start formula start fraction M over N end fraction end formula
where:
M is the number of days in the period commencing on the day on which new oil produced from the prescribed new production area was first entered for home consumption and ending on the expiration of the relevant month; and
N is the number of days in the period commencing on the first day of the financial year and ending on the expiration of the relevant month.
Interpretation of the Schedule
The words set out after “, if higher,” in the column headed “Rate of Duty” in subitem 20.5 of the Schedule shall be deemed, for the purposes of this Act or any other law of the Commonwealth, to be a rate of duty.
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