What is stabilised crude oil?
Stabilised crude petroleum oil (stabilised crude oil) is crude oil with the volatile dissolved gases removed from it, making it safer to store and transport.
Condensate is a form of hydrocarbon that is liquid at standard temperature and pressure. It is obtained as part of the process of extracting crude oil and/or natural gas.
Yes. Stabilised crude oil and condensate produced onshore or within three nautical miles of the Australian coastline is excisable. Some stabilised crude oil and condensate produced offshore in the North West Shelf is also excisable.
The production of excisable goods requires an excise licence whether or not there will ever be a liability to pay any excise. For more information, you can contact us by phone, fax, email or post.
Excise may be payable for the production of stabilised crude oil and condensate. In addition, excise may be payable again at the standard fuel excise rate unless it is used for the purposes described in the next paragraph, regardless of whether it was subject to the production excise.
You will have to pay the standard rate of fuel excise under Item 10 in the Schedule to the Excise Tariff Act 1921, on all production, whether excisable or not, unless the stabilised crude or condensate is used:
- in the recovery, production, pipeline transportation or refining of condensate or stabilised crude oil, or
- as feedstock at a refinery licensed under the Excise Act 1901.
Any stabilised crude or condensate for use in the recovery or production of stabilised crude oil or condensate is free of excise.
The first 4767.3 mega litres (30 million barrels) of stabilised crude and or condensate from a particular field and a subsequent quantity of annual production is free of excise. Once the initial excise-free quantity produced by a field is exceeded and the rate of production exceeds the annual excise-free limit, excise is payable in accordance with Item 20 (stabilised crude oil) and Item 21 (condensate) in the Schedule to the Excise Tariff Act.
The amount of duty payable on the production of stabilised crude oil and condensate is calculated as a percentage of the weighted average selling price for product produced in a financial year from a producing field.
Stabilised crude oil and condensate may pay excise twice, depending on its source and its use.
Stabilised crude oil and condensate subject to the production excise is also subject to excise duty, even if the goods are exported.
More information
For more information on excise licensing or condensate you can contact us by phone, fax, email or post. Or visit our website at www.ato.gov.au/excise
Last Modified: Thursday, 26 February 2009