Crude oil and condensate
Stabilised Crude Petroleum Oil (SCPO) is crude oil with the volatile dissolved gases removed, 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.
SCPO and condensate produced onshore or within three nautical miles of the Australian coastline is subject to a production excise. SCPO and condensate produced offshore in the North West Shelf is also subject to a production excise. You need to hold an excise licence to produce SCPO and condensate from these areas.
For the first 4767.3 megalitres (30 million barrels) of SCPO or condensate from a particular field, and a subsequent quantity of annual production, no excise is payable. Once this initial threshold quantity produced by a field is exceeded, future production may attract excise duty depending on quantities extracted.
The amount of duty payable on the production of SCPO and condensate is calculated as a percentage of the weighted average realised (selling) price (VOLWARE) for product produced in a financial year from a producing field.
SCPO and condensate can attract two lots of excise duty. In addition to the production duty applicable under items 20 and 21 of the Schedule to the Excise Tariff Act 1921 (the Schedule), these products can also attract excise duty under item 10 of the Schedule unless they're used:
Crude oil and condensate are subject to excise. Crude oil includes stabilised crude petroleum oil and topped crude petroleum oil.
- in the recovery, production, pipeline transportation or refining of condensate or stabilised crude oil
- as feedstock at a licensed refinery.