What you need to do

If you supply goods in the circumstances listed, you are entitled to an automatic remission of excise duty on those goods.

To ensure an automatic remission of duty applies, you must take the following steps to check that the end user is entitled to receive the goods under an automatic remission.

Official stationery

In the following circumstances, each order you receive must be on official stationery from:

  • the Governor-General, State Governors, certain international organisations, the government of a country other than Australia and those covered by a Status of Forces Agreement and confirmation that the goods are for official use
  • diplomatic missions and consular posts – they must also indicate whether the goods are for official or personal use
  • those using samples of tobacco for an approved medical, scientific, horticultural or agricultural purpose – they must also include a copy of the letter of approval from us.

Department of Defence form

Orders you receive from the RAN or AMF must be on the Department of Defence form SP113.

LPG or LNG is not used as a transport fuel

If you supply LPG or LNG duty unpaid on the basis that an automatic remission of the duty applies (that is, the goods are for non-transport use) you must have a reasonable expectation that the goods will not be used as a transport fuel. Penalties can apply to both the supplier and end-user if LPG or LNG was supplied with an automatic remission of the duty but used as a transport fuel.

If you are supplying LPG with an automatic remission of the duty, you should include the following notice on your invoices:

  • 'Not to be used, or supplied, for transport use. Penalties apply.'

The notice is not required when the LPG is supplied in containers 210 kilograms or less or when the LPG is supplied to a residential premises and not for business use.

Periodic settlement permission

A periodic settlement permission (PSP) allows you to deliver excisable goods into the Australian domestic market (for home consumption) over a specified period (settlement period).

You need to hold a PSP to supply goods under automatic remission. You do not need to report sales you have supplied under an automatic remission unless we request you to.

You don't need approval from us before you release goods that are subject to automatic remission. You therefore do not have to do either of the following:

  • enter these goods on an Excise return (NAT 4285) form
  • seek remission on an Excise remission (NAT 4289) form.

See also:

Record keeping

You must keep orders and other records of your business operations for five years from the date you prepare the record or complete the transaction, whichever occurs later.

    Last modified: 05 Jan 2016QC 18707