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  • Excise on stabilised crude petroleum oil and condensate

    Stabilised crude oil and condensate manufactured, produced or stored in Australia is generally subject to excise. You need to understand your excise obligations if your business deals in stabilised crude oil and condensate.

    On this page:

    Stabilised crude petroleum oil

    Stabilised crude petroleum oil (SCPO) is crude oil with the volatile dissolved gases removed, making it safer to store and transport.

    Condensate

    Condensate is:

    • a form of hydrocarbon that is liquid at standard temperature and pressure
    • a product you obtain as part of the process of extracting crude oil or natural gas or both.

    Excise obligations

    SCPO and condensate are subject to excise when you produce them:

    • onshore
    • within three nautical miles of the Australian coastline, or
    • offshore in the North West Shelf.

    You need to hold an excise licence to produce SCPO and condensate from these areas or fields.

    For SCPO or condensate you produce at a particular field, no excise duty is payable for:

    • the first 4767.3 megalitres (30 million barrels)
    • a subsequent quantity of annual production.

    Once you exceed this initial threshold quantity for a field, future production may attract excise duty depending on the quantities you extract.

    Excise duty on stabilised crude petroleum oil and condensate

    SCPO and condensate can attract two lots of excise duty:

    • production excise duty applicable under items 20 and 21 of the Schedule to the Excise Tariff Act 1921 (the Schedule) after production thresholds are exceeded
    • excise duty under item 10 of the Schedule.

    You won't have to pay the additional item 10 excise duty on SCPO and condensate if they're only used:

    • in the recovery, production, pipeline transportation or refining of condensate or stabilised crude oil
    • as feedstock at a licensed refinery.

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    Last modified: 15 Sep 2020QC 63562