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 that is manufactured, produced or stored in Australia is generally subject to excise.
SCPO and condensate are subject to excise when you produce them either:
- onshore (including within 3 nautical miles of the Australian coastline)
- offshore in the North West Shelf.
The first 4,767.3 megalitres (30 million barrels) of production is exempt from duty. Until you reach this threshold, you don't need to hold an excise licence.
Excise duty on stabilised crude petroleum oil and condensate
SCPO and condensate can attract 2 lots of excise duty, including:
- 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 when delivered for home consumption.
You won't have to pay the additional item 10 excise duty on SCPO and condensate if they're only used either:
- in the recovery, production, pipeline transportation or refining of condensate or stabilised crude oil
- as feedstock at a licensed refinery.