Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 3 - Amendments to the Excise Act 1901
Overview
3.1 The extension of the existing Diesel Fuel Rebate Scheme (DFRS) requires certain specific amendments to be made to the Excise Act 1901 to include additional categories of rebate recipient. These are identified below.
3.2 This Bill will insert a new definition of diesel fuel in subsection4(1) to expand the category of fuel that is eligible for the rebate from diesel fuel to diesel and like fuels. [Clause 1]
3.3 This Bill will insert a new subsection 78A(1AB) , outlining the period for which the amended DFRS will operate. Specifically the new paragraph will ensure that a rebate under the DFRS is not payable:
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- for a purchase of diesel fuel on or after 1 July 2002; or
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- as a result of an application received more than 5 months after 1July 2002.
[Clause 2]
Additional categories of rebate applicants
3.4 This Bill will amend subsection 78A(1) to expand the list of applicants who are eligible to apply for a rebate under the DFRS. The amendments will insert additional categories into the list to include applicants who have purchased fuel and use it:
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- in rail transport in carrying on an enterprise; or
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- in marine use in carrying on an enterprise.
[Clause 3]
Additional categories of rebate payable
3.5 This Bill will amend subsection 78A(5) of the Excise Act 1901 to expand the list of rebate rates payable for the various categories of rebate applicants to include rates for the new categories. [Clause 5] The amount of rebate payable for diesel and like fuel use in the new categories is the excise paid on the fuel.
Distinction between forestry and primary production
3.6 This Bill will insert new subsections 78A(5AAA) and (5AAB) . The subsections will specifically provide for the Minister, in declaring the rates of rebate that will be payable, to be able to declare a rate payable for forestry which is different from the rate payable for primary production. [Clause 6]
3.7 The rate of rebate declared for forestry must always be 35/43 of the primary production rate. This provision ensures that the rebate amount for forestry is maintained at approximately the same proportion as the current rebate. [Clause 6]
3.8 This Bill will amend subsection 78A(7) to add definitions for marine use and rail transport. [Clause 8]
Entitlement under two categories
3.9 This Bill will insert new subsection 78A(5AC) to provide that if you are entitled to the rebate under more than one category, for example for both mining and marine use, you are entitled to the greater rate of rebate. [Clause 7]
3.10 This Bill will insert a definition of carrying on an enterprise into new subsection 78(8) . This definition is required because, for rail transport and marine use, a rebate applicant must have used fuel in carrying on an enterprise (see paragraph 3.4). [Clause 9]