EXCISE ACT 1901

PART VIIB - SPECIAL PROVISIONS RELATING TO FUEL  

SECTION 77H   BLENDING EXEMPTIONS  

77H(1)  
Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if:


(a) both:


(i) for each of the eligible goods and other substances, excise duty or a duty of Customs has been paid (unless the applicable duty when entered for home consumption was nil); and

(ii) apart from any denatured ethanol for use as fuel in an internal combustion engine, or biodiesel, the rate of each of those duties is the same; or


(b) the goods are covered by a determination in force under subsection 95-5(1) of the Fuel Tax Act 2006 .

77H(2)  


However, subsection (1) does not apply if any of the eligible goods or other substances on which excise duty or a duty of Customs has been paid are taxable fuel for which any entity has been entitled to a fuel tax credit under the Fuel Tax Act 2006 . Matters to be disregarded in determining whether same rate

77H(2AA)  


For the purposes of paragraph (1)(a), in determining whether excise duty or a duty of Customs has been paid at the same rate on all the eligible goods and the other substances (if any), disregard:


(a) any indexation of rates under section 6A of the Excise Tariff Act 1921 ; and


(b) any indexation of rates under section 19 of the Customs Tariff Act 1995 ; and


(c) any changes of rates under the Excise Tariff Act 1921 as a result of amendments of that Act by Part 1 of Schedule 1 to the Excise Tariff Amendment (Fuel Indexation) Act 2015 ; and


(d) the effect of sections 19AAB and 19AAC of the Customs Tariff Act 1995 .

Blends of a relevant fuel that is not subject to remission

77H(2A)  


Goods that are the product of the blending of amounts of one kind of relevant fuel are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if both of the following apply:


(a) none of the amounts of the relevant fuel are subject to a remission (either in full or in part) of excise duty or a duty of Customs;


(b) excise duty or a duty of Customs that is payable on the amounts of the relevant fuel has been paid.

Blends of LPG or liquefied natural gas that is subject to remission or not subject to duty

77H(2B)  


Goods that are the product of the blending of amounts of one kind of relevant fuel that is either LPG or liquefied natural gas are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if, for each amount in the blend, either of the following applies to the amount:


(a) the amount is subject to a remission (whether in full or in part) of excise duty or a duty of Customs on the grounds that the amount is not used, or intended for use, in an internal combustion engine in either a motor vehicle or a vessel;


(b) the amount is not subject to excise duty or a duty of Customs because the amount was manufactured, produced or imported before 1 December 2011.

Legislative instrument

77H(3)  
Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if the circumstances specified in an instrument under subsection (4) exist.

77H(4)  
The CEO may, by legislative instrument, specify circumstances for the purposes of subsection (3). Definitions

77H(5)  


In this section:

eligible goods
means goods covered by paragraph 10(a), (b), (c), (d), (da), (db), (dc), (e) or (f) of the Schedule to the Excise Tariff Act 1921 .

relevant fuel
means:


(a) gasoline for use in aircraft; or


(b) kerosene for use in aircraft; or


(c) LPG; or


(d) liquefied natural gas; or


(e) compressed natural gas that is classified to subitem 10.19C of the Schedule to the Excise Tariff Act 1921 .




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