Excise Tariff Amendment (Fuels) Act 2004 (66 of 2004)

Schedule 1   Amendment of the Excise Tariff Act 1921

Part 1   Amendments providing different excise duty rates for diesel and other fuels by reference to their sulphur content

4   After subsection 6G(2)

Insert:

(2A) Subsection (2) does not apply to an excisable blended petroleum product to which subsection (2B) applies.

(2B) Duty payable under this Act on an excisable blended petroleum product, being a blend of:

(a) goods that are classified to item 11 of the Schedule as diesel; and

(b) goods that are classified to item 2 of the Schedule as denatured ethanol for use in an internal combustion engine, as prescribed by by-law;

with or without other substances, is worked out using the formula:

[[(Volume of diesel + Volume of other substances) * Diesel rate] + [Volume of ethanol * Ethanol rate]] - Previusly paid duties

where:

diesel rate means:

(a) unless paragraph (b) applies - the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that exceeds 50 parts per million; and

(b) if the Collector is satisfied that the sulphur content of the excisable blended petroleum product does not exceed 50 parts per million - the rate of excise duty applicable to diesel (other than recycled product) classified to item 11 of the Schedule having a sulphur content that does not exceed 50 parts per million.

ethanol rate means the rate of excise duty applicable to denatured ethanol classified to item 2 of the Schedule as denatured ethanol for use in an internal combustion engine, as prescribed by by-law.

previously paid duties means the sum of:

(a) the excise duties (if any) that have already been paid on goods that are constituent elements of the excisable blended petroleum product and that are classified to item 2, 11, 12 or 15 of the Schedule; and

(b) to the extent that Customs duties have been paid on imported goods that are constituent elements of the excisable blended petroleum product and that would have been classified to item 11, 12 or 15 of the Schedule if produced in Australia - so much of the Customs duties paid on those imported goods as represents the application of the excise equivalent rate in relation to those imported goods;

worked out in accordance with subsection (4).

volume of diesel means the volume of diesel in the excisable blended petroleum product.

volume of ethanol means the volume of ethanol in the excisable blended petroleum product.

volume of other substances means the volume of substances (if any) in the excisable blended petroleum product that are not either diesel or ethanol.