Commonwealth Numbered Regulations - Explanatory Statements
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CUSTOMS AMENDMENT REGULATION 2012 (NO. 5) (SLI NO 118 OF 2012)
EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 118
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs Amendment Regulation 2012 (No. 5)
Subsection 270(1) of the Customs Act 1901 (the Customs Act) provides, in part, that the Governor-General may make regulations not inconsistent with the Customs Act prescribing all matters which by the Customs Act are required or permitted to be prescribed, or as may be necessary or convenient to be prescribed, for giving effect to the Customs Act.
The purpose of the amending Regulation is to amend the Customs Regulations 1926 (the Principal Regulations) to ensure that the carbon price for non-transport use of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) is correctly applied through the fuel tax system, from 1 July 2012. This amendment will only be effective for one year, until 30 June 2013.
The amending Regulation amends the Principal Regulations to specify a reduction in the automatic remission of customs duty currently available on LPG and LNG for non-transport use from 1 July 2012 until 30 June 2013. When an automatic remission applies, customs duty that might otherwise be payable is reduced to nil. The amending Regulation reduces the full remission currently available on LPG and LNG imported for non-transport use to a partial remission for the 2012-13 financial year.
The reduced remission applies to LPG and LNG which is imported for non-transport use and for which the time for working out the rate of duty has occurred in the period 1 July 2012 to 30 June 2013.
The effect of the partial remissions is that importers of non-transport use LPG and LNG have to pay customs duty equal to the equivalent carbon price when the fuels are entered or delivered into home consumption. The amending Regulation also reinstates the full automatic remission on LPG and LNG for non-transport use from 1 July 2013, when non-transport use of LPG and LNG becomes directly subject to the carbon pricing mechanism.
A formula to calculate the amount of remission is prescribed for both LNG and LPG. The effect of the formula in relation to LNG is that an effective carbon price of 6.67 cents per kilogram is payable on the LNG. The effect of the formula in relation to LPG is that an effective carbon price of 3.68 cents per litre is payable on the LPG.
Each formula ensures that these fuels bear an equivalent carbon price via the fuel tax system.
As the amending Regulation is of a machinery nature, no consultation was undertaken in relation to the amending Regulation.
The amending Regulation commences on 1 July 2012.
Statement of Compatibility with Human Rights
(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)
Customs Amendment Regulation 2012 (No. 5)
This regulation amendment is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Regulation
The purpose of this regulation amendment is to amend the Customs Regulations 1926 (the Principal Regulations) to ensure that the carbon price for non-transport use of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) is correctly applied through the fuel tax system, from 1 July 2012. This amendment will only be effective for one year, until 30 June 2013.
Human Rights implications
This legislative instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Conclusion
This legislative instrument does not raise any human rights issues.
Minister for Home Affairs
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