Commonwealth Numbered Regulations - Explanatory Statements

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EXCISE AMENDMENT REGULATIONS 2002 (NO. 1) 2002 NO. 43

STATUTORY RULES 2002 No. 43

Issued by authority of the Minister for Revenue and Assistant Treasurer

Excise Act 1901

Excise Amendment Regulations 2002 (No. 1)

The Governor-General may make regulations under section 164 of the Excise Act 1901 (the Act).

These amending Regulations provide an exemption from the blending provisions for certain fuel additives by amending Excise Regulation 176 to list Dipetane, Wynn's EDT Enviro Diesel Treatment, Pro-Ma PT5 Plus Concentrated Petrol Treatment, Pro-Ma DT5 Plus Concentrated Diesel Treatment and Cougar Oils Turbojet Multifunctional Fuel Treatment.

Section 77J of the Act provides that the regulations may specify a particular blended petroleum product to be an exempt blended petroleum product. An exempt blended petroleum product will not attract the payment of excise after duty has been paid on the clean petroleum product with which the exempt product is blended.

Regulation 176 specifies the circumstances under which certain blended petroleum products are exempt. In particular it exempts clean petroleum products (that do not contain any marker) with prepared additives providing that they either enhance the performance of an internal combustion engine or assist in its maintenance (see paragraph 176(2)(i)). The types of products envisaged by the regulation were small-scale private use engine conditioners and treatments.

The Australian Taxation Office (ATO) was approached by representatives from industry who intend to market a fuel additive in bulk quantities which would subsequently attract excise due to the current legislation. Further research by the ATO identified 5 genuine performance additives in the marketplace that are sold in packages greater than 10 litres.

These products are genuine additives, that is, they cannot be used in an internal combustion engine on their own or they have a sale price that prices them out of the excise evasion market. The original intent of the exemption was to allow certain additives such as these to be mixed with duty paid fuel without triggering the blending provisions. These products fail the exemption only due to the size of their packaging.

An exemption from the blending provisions for certain additives was provided by amending Excise Regulation 176 to specifically list Dipetane, Wynn's EDT Enviro Diesel Treatment, ProMa PT5 Plus Concentrated Petrol Treatment, Pro-Ma DT5 Plus Concentrated Diesel Treatment and Cougar Oils Turbojet Multi-functional Fuel Treatment.

The amending Regulations will commence on gazettal.