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EXCISE REGULATION 2015 (SLI NO 38 OF 2015)

EXPLANATORY STATEMENT

Select Legislative Instrument No. 38, 2015

Issued by authority of the Assistant Treasurer

Excise Act 1901

Excise Regulation 2015

Section 164 of the Excise Act 1901 (Act) provides that the Governor-General may make regulations prescribing all matters required or permitted to be prescribed or as may be necessary or convenient to be prescribed to give effect to the Act, or for the conduct of any business relating to excise.

The purpose of the Excise Regulation 2015 (Regulation) is to remake the Excise Regulations 1925.  The Legislative Instruments Act 2003 (LIA) provides that all legislative instruments, other than exempt instruments, progressively 'sunset' according to the timetable set out in the LIA.  Legislative instruments made before 1930 that were registered on the Federal Register of Legislative Instruments on 1 January 2005, such as the Excise Regulations 1925, sunset on 1 April 2015.  When a legislative instrument sunsets, it is automatically repealed under section 50 of the LIA.

The Regulation remakes the Excise Regulations 1925, and makes significant improvements to the existing provisions by repealing redundant provisions, simplifying language and restructuring provisions that have become difficult to navigate because of multiple amendments over the past 90 years.  Consistent with the Government's deregulation agenda, the key changes are:

•                 the circumstances where a refund, remission or rebate may be available have been simplified and included in a table in Schedule 1 to the Regulation to facilitate navigation and amendment;

•                 the default period for lodgement of an application for a refund for certain circumstances has been extended from 14 days to 12 months to reflect the Commissioner of Taxation's (CEO) administrative practice and to streamline application periods;

•                 all references to 'Collector' have been replaced with 'CEO' to ensure consistency throughout the Regulation;

•                 the requirement for the CEO to enter into a formal 'arrangement' with a person to set off a refund or rebate against a liability for excise duty has been removed to reduce compliance costs and to ensure consistency with set offs under other taxes;

•                 the provisions regarding duty-free shops have been restructured to make them easier to understand and navigate;

•                 redundant provisions regarding drawback of excise duty and aircraft stores have been removed; and

•                 provisions have been expressed in a way that is easier to understand in order to reduce compliance costs.

Further details of the Regulation are set out in the Attachment.

The Act does not specify any conditions that need to be met before the power to make the Regulation may be exercised.

The Regulation is a legislative instrument for the purposes of the LIA.

The exposure draft Regulation and accompanying Explanatory Statement were released for public consultation from 19 January 2015 to 13 February 2015.  The submissions received during the consultation process identified technical drafting issues with the exposure draft and a number of minor changes were made to the Regulation and the Explanatory Statement as a result of that feedback.  Submissions also raised a number of policy issues that are not considered to be within the scope of the sunsetting process.  These issues will be considered as part of other processes. 

Before this Regulation was made, its expected impact was assessed using the Preliminary Assessment tool approved by the Office of Best Practice Regulation (OBPR).  That assessment indicated that it would have minor or no impact on business, individuals and the economy.  This assessment has been confirmed by the OBPR (OBPR reference 18604).

The Regulation commenced on 1 April 2015.

ATTACHMENT

Details of the Excise Regulation 2015

All references are to the Excise Regulation 2015 (Regulation) unless otherwise stated. 

The Regulation makes improvements to the Excise Regulations 1925 by repealing redundant provisions and restructuring provisions to take account of modern instrument drafting techniques such as the greater use of headings and tables.  The Regulation also simplifies and updates language, for example, provisions in the Excise Regulations 1925 are referred to as 'regulations', however provisions in new principal instruments, such as the Regulation, are now referred to as 'sections'.  Principal instruments are also now referred to as 'Regulation' rather than 'Regulations'.  These restructuring and updating changes are not intended to change the current operation of the equivalent provisions in the Excise Regulations 1925.  These types of changes are generally not specifically identified in this Attachment. 

However, where the Regulation makes other changes that require further explanation, these are identified and explained in this Attachment. 

The Regulation includes transitional provisions to ensure that actions such as the making of applications and the giving of notices and permissions made under the Excise Regulations 1925 continue to apply as if they had been done under the Regulation. 

Finding tables for the structure and provisions are also included at the end of this Attachment to assist in identifying which provisions in the Regulation correspond to provisions in the Excise Regulations 1925, and vice versa (where relevant). 

Part 1 - Preliminary

Division 1 - Preliminary

Section 1 - Name of Regulation

This section provides that the title of the Regulation is the Excise Regulation 2015.

Section 2 - Commencement

This section provides that the Regulation commences on 1 April 2015.

Section 3 - Authority

This section provides that the Regulation is made under the Excise Act 1901.

Section 4 - Schedules

This section provides that each instrument that is specified in a Schedule to the Regulation is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Regulation has effect according to its terms.

Division 2, section 5 - Simplified outline of this instrument

This section provides a simplified outline of the Excise Regulation 2015.

Division 3, section 6 - Definitions

This section contains defined terms used in the Regulation.  A number of terms used in the Regulation (but not defined in section 6) are defined in the Excise Act 1901.

Part 2 - Remissions, rebates and refunds of excise duty

Division 1, section 7 - Simplified outline of Part 2

This section provides a simplified outline of Part 2, Remissions, rebates and refunds of excise duty.

Division 2 - Circumstances for remission, rebate or refund

Section 8 - Circumstance for remission, rebate or refund of excise duty

This section provides that Schedule 1 prescribes the circumstances in which a remission, rebate or refund of excise duty may be made by the CEO.  An application for a remission, rebate or refund may be required in some circumstances.

Schedule 1 restructures and simplifies the circumstances for remissions, rebates and refunds that existed in Part III and Schedule 1 of the Excise Regulations 1925, which were cumbersome and difficult to navigate.  See the section concerning Schedule 1 for further explanation.

Section 9 - Remission of excise duty - rounding down duty paid in cash

This section provides that if an amount of excise duty is paid in cash and is not in a multiple of five cents, the CEO may remit the number of cents in excess of the next lower multiple of five cents, that is, the amount of excise duty payable is rounded down to the nearest five cents. 

Division 3 - Application for remission, rebate or refund

Section 10 - Application for remission, rebate or refund of excise duty

This section provides that an application for a remission, rebate or refund for one of the relevant prescribed circumstances must be in the approved form, state the nature and particulars of the claim, and be given to the CEO.

The 'approved form' is the form approved in writing by the CEO, pursuant to the requirements of Division 388 of Schedule 1 to the Taxation Administration Act 1953.

Regulation 52(1)(a) of the Excise Regulations 1925 required an application for a remission, rebate or refund to be in writing and signed by the applicant.  These specific requirements have been replaced with the 'approved form' requirement in paragraph 10(1)(a), which allows the CEO to specify the necessary information, and provides flexibility such as the use of electronic forms.

For the purpose of enabling the CEO to verify that a circumstance for remission, rebate or refund applies or applied to an application, the CEO may require the applicant to provide records or to give further information.  The applicant must comply with this requirement.

Note: If the goods mentioned in the relevant prescribed circumstances have been totally lost or destroyed or have otherwise ceased to exist, remission of excise duty may be made without an application being made (see Schedule 1, subclause 1(1), paragraph (b)).  Additional circumstances where a remission, rebate or refund may be made without an application are listed in the table in Schedule 1, clause 2.

Section 11 - Period for making an application for refund or rebate of excise duty

This section provides that an application for a refund or rebate under section 10 must be made within the period specified.  Where there is no time limit specified for a particular circumstance, an indefinite time period applies.  Table 1.1 summarises the periods and notes the equivalent circumstance in the Excise Regulations 1925.

Table 1.1 - Time limit to apply for a refund or rebate of excise duty

Section 11, item 1 of the table

Item 1 of the table in section 11 provides that an application must be made within 12 months after the day when the excise duty is paid, for refund circumstances under items 1, 2, 3 and 5 of the table in clause 1 of Schedule 1.  

Under the equivalent provision in paragraph 53(1)(b) of the Excise Regulations 1925, an application was required for these circumstances within 14 days after the date on which the excise duty was paid, however the CEO was able to extend the period to 12 months if it was equitable to do so. 

The short time frame of 14 days to make an application meant that it was almost always equitable to extend the period, so the circumstances covered by the remade paragraph 53(1)(b) (item 1 of the table in section 11) provide that the period for giving an application is 12 months after the day when the excise duty was paid.

Division 4 - Amount of remission, rebate or refund

Section 12 - Amount of remission, rebate or refund of excise duty

This section provides the amount of remission, rebate or refund of excise duty that may be made in certain circumstances prescribed in subclause 1(1) of Schedule 1.  Where there is no amount specified for a particular circumstance, the amount of the remission, rebate or refund is the relevant amount of duty paid, over-paid or payable on the goods for the particular circumstance.  Table 1.2 below summarises the amount and equivalent provision in the Excise Regulations 1925.

Table 1.2 - Amount of remission, rebate or refund

Subsection 12(3) - Rebate or refund set off against liability for excise duty

This subsection provides that the amount of a rebate or refund of excise duty that is payable to a person may be set off against the whole, or part, of that person's liability for excise duty, and if the amount is set off, it is taken to have been paid to the person.

This subsection remakes regulation 58 of the Excise Regulations 1925.  Regulation 58 of the Excise Regulations 1925 required the CEO to enter into an 'arrangement' with a person for set off, which increased compliance costs.  Subsection 12(3) provides the CEO with the power to set off, however the CEO is not required to enter into an arrangement to do so and is able to automatically set off debits and credits of excise duty.  This is consistent with the operation of other taxes such as income tax and GST.

Part 3 - Drawback of excise duty

Division 1, section 13 - Simplified outline of Part 3

This section provides a simplified outline of Part 3, Drawback of excise duty.

Division 2 - Drawback of excise duty

Section 14 - Drawback of excise duty on goods

This section provides that drawback of excise duty may be paid in accordance with Part 3, on the exportation of excisable goods for which excise duty has been paid.

The CEO may approve payment of drawback for the goods. However, if the CEO decides not to approve the payment of drawback, the CEO must give the person claiming the drawback a notice within 30 days after the decision, setting out the decision and advising the person they may object in the manner set out in Part IVC of the Taxation Administration Act 1953.

Section 15 - When drawback of excise duty is not payable

Drawback of excise duty is not payable on stabilised crude petroleum oil, condensate or liquid petroleum obtained from naturally occurring petroleum gas (subsection 15(1)). 

Drawback of excise duty is also not payable on the exportation of goods if (subsection 15(2)):

•                 the excise duty paid on the goods has been refunded; or

•                 after exportation, the goods are re-landed in Australia; or

•                 the goods are relevant fuel (defined in subclause 1(2) of Schedule 1).

Sections 14 and 15 remake, in part, regulations 76 and 78 of the Excise Regulations 1925.  The exclusions now listed in subsection 15(1) do not include coal, as coal is no longer excisable.  This reflects that coal is not included in the Schedule to the Excise Tariff Act 1921 and the Excise Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006 repealed the Coal Excise Act 1949.

Regulation 77 of the Excise Regulations 1925 related to drawback of excise duty on 'specified goods' as defined.  This regulation related to excisable goods that were used in the manufacture of particular goods or other particular circumstances, and the goods were subsequently exported.  These specific circumstances no longer apply and the regulation has not been remade in the Regulation. 

Regulations 247 and 248 of the Excise Regulations 1925 related to review of decisions regarding drawback.  These provisions have not been remade as they are unnecessary.  Review rights are provided for in section 162C of the Excise Act 1901.

Division 3 - Conditions relating to drawback

Section 16 - Conditions relating to drawback of excise duty - general

This section provides the conditions that must be met before drawback of excise duty is payable.  The conditions that were listed in regulation 78A of the Excise Regulations 1925 have been remade as items of the table in subsection 16(1).

The conditions are as follows:

•                 before exportation, the owner of the goods gives to the CEO a notice, in the approved form, of the owner's intention to claim drawback on the exportation; and the goods are available at all reasonable times for examination by an officer; and

•                 records are available at all reasonable times for examination by an officer that show that excise duty has been paid on the goods and relevant details of the receipt, use and disposal of the goods by the owner; and

•                 a claim for drawback of excise duty paid on the goods is in the approved form and is given by the owner of the goods to the CEO after the exportation, but no later than 12 months after the day on which the goods are exported; and

•                 the claim for drawback sets out the amount of the claim, a statement that the goods have not been, and are not intended to be, re-landed in Australia; and

•                 the amount of the drawback is at least $50, or the amount is claimed at the same time as another claim for drawback made by the owner of the goods, and together the claims are at least $50.

The CEO may exempt in writing the owner of the goods from complying with the first condition above, or approve payment even though a notice of intention was not given to the CEO (subsection 16(2)).

Section 17 - Additional conditions relating to drawback of excise duty - examining, packaging, securing and marking goods

This section provides that if a notice of intention to claim drawback has been given to the CEO, the CEO may, by notice in writing, require the owner to deal with the goods as directed by the CEO.

Section 17 remakes regulation 78C of the Excise Regulations 1925.  Regulation 78C contained specific provisions regarding the assistance to be given to officers and the examination of goods, which were prescriptive and unnecessary.  These specific requirements have been replaced with the more general requirement that the owner deal with the goods as directed by the CEO. This simplifies the regulation and provides greater flexibility for the CEO to specify requirements in relation to the goods (if necessary).

Section 18 - Assistance to be given to officers

This section provides that a person who intends to claim drawback on the exportation of goods must, by all reasonable means, facilitate the examination or re-examination of the goods by an officer, the taking of a correct account of the goods by an officer, and the supervision, by an officer, of the packing of the goods.

Part 4 - Tobacco, fuel and delivery of certain goods without entry

Division 1, section 19 - Simplified outline of Part 4

This section provides a simplified outline of Part 4, Tobacco, fuel and delivery of certain goods without entry.

Division 2 - Matters relating to tobacco

Section 20 - Delivery of Australian tobacco leaf

This section provides that Australian tobacco leaf may be delivered:

•                 for a purpose approved by the CEO; or

•                 if it is to be destroyed, and the CEO has approved the delivery. 

Examples of purposes that may be approved by the CEO include medical, scientific, horticultural and agricultural purposes.

This section is made for the purposes of section 164 of the Excise Act 1901 and relates to the conduct of any business relating to excise.  Section 20 remakes regulation 33 of the Excise Regulations 1925.

Section 21 - Amount of duty to determine the amount of a penalty

This section sets out how to work out the amount of duty to be used to determine the amount of a penalty relating to a quantity of tobacco leaf. 

The section sets out the method for determining the amount of the penalty for paragraph (b) in subsections 28(1), 30(1), 31(1), 33(1), 35(1), 39K(2) and (3), 39M(2), 44(4) and (8), 117C(1), 117D(1), 117F(1) and 117H(1) of the Excise Act 1901. 

Division 3 - Matters relating to fuel

Section 22 - Sales or supplies of liquefied petroleum gas (LPG) to which LPG remission applies - contents of notice

Under subsection 77L(1) of the Excise Act 1901, a person (the licensee) who holds a manufacturer licence or a storage licence must give a notice to a person if the licensee sells or supplies LPG to the person, and an LPG remission applies to the LPG at the time of the sale or supply. 

Under subsection 77L(2) of the Excise Act 1901, a person (the supplier) must give notice to a person if the supplier sells or supplies LPG to the person, an LPG remission applies to the LPG at the time of the sale or supply, and when the supplier was supplied with the LPG the supplier was given a notice under section 77L of the Excise Act 1901.

Section 22 provides that the notice must include the words:

            'Not to be used, or supplied, for transport use.  Penalties apply.'

If the supplier is required to provide a tax invoice for the sale or supply of LPG to another person under A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the words to be included should appear on the first page of the tax invoice.

Section 22 remakes regulation 49AAA of the Excise Regulations 1925, which contained a provision specifying that the words must be included on the first page of the tax invoice provided by the supplier.  This level of detail is considered prescriptive and unnecessary and has not been remade in the Regulation.  However, the words prescribed (which remain unchanged from the Excise Regulations 1925) should continue to appear on the first page of a tax invoice.

Section 23 - Sales or supplies of LPG to which remission applies - circumstances when notice is not required

This section provides that a notice under subsections 77L(1) and (2) of the Excise Act 1901 is not required if the LPG is being supplied in, or into, a container that contains 210 kilograms or less of LPG, or the LPG is being supplied to residential premises (within the meaning of the GST Act) and is not being supplied, in part or in full, for the purpose of carrying on an enterprise (within the meaning of the GST Act).

Section 24 - Conversion of measurements of LPG and compressed natural gas

This section prescribes, for the purposes of determining a person's liability to pay duty for LPG, a conversion rate of 1 kilogram of LPG to 1.885 litres of LPG where a quantity of LPG is entered for home consumption in kilograms, and is not measured using volumetric measurement equipment to calculate the amount of duty.  If a person's first dealing with LPG in a financial year uses either kilograms or litres, the CEO is not required to accept the other unit of measurement if the person deals with another quantity in that financial year.  However the CEO may give the person permission to use the other unit of measurement.

This section also prescribes, for the purposes of determining a person's liability to pay duty on compressed natural gas (CNG), a conversion rate of 1 megajoule of CNG to 0.01893 kilograms of CNG.

These conversion rates are the same as were prescribed in regulation 49AAC of the Excise Regulations 1925.

Division 4 - Delivery of stabilised crude petroleum oil and condensate without entry

Section 25 - Delivery of stabilised crude petroleum oil and condensate for home consumption without entry

Under subparagraph 61C(1)(b)(ii) of the Excise Act 1901, a person may apply to the CEO for permission to deliver goods for home consumption without entering them for that purpose in respect of a calendar month, if the goods to be delivered for home consumption are of a kind prescribed by the regulations.

This section prescribes, for subparagraph 61C(1)(b)(ii) of the Excise Act 1901, stabilised crude petroleum oil to which item 20 of the Schedule to the Excise Tariff Act 1921 applies, and condensate to which item 21 of the Schedule to the Excise Tariff Act 1921 applies, and the conditions for those goods.

Section 25 remakes regulation 15 of the Excise Regulations 1925.  Liquefied natural gas mentioned in regulation 52C and paragraph (a) in item 8 of Schedule 1 to the Excise Regulations 1925, and LPG mentioned in regulation 52D and paragraph (a) in item 9 of Schedule 1 were also prescribed in regulation 15 of the Excise Regulations 1925.  However these paragraphs are now redundant as regulations 52C and 52D of the Excise Regulations 1925 only applied to liquefied natural gas and LPG that was delivered for home consumption between 1 July 2012 and 30 June 2013.

Part 5 - Duty free shops

Division 1, section 26 - Simplified outline of Part 5

This section provides a simplified outline of Part 5, Duty free shops.

Division 2 - Permission for outwards duty free shops

Section 27 - Circumstances in which permission may be given - application

This section provides that the CEO may give permission in relation to an outwards duty free shop under subsection 61D(2) of the Excise Act 1901 if an application for permission is made in the approved form.

An outwards duty free shop is defined in subsection 61D(1) of the Excise Act 1901 as a warehouse in respect of which the relevant warehouse licence authorises the sale in the warehouse of goods to relevant travellers.  'Relevant traveller' for the purposes of an outwards duty free shop is also defined in subsection 61D(1) of the Excise Act 1901. 

An outwards duty free shop may be an 'off-airport duty free shop' or an 'on-airport duty free shop'.  Each of these terms is defined in section 6.

The 'approved form' is the form approved in writing by the CEO, pursuant to the requirements of Division 388 of Schedule 1 to the Taxation Administration Act 1953.

Section 28 - Matters to be taken into account - off-airport duty free shop

This section provides that when deciding whether to give permission in relation to an off-airport duty free shop, the CEO must take into account whether the proprietor of the shop to which the permission would relate is likely to be able to comply with the conditions set out in sections 37 and 38.  Sections 37 and 38 relate to giving information to the CEO and the examination of packages.

Section 29 - Period of effect of permission

This section provides that if permission for an outwards duty free shop is given, the permission has effect starting on the day when the permission is given and for the period specified in the permission.

Section 30 - Revocation of permission

This section provides the grounds on which a permission in relation to an outwards duty free shop may be revoked under subsection 61D(13) of the Excise Act 1901.

The grounds are:

•                 that a condition to which the permission is subject and that must be complied with by the proprietor of the shop, or an employee of agent of the proprietor has not been complied with; or

•                 that a revocation of the permission is necessary for the protection of the revenue; or

•                 that a revocation of the permission is necessary for ensuring compliance with the Excise Acts (as defined in the Excise Act 1901).

Division 3 - Conditions for outwards duty free shops

Section 31 - Preliminary

This section provides that Division 3 sets out conditions to which a permission for an outwards duty free shop is subject. 

In Division 3, 'the shop' refers to the outwards duty free shop to which the permission relates, and 'goods' refer to goods to which the permission relates.

Section 32 - Arrangements and proof of travel and export

This section sets out conditions for the proprietor for outwards duty free shops relating to arrangements for the sale of goods and proof of travel and export.

The proprietor of the shop must not sell goods to a person who is in the shop unless:

•                 the person is a relevant traveller; and

•                 the person has shown the proprietor a ticket, or other document approved by the CEO showing that the relevant traveller is entitled to make the international flight or voyage.

The proprietor of the shop must not enter into an agreement to sell goods to a person who is not in the shop unless:

•                 the person is a relevant traveller; and

•                 the person has given the proprietor, orally or in writing, information on the intended exportation of the goods by the person required by paragraph 36(1)(b) (relating to off-airport duty free shops) or paragraph 45(1)(b) (relating to on-airport duty free shops); and

•                 the agreement is subject to the condition that the sale takes place in the shop.

Where an agreement is made to sell goods to a person who is not in the shop, the proprietor must not deliver goods to the relevant traveller unless they have shown the proprietor a ticket or other document approved by the CEO showing they are entitled to make the international flight or voyage, that confirms the particulars of the intended exportation of the goods as given to the proprietor as set out above.

The proprietor of the shop, or an employee or agent of the proprietor, must also not enter into an arrangement with a relevant traveller under which goods delivered to the relevant traveller are to:

•                 be transferred to the proprietor, or an employee or agent of the proprietor, upon return of the relevant traveller to Australia; or

•                 remain with the proprietor or an employee or agent of the proprietor.

Section 33 - Recognition of obligations

This section provides that a relevant traveller to whom goods are sold in the shop must, at or before the time of delivery of the goods, sign a document in recognition (in the approved form) of the traveller's obligations concerning the export of the goods.

Division 4 - Additional conditions for off-airport duty free shops

Subdivision A, section 34 - Preliminary

This section provides that Division 4 sets out additional conditions to which a permission in relation to an off-airport duty free shop is subject.

Subdivision B - Conditions for proprietor of shop

In Subdivision B, 'the shop' refers to the outwards duty free shop to which the permission relates, and 'goods' refer to goods to which the permission relates.

Section 35 - Delivery of goods

This section provides that the proprietor of the shop must ensure that goods are not delivered from the shop to a relevant traveller earlier than 60 days before the traveller's flight or voyage is to depart.

The proprietor must ensure that the goods are delivered from the shop to the relevant traveller in a package:

•                 that is sealed so that goods cannot be removed; and

•                 if the package is to be carried into the cabin of the aircraft or ship, it is transparent enough for the goods to be easily identified without the seal being broken.

Section 36 - Invoice for goods to be delivered

This section provides that at the time of sale of the goods, the proprietor of the shop must prepare a triplicate (sequentially numbered) invoice that cannot be tampered with, specifying:

•                 the name and address of the relevant traveller;

•                 the following particulars about the flight or voyage on which the goods are intended to be exported:

-               the date of departure;

-               the airport or wharf of departure;

-               the flight number;

-               the name and number of the ship;

-               the ticket number (or number of document approved by the CEO for paragraph 61D(7)(b) of the Act); and

•                 a precise description of the goods including:

-               the quantity, in figures, of each item of the goods;

-               the total number of the items mentioned in the invoice;

-               the sale amount, in figures, of each item or quantity of items;

-               the total sale amount, in figures, of those items and quantities of items.

The proprietor must place one copy of the invoice in the package with the goods, one copy in a waterproof envelope and attach the envelope to the outside of the package so that it may be read without opening, and retain one copy for the proprietor's records.

Section 37 - Giving information to the CEO

This section provides that where the CEO requires, the proprietor of the shop must give to the CEO the following information about a sale of goods from the shop to a relevant traveller:

•                 the name of the shop;

•                 the name of the relevant traveller;

•                 the date and time of departure of the flight or voyage;

•                 the number or designation of the flight;

•                 the name or designation of the ship or voyage;

•                 a full description of any item of the goods where the item has a sale amount of at least $500;

•                 the number of items included in the sale;

•                 the number of packages for the sale;

•                 the number of packages for the sale that are and are not cabin luggage; and

•                 the invoice numbers relating to the sale.

The proprietor must give the information to the CEO before the date of departure and in the manner approved by the CEO.

Section 38 - Packages to be examined

This section provides that where goods are purchased at an off-airport duty free shop, the proprietor must, at the point of surrender at the aircraft or ship, or within the relevant departure area, check the package to ensure that it has not been tampered with.

If the package has not been tampered with, the proprietor must remove the copy of the invoice attached to the outside of the package.

If the package has been tampered with, the proprietor must give the CEO a notice specifying the name of the relevant traveller, the date and time of departure and the number, name or designation of the flight or voyage, and the nature of the tampering.

Section 39 - Giving a return and paying excise duty

This section provides that the proprietor of the shop must lodge a return with the CEO, within 21 working days after the end of a month, specifying:

•                 the name of the shop;

•                 the details of the invoices prepared during the period where a copy was not removed in accordance with section 38 (about examination of packages of goods at the cabin of an aircraft or ship);

•                 the details of the invoices prepared during the period where a copy was removed in accordance with section 38 but in respect of which an electronic record has not been provided in accordance with section 46 (about proof of export of goods from off-airport duty free shops); and

•                 the amount of excise duty payable for the goods to which the invoice relates.

The proprietor must pay the CEO the amount of excise duty payable, as specified in the return.

Subdivision C - Conditions for relevant traveller

Section 40 - Application of Subdivision C

Subdivision C applies to a relevant traveller to whom goods were sold.  In Subdivision C, 'relevant traveller' refers to the relevant traveller to whom goods were sold, 'the shop' refers to the off-airport duty free shop where the goods were sold to the relevant traveller, and 'proprietor of the shop' refers to the proprietor of the shop who sold the goods to the relevant traveller.

Section 41 - Package not to be interfered with

This section provides that the relevant traveller must not remove, alter or otherwise interfere with an invoice attached to the outside of the package which contains the goods.  The relevant traveller must not, before exporting the goods, break the seal on the package or tamper with the integrity of the package.

Section 42 - Packages to be examined

This section provides that where the relevant traveller surrenders a package for carriage otherwise than in the cabin of an aircraft or ship, or takes a package into the departure area, the relevant traveller must present the sealed package and allow the proprietor to examine the package and remove the invoice.

Section 43 - If goods are not exported as intended

This section provides that if the relevant traveller does not export the goods on the relevant flight or voyage, they must notify the proprietor by noon of the following working day after the original departure date.

If the relevant traveller intends to export the goods within 48 hours after the original departure of the flight or ship, the relevant traveller must notify the proprietor of the intended departure.  If the relevant traveller notifies the proprietor of the intended exportation and the goods are not exported, they must notify the proprietor and return the goods to the shop on the next working day after the altered departure day.

If the relevant traveller does not intend to export the goods within 48 hours after the original departure, the relevant traveller must notify the proprietor and return the goods to the shop on the second working day after the original departure date.

Division 5 - Additional conditions for on-airport duty free shops

Section 44 - Preliminary

This section provides that Division 5 sets out additional conditions to which an on-airport duty free shop permission is subject.

In Division 5, 'the shop' refers to the on-airport duty free shop to which the permission relates and 'goods' refer to the goods sold at the shop.

Section 45 - Invoice for goods

This section provides that at the time of sale of goods to a relevant traveller, the proprietor of the shop must prepare a duplicate (sequentially numbered) invoice that cannot be tampered with, specifying if the relevant traveller:

•                 is a pilot or member of the crew:

-               the name and address of the relevant traveller;

-               the date of departure of the flight;

-               the airport of departure;

-               the flight number or designation;

-               the quantity of each item of the goods;

-               the sale amount of each item or quantity of items; and

-               the total sale amount of those items and quantities of items.

•                 is not a pilot or member of the crew:

-               the date of departure of the flight;

-               the flight number or designation;

-               the quantity of each item of the goods;

-               the sale amount of each item or quantity of items; and

-               the total sale amount of those items and quantities of items.

The proprietor must place one copy of the invoice in the package with the goods and retain one copy for their records.

Division 6 - Other matters relating to outwards duty free shops

Section 46 - Proof of export of goods - off-airport duty free shops

This section prescribes, for the purposes of paragraph 61D(10)(b) of the Excise Act 1901 the way in which a proprietor will provide the CEO with proof of the export of goods delivered to a relevant traveller in accordance with the permission.

The proprietor is to provide an electronic record to the CEO of the invoice number of each invoice for which a copy was removed from an untampered package, within 10 working days after the date of departure of the relevant traveller.

Section 47 - Sealed bag arrangements for LAG products - off-airport duty free shops

This section provides for 'sealed bag arrangements' for liquids, aerosols, gels, creams and pastes (LAG products) at an off-airport duty free shop, and ensures that where these types of products are purchased at an off-airport duty free shop and dealt with according to the requirements for packaging under the sealed bag arrangements and  Subdivision 4.1.1A of the Aviation Transport Security Regulations 2005, the delivery and export of the LAG product is taken to comply with the proof of travel, export, delivery and packaging requirements under subsections 32(1) to (3) and Subdivisions B and C of Division 4.

Section 47 remakes regulation 79A of the Excise Regulations 1925.  The point-in-time and 'interim' references in regulation 79A of the Excise Regulations 1925 have not been remade in section 47 as these arrangements apply going forward and are no longer interim.

Division 7 - Inwards duty free shops

Subdivision A - Permission for inwards duty free shops

Section 48 - Circumstances in which permission may be given - application

This section provides that the CEO may give permission in relation to an inwards duty free shop if an application is made in the approved form, the applicant is the holder of a warehouse licence authorising the sale of airport shop goods at the inwards duty free shop, and the applicant has been granted a lease or licence and an authority to operate an inwards duty free shop on land within the airport.

Section 48 remakes subregulation 81(5) of the Excise Regulations 1925.  The references in subregulation 81(5) of the Excise Regulations 1925 to a lease or licence and an authority to trade under the Airports (Business Concessions) Act 1959 have been removed from section 48 as the Airports (Business Concessions) Act 1959 has been repealed.  Similar rights are now granted under the Airports Act 1996, and section 48 refers to a lease or licence and an authority to operate an inwards duty free shop on land within the airport, to ensure that future updating is not required if the name of the Airports Act 1996 changes.

Section 49 - Period of effect of permission

This section provides that if permission for an inwards duty free shop is given, the permission has effect starting on the day when the permission is given and for the period specified in the permission.

Section 50 - Revocation of permission

This section provides the grounds on which a permission in relation to an inwards duty free shop may be revoked under subsection 61E(11) of the Excise Act 1901.

The grounds are as follows:

•                 that a condition to which the permission is subject and that must be complied with by the proprietor of the shop, or an employee or agent of the proprietor, has not been complied with; or

•                 that a revocation of the permission is necessary for the protection of the revenue; or

•                 that a revocation of the permission is necessary for ensuring compliance with the Excise Acts (as defined in the Excise Act 1901); or

•                 that a lease, licence or authority to operate in relation to the shop has expired or been cancelled.

Subdivision B - Conditions for inwards duty free shops

Section 51 - Preliminary

This section provides that Subdivision B sets out conditions to which an inwards duty free shop permission is subject. 

In Subdivision B, 'the shop' refers to the inwards duty free shop to which the permission relates, and 'goods' refer to goods sold at the shop.

An inwards duty free shop is defined in subsection 61E(1) of the Excise Act 1901 as a warehouse in respect of which the relevant warehouse licence authorises the sale in the warehouse of airport shop goods to relevant travellers.  'Relevant traveller' for the purposes of an inwards duty free shop is also defined in subsection 61E(1) of the Excise Act 1901. 

Section 52 - Arrangements and proof of travel

This section sets out conditions for the proprietor for inwards duty free shops relating to arrangements and proof of travel.

The proprietor of the shop must not sell goods to a person who is in the shop unless:

•                 the person is a relevant traveller; and

•                 the person has shown the proprietor a ticket, or other document that shows that the person has arrived in Australia on an international flight.

The proprietor of the shop must not enter into an agreement to sell goods to a person who is not in the shop unless:

•                 the person is, or intends to be, a relevant traveller; and

•                 the person has given the proprietor, orally or in writing, the date and flight number or other designation of the person's arrival or intended arrival in Australia;

•                 the proprietor has informed the person of:

-               the amounts of alcoholic beverages and tobacco products that may be entered for home consumption by a relevant traveller free of excise duty; and

-               the conditions with which, for the purposes of the Customs Acts (within the meaning of the Customs Act 1901) a relevant traveller must comply  in relation to the purchase of goods at the shop; and

•                 the agreement is subject to the condition that the sale takes place in the shop.

Where an agreement is made to sell goods to a person who is not in the shop, the proprietor must not deliver goods to the relevant traveller unless they have shown the proprietor a ticket or other document that confirms the date and flight number or other designation of the person's arrival in Australia.

The proprietor of the shop, or an employee or agent of the proprietor, must not enter into an arrangement with a relevant traveller under which goods delivered to the relevant traveller are:

•                 to be transferred to the proprietor, or an employee or agent of the proprietor, after the relevant traveller has cleared customs; or

•                 to remain with the proprietor or an employee or agent of the proprietor.

Section 53 - Signs to be displayed

This section provides that the proprietor of the shop must display in the shop signs in the approved form, that clearly state:

•                 the conditions with which, for the purposes of the Excise Acts, a relevant traveller must comply  in relation to the purchase of goods at the shop; and

•                 if alcoholic beverages or tobacco products are for sale in the shop, the amounts of alcoholic beverages and tobacco products that may be entered for home consumption by a relevant traveller free of excise duty.

Sections 52 and 53 remake regulation 81 of the Excise Regulations 1925.  The references in regulation 81 of the Excise Regulations 1925 to 'alcoholic  liquor' have been replaced with 'alcoholic beverages' in sections 52 and 53, as this aligns with the term used in the passenger concessions.

Part 6 - Stores, securities and samples

Division 1, section 54 - Simplified outline of Part 6

This section provides a simplified outline of Part 6, Stores, securities and samples.

Division 2 - Stores, securities and samples

Section 55 - Ship's stores liable to excise duty

Under section 160A of the Excise Act 1901, ship's stores are not liable to excise duty, except as provided for by the regulations.

This section provides that the ship's stores liable to excise duty are those consisting of:

•                 alcoholic beverages (other than beer) sold to a passenger or member of the crew or ship, other than by the glass or nip;

•                 cigars sold to a passenger or to a member of a crew of a ship, other than by the individual packet, tin or box containing 25 or less cigars;

•                 cigarettes sold to a passenger or to a member of the crew of a ship, other than by the individual packet or tin containing 50 or less cigarettes;

•                 tobacco products (other than cigars or cigarettes mentioned above) sold to a passenger or to a member of the crew of a ship in a quantity that exceeds 120 grams in weight; or

•                 alcoholic beverages (including beer), cigarettes, cigars or other tobacco products sold to a person other than a passenger or a member of the crew of a ship.

Subsection 55(2) remakes subregulation 186(1) of the Excise Regulations 1925.  Paragraph 186(1)(c) of the Excise Regulations 1925 provided that ship's stores consisting of cigarettes sold to a passenger or to a member of the crew are liable to excise duty unless sold by a packet containing not more than 25 cigarettes or a tin containing not more than 50 cigarettes. 

Paragraph 55(2)(c) remakes paragraph 186(1)(c) of the Excise Regulations 1925, and simplifies the requirement for excise duty liability for cigarettes. Under this change cigarettes that are sold to a passenger or to a member of the crew of a ship, other than by a packet or tin containing 50 or less cigarettes are duty free.  This requirement aligns with the passenger concessions.

Aircraft's stores

Under section 160A of the Excise Act 1901, aircraft's stores are not liable to excise duty, except as provided for by the regulations.  Subregulation 186(2) of the Excise Regulations 1925 provided that aircraft's stores, other than a number of listed exceptions, are liable to excise duty.

However, the listed exceptions covered all types of aircraft's stores that could be subject to excise duty, including a number of redundant references, with the effect that aircraft's stores (as defined in the Excise Act 1901) were not liable to excise duty under the Excise Regulations 1925.  Subregulation 186(2) of the Excise Regulations 1925 has therefore not been remade in the Regulation. 

Section 56 - Judgment in legal proceedings about a security

This section applies to a person who has given the CEO a security in relation to the payment of excise duty under the Excise Act 1901, and the CEO obtains judgment against the person in legal proceedings about the security.

The CEO may retain as much of the security as is needed to satisfy the judgment and costs.  Any security retained becomes the property of the Commonwealth.

If the security does not satisfy the judgment and costs, the CEO may enforce the judgment to obtain payment of the balance remaining due under the judgment.

If the CEO is entitled to retain a security to satisfy the judgment and costs, and the security is not in cash, the CEO may dispose of the security:

•                 by auction or private sale; or

•                 in another manner that the CEO considers is most favourable to the person.

Following the disposal of a non-cash security, the CEO must sign a certificate setting out the security disposed of and the net proceeds of the disposal.  This is taken to be proof of the disposal and the amount of the net proceeds.

If the security expires, or is cancelled, discharged, released or satisfied, the person is entitled to as much of the security as has not been retained by the CEO under section 56.

Section 56 remakes regulation 210 of the Excise Regulations 1925.  Under section 16 of the Excise Act 1901, the CEO has the right to require and take securities for compliance with the Excise Acts and generally for protection of the revenue.  Regulation 210 of the Excise Regulations 1925 contained unnecessary and prescriptive provisions about the types of security that may be taken by the CEO, and outdated language.  In section 56 of the Regulation, this language has been modernised and the redundant parts have been removed.

Section 57 - Manner of taking samples

Section 106 of the Excise Act 1901 provides that samples of certain excisable goods may be taken by the CEO in the manner prescribed.

This section provides that the manner in which a sample is to be taken by an officer is as follows:

•                 the officer must, in the presence of the person (or an agent or employee of the person) from whom the sample is taken:

-               divide the sample into 3 equal parts;

-               label or mark, and securely seal, each part; and

•                 give one part to the person (or the person's agent or employee); and

•                 deliver another part (the analyst's part) to an analyst approved by the CEO; and

•                 retain the third part for any further examination.

The analyst's part may be delivered to the analyst in person, by registered post or in another manner approved by the CEO.

Section 57 remakes regulation 83 of the Excise Regulations 1925.  Subregulations 83(3) and (4) prescribed requirements regarding disputes as to the identity of the part received by the analyst and evidence.  These provisions are prescriptive and unnecessary and have not been remade in section 57.

Part 7 - Transitional matters

Section 58 - Things done under the Excise Regulations 1925

This section provides that if:

•                 a thing was done for a particular purpose under the Excise Regulations 1925 as in force immediately before the Excise Regulations 1925 were repealed; and

•                 the thing could be done for that purpose under the Regulation;

the thing has effect for the purpose of the Regulation as if it had been done under the Regulation.

A reference to 'a thing', without limiting section 58, includes a reference to a notice, application or other instrument being given or made.

This section is intended to ensure that a thing done for a particular purpose continues to have been done for that purpose once the Excise Regulations 1925 are repealed and the Regulation comes into force, as if it has been done under the Regulation.

Example 1.1 - Continuation of refund application

Anthony makes an application on 10 March 2015 for a refund of excise duty pursuant to the circumstance in paragraph 50(1)(da) of the Excise Regulations 1925.  Anthony's application is not determined until after the commencement of the new Regulation.  The circumstance in paragraph 50(1)(da) of the Excise Regulations 1925 is remade as Schedule 1, subclause 1(1), item 6.

Anthony's application remains on foot under the new Regulation.

Section 59 - Application of Excise Regulations 1925 to permissions under the Excise Act 1901

This section provides that despite the repeal of the Excise Regulations 1925, those Regulations (the old regulations) as in force immediately before they were repealed, continue to apply in relation to a permission in force at that time (under section 61C, 61D or 61E of the Excise Act 1901). This provides certainty for permission holders.

Example 1.2 - Continuation of permission

          Anastasios is the proprietor of Goods-to-go Pty Ltd, an off-airport duty free shop that was granted a permission, pursuant to subsection 61D(2) of the Excise Act 1901 and related regulations in Part IVA of the Excise Regulations 1925.  The permission was granted on 1 December 2014.

          The permission and the conditions relating to that permission remain on foot. 

However, if the permission is amended on or after 1 April 2015, the old regulations cease to apply in relation to the permission when the amendment of the permission takes effect (the amendment time), and the Regulation applies in relation to the permission as if the permission had been given after the repeal of the old regulations.  This ensures that the operation of the old regulations does not continue indefinitely and that the Regulation applies once the permission is altered.

Example 1.3 - Continuation of permission - conditions amended

Following on from Example 1.2 above, on 30 May 2015 the CEO examines Goods-to-go Pty Ltd's permission following the commencement of the Excise Regulation 2015.  The permission is amended to ensure that it is up to date with the Excise Regulation 2015.    

From the amendment time, the permission and conditions are taken to have been given under the Excise Regulation 2015 and the Excise Regulation 2015 applies to the permission and the conditions relating to that permission.

If an application for a permission under section 61C, 61D or 61E of the Excise Act 1901 had been made before the repeal of the old regulations, but no decision had been made on the application at the time of the repeal, the Regulation applies in relation to the application as if the application had been made after the repeal. 

Section 7 of the Acts Interpretation Act 1901 provides generally for the effect of the repeal of an instrument made under an Act.  Section 7 of the Acts Interpretation Act 1901 ensures that the repeal of the Excise Regulations 1925 does not affect a right, privilege, obligation or liability acquired, accrued or incurred or thing done under the regulations.

Schedule 1 - Circumstances for remissions, rebates and refunds

Clause 1 - circumstances in which remission, rebate or refund may be made on application, or without an application if the goods are lost, destroyed or otherwise ceased to exist

The table in subclause 1(1) of Schedule 1 sets out the circumstances in which a remission, rebate or refund of excise duty may be allowed if an application is made in accordance with section 10.

However, if the goods mentioned in the circumstance in an item of the table in subclause 1(1) of Schedule 1 have been totally lost or destroyed, or have otherwise ceased to exist, remission of excise duty may be allowed without an application.

The circumstances are listed in Table 1.3 below, along with the equivalent or comparative provision in the Excise Regulations 1925.

Table 1.3  Remission, rebate and refund circumstances

Subclause 1(1), items 3 and 4

Items 3 and 4 remake paragraphs 50(1)(c) and (ca) of the Excise Regulations 1925.  Paragraphs 50(1)(c) and (ca) covered the refund circumstance where excise duty was paid through manifest error of fact or patent misconception of the law. 

Under paragraph 50(1)(ca), there was an additional requirement for the refund circumstance to apply in the case of gaseous fuels, that was, 'the person claiming a refund of the excise duty reasonably believes that the entity to which the goods were sold or supplied considered, at the time of the sale or supply, that excise duty was not payable on the goods'.  The intention of this requirement was to ensure that a refund of excise duty was not payable for fuel that has been used for a non-transport purpose (where duty is not payable) and where the duty had been refunded or credited to the purchaser of the fuel.

The refund circumstance for gaseous fuel in paragraph 50(1)(ca) has been remade as item 4, and amended to make the intention of this provision clearer.  The circumstance now provides that a remission, rebate or refund made be made where:

Excise duty has been paid on gaseous fuel because of manifest error of fact or patent misconception of the law, unless:

•                 the excise duty was paid in circumstances in which excise duty was not payable; and

•                 the gaseous fuel was sold to a person for a price that included an amount for excise duty (the excise duty portion); and

•                 an amount equal to the excise duty portion had not been refunded or credited to the person.

(Note: For paragraph (a), an example of when excise duty is not payable is when the gaseous fuel is for non-transport use.)  

Subclause 1(1), item 7

Item 7 remakes paragraphs 50(1)(db), (h), (k) and (v) of the Excise Regulations 1925.  These paragraphs covered the following circumstances:

•                 after excise duty has been paid on goods:

-               any Minister of State requests that the goods be withdrawn from sale or distribution on grounds stated by the Minister to be grounds of public health or safety; and

-               the goods are withdrawn and are returned to the manufacturer of the goods (paragraph 50(1)(db));

•                 tobacco, cigarettes, cigars or snuff on which excise duty has been paid are returned, or are to be deemed to have been returned, to the manufacturer of those goods (paragraph 50(1)(h));

•                 beer on which excise duty has been paid (being beer contained in a bulk container):

-               is returned to the brewery at which it was made in the bulk container in which it was contained when it was removed from the brewery; or

-               it is destroyed by permission of a Collector (CEO) (paragraph 50(1)(k);

•                 excise duty has been paid on petrol, and that petrol, in whole or in part is returned to a manufacturer or to a warehouse.

In addition to the specific circumstances in covered by paragraphs 50(1)(h),(k) and (v) of the Excise Regulations 1925, there were additional specific requirements for different goods, as follows:

•                 for tobacco and tobacco products, the tobacco must be destroyed or mixed with other tobacco so that the identity of the returned tobacco or tobacco product was (section 55); and

•                 for beer, the beer must be returned to the brewery within 90 days after it was first removed from the brewery, or destroyed with permission of the CEO within 90 days after it was first removed from the brewery (section 56); and

•                 for petrol, there were specific requirements relating to keeping certain records and additional requirements for the return of contaminated petrol (section 57AA).

These paragraphs have been simplified in item 7 and remade into a single refund circumstance for excise duty on excisable goods that:

•                 have not been used; and

•                 are returned to licensed premises (that is, premises for which a license has been granted under section 39A of the Excise Act 1901), or a person authorised by the manufacturer to receive goods on behalf of the manufacturer; and

•                 are destroyed, or subjected to further manufacture or production.

The principle of item 7 is that a refund of excise duty should be available for unused excisable goods where there is a need for them to be destroyed or they are returned and used in a further manufacturing or production process.  The new circumstance under item 7 simplifies the existing unnecessary requirements relating to different goods.

The requirement that goods are returned to a person authorised by the manufacturer to receive goods on behalf of the manufacturer, ensures that goods that require destruction at a specialised place (for example a municipal tip or industrial incinerator) may be directly delivered to that place.

The removal of the requirement in paragraph 50(1)(db) of the Excise Regulations 1925 that a Minister must request that the goods be withdrawn in order for the circumstance to apply, is intended to eliminate any disincentive for the voluntary recall of goods.

Subclause 1(1), item 18

Item 18 remakes paragraphs 50(1)(zz) and (zza) of the Excise Regulations 1925.  Paragraph 50(1)(zz) applied in relation to the remission of excise duty and paragraph 50(1)(zza) applied in relation to the refund or rebate of excise duty. 

In combining these two paragraphs in table item 18 in the Regulation, the additional requirement that existed in paragraph 50(1)(zz)(iv) of the Excise Regulations 1925 for the recycled product to be delivered in accordance with a permission given under section 61C of the Excise Act 1901, has been replicated in table item 18, paragraph (d), and applies only to an application for remission.

Clause 2 - circumstances in which remission, rebate or refund may be made without an application

The table in clause 2 of Schedule 1 sets out the circumstances in which a remission, rebate or refund of excise duty may be made without an application being made.  However, if the goods mentioned in a circumstance in an item of the table in subclause 1(1) of Schedule 1 have been totally lost or destroyed, or have otherwise ceased to exist, remission of excise duty may also be allowed without an application: see Schedule 1, subclause 1(1), paragraph (b).

The circumstances are listed in Table 1.4 below, along with the equivalent or comparative provision in the Excise Regulations 1925.

Table 1.4 Remission, rebate or refund circumstances - no application required

Changes to operation of circumstances for remission, rebate or refund without application

Clause 2, item 8 - goods sold for a specific diplomatic or consular use

Item 8 remakes paragraph 50(1)(ta) of the Excise Regulations 1925.  Paragraph 50(1)(ta) of the Excise Regulations 1925 previously required a taxpayer to make an application where goods were delivered for home consumption and sold for a specified diplomatic or consular use.  To reduce compliance costs, a remission under this circumstance may now be allowed under item 8 without an application.

Schedule 2 to the Regulation - Repeals

Schedule 2 to the Regulation repeals the Excise Regulations 1925.

Finding tables

References to the old regulation in the finding tables are to equivalent, or broadly equivalent provisions in the Excise Regulations 1925.  References to the new regulation are to provisions in the Regulation, unless otherwise indicated.  Also, in the finding tables:

•                 no equivalent means that this is a new provision that has no equivalent in the old regulation.  Typically, these would be guide material.

•                 omitted means that the provision in the old regulation has not been rewritten in the new regulation.  Typically, this is because the provision has been removed because it is redundant.

Regulation structure: parts

Table 1.5: New regulation to old regulation

Table 1.6: Old regulation to new regulation

Regulation provisions: section/regulation numbers

Table 1.7: New regulation to old regulation

Table 1.8: Old regulation to new regulation

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Excise Regulation 2015

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Excise Regulation 2015 remakes the Excise Regulations 1925.  The Legislative Instruments Act 2003 (LIA) provides that all legislative instruments, other than exempt instruments, progressively 'sunset' according to the timetable set out in the LIA.  Legislative instruments made before 1930 that were registered on the Federal Register of Legislative Instruments on 1 January 2005, such as the Excise Regulations 1925, sunset on 1 April 2015.  When a legislative instrument sunsets, it is automatically repealed under section 50 of the LIA.

The Regulation remakes the Excise Regulations 1925, and makes significant improvements to the existing provisions by repealing redundant provisions, simplifying language and restructuring provisions that have become difficult to navigate because of multiple amendments over the past 90 years.  Consistent with the Government's deregulation agenda, the key changes are:

•                 the circumstances where a refund, remission or rebate may be available have been simplified and included in a table in Schedule 1 to the Regulation to facilitate navigation and amendment;

•                 the default period for lodgement of an application for a refund for certain circumstances has been extended from 14 days to 12 months to reflect the Commissioner of Taxation's (CEO) administrative practice and to streamline application periods;

•                 all references to 'Collector' have been replaced with 'CEO' to ensure consistency throughout the Regulation;

•                 the requirement for the CEO to enter into a formal 'arrangement' with a person to set off a refund or rebate against a liability for excise duty has been removed to reduce compliance costs and to ensure consistency with set offs under other taxes;

•                 the provisions regarding duty-free shops have been restructured to make them easier to understand and navigate;

•                 redundant provisions for drawback of excise duty and aircraft stores have been removed; and

•                 provisions have been expressed in a way that is easier to understand in order to reduce compliance costs.

Further details of the Regulation are set out in the Attachment to the Explanatory Statement.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

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