House debates
Thursday, 25 September 2008
Excise Legislation Amendment (Condensate) Bill 2008
Consideration of Senate Message
Bill returned from the Senate with requested amendments.
Ordered that the requested amendments be considered immediately.
Senate’s requested amendments—
(1) Clause 2, page 1 (lines 7 to 9), omit the clause, substitute:
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/ Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent. | |
2. Schedule 1 | The later of: (a) the start of the day on which this Act receives the Royal Assent; and (b) the start of the day on which the Excise Tariff Amendment (Condensate) Act 2008 receives the Royal Assent. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. | |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
(2) Schedule 1, item 7, page 5 (line 3), omit “or in the regulations”.
(3) Schedule 1, item 7, page 5 (line 9), omit “or in the regulations”.
(4) Schedule 1, item 7, page 5 (line 12), after “following in”, insert “the regulations, or in”.
(5) Schedule 1, item 13, page 7 (after line 14), after subitem (2), insert:
Determination of interim VOLWARE prices
(2A) Subsections 7(2), (3) and (4) of the Petroleum Excise (Prices) Act 1987 apply, in relation to a prescribed condensate production area and the pre-commencement period, as if those subsections were replaced with the following:
“ (2) The Minister, or a person authorised by the Minister to exercise the Minister’s powers under this section, must, not later than 2 months, or such longer period as the Minister allows, after the day on which Schedule 1 to the Excise Tariff Amendment (Condensate) Act 2008 commences, determine a price in relation to each month in the pre-commencement period and an oil producing region, to be known as the interim VOLWARE price for that month and that region, being an estimate by the Minister or authorised person, on the basis of the information available to him or her at the time (being information obtained under section 6 or otherwise), of the amount that will finally be determined to be the volume weighted average of realised prices for that month and that region.”
“ (3) The Minister, or a person authorised by the Minister to exercise the Minister’s powers under this section, must, not later than 6 months after the day on which an interim VOLWARE price is determined for a month in relation to an oil producing region, determine a price in relation to that month and that region, to be known as the final VOLWARE price for that month and that region, being the final determination by the Minister or authorised person of the volume weighted average of realised prices for that month and that region.”
“ (4) A determination of the final VOLWARE price for a month and an oil producing region must not be made unless:
(a) the Minister or authorised person is satisfied that accurate and complete information concerning all of the transactions relevant to determining the price has become available to the Minister or authorised person; or
(b) 5 months and 20 days have passed since the day on which an interim VOLWARE price was determined for that month and information that the Minister or authorised person is satisfied is accurate and complete concerning all of those transactions has not yet become available to the Minister or authorised person.”
(6) Schedule 1, item 13, page 7 (before line 15), before subitem (3), insert:
Definitions
(7) Schedule 1, item 13, page 7 (after line 16), after the definition of month, insert:
pre-commencement period means the period:
(a) beginning at midnight (by legal time in the Australian Capital Territory) on 30 April 2008; and
(b) ending at midnight on the last day of the last month that ends before the day on which Schedule 1 to the Excise Tariff Amendment (Condensate) Act 2008 commences.
(8) Schedule 1, item 14, page 8 (lines 11 and 12), omit “the definition of first day were 14 May 2008”, substitute “the references to “the first day” in paragraph (a) and subparagraph (b)(iii) of the definition of transition period, and in subparagraph 15(4)(a)(ii) and paragraph 15(4)(b) of the Excise Act 1901,were references to “the day on which Schedule 1 to the Excise Tariff Amendment (Condensate) Act 2008 commences””.
(9) Schedule 1, page 8 (after line 12), at the end of the Schedule, add:
15 Time for compliance with Excise Act 1901
Section 15 of the Excise Act 1901 applies in relation to condensate as if the references to “the first day” in the following provisions were references to “the day on which Schedule 1 to the Excise Tariff Amendment (Condensate) Act 2008 commences”:
(a) paragraph (a) and subparagraph (b)(iii) of the definition of transition period in subsection 15(3);
(b) subparagraph 15(4)(a)(ii);
(c) paragraph 15(4)(b).
4:16 pm
Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
I move:
That the requested amendments be made.
The government’s budget condensate measure has the effect of removing the current exemption of condensate from the crude oil excise regime. It applies to condensate produced after midnight Canberra time on 13 May 2008. Earlier today, the Senate passed the condensate measure with the government’s minor amendments. I would like to acknowledge the cooperation of the Greens, Senator Xenophon and Senator Fielding on this measure. I would also like to note again the government’s support for Senator Xenophon’s reference to the Senate Standing Committee on Economics of the North West Shelf project joint marketing arrangements and their impact on competition in the upstream gas market and on prices paid by consumers.
The government’s minor amendments are required to ensure that the measure operates from the announcement date of 13 May 2008. The amendments to the Excise Legislation Amendment (Condensate) Bill 2008 will ensure that a price can be declared for condensate produced in the period following the announcement of the measure and prior to the legislation receiving royal assent. The amendments to the Excise Act 1901 and Petroleum Excise (Prices) Act 1987 will extend interim arrangements in the bills to ensure that condensate may be produced and entered for home consumption lawfully prior to the bills receiving royal assent. These amendments are transitional changes and so do not establish a precedent for future excise measures. Two other technical amendments strengthen the operation of the legislative framework. The measure allows the Australian community to share more fairly in the benefits from allowing the extraction of non-renewable energy resources located in the North West Shelf project area and onshore. As the development of petroleum fuels in this region is now reaching maturity, together with high world oil prices for non-renewable energy resources, there is no longer a need to retain this generous concession. This measure also makes a significant contribution for the government’s fiscal discipline. I commend the amendments to the House.
Question agreed to.