Commonwealth Numbered Regulations - Explanatory Statements

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PETROLEUM EXCISE (PRICES) REGULATIONS (AMENDMENT) 1991 NO. 177

STATUTORY RULES 1991 No. 177

Issued by the Authority of the Minister of State for Resources.

PETROLEUM EXCISE (PRICES) ACT 1987

PETROLEUM EXCISE (PRICES) REGULATIONS (AMENDMENT)

The purpose of the Petroleum Excise (Priced Act 1987 (the Act) is to determine on a monthly basis a volume weighted average realised (VOLWARE) price for petroleum, which is used as the basis for determining excise payable under the Excise Tariff Act 1921.

The Act initially applied only to offshore areas producing excisable crude petroleum but as the Bass Strait producing region was the only region producing excisable petroleum, the Act was effectively confined to this region.

In the latter half of 1989, it became apparent that the Act would need to be extended to onshore regions producing excisable petroleum. This arose because cumulative production at the Jackson field in South West Queensland was approaching 4767.3 megalitres (30 million barrel) the excise exempt limit prescribed in the Excise Tariff Act 1921. As a result the Act was amended to widen its application so that a VOLWARE price could be determined for onshore regions producing excisable petroleum. On 21 December 1990, the Petroleum Excise (Prices) Amendment Act 1990, which put these changes into effect, received the Royal Assent. The consequential Regulation changes were approved by the Executive Council on 11 April 1991 and gazetted on 17 April 1991 (NO 68 of 91).

During the present session of Parliament the Petroleum Resource Rent Legislation Amendment Bill 1991 will be presented. This Bill has the effect of applying a resource rent tax to the Bass Strait region and consequent to its passage there is the need to remove the Bass Strait region from the Schedule in the Regulations of the Petroleum Excise (Prices) Act 1987.

The proposed Regulations will remove the Bass Strait oil producing region from the Schedule of the Petroleum Excise (Prices) Regulations.