{"id":"F2016L01522","name":"Excise (Mass of CNG) Determination 2016 (No.2) 2016","slug":"excise-mass-of-cng-determination-2016-no-2-2016","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95172,"registerId":"commonwealth-F2016L01522-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Excise (Mass of CNG) Determination 2016 (No.2) 2016","content":"Legislative Instrument\n\nExcise (Mass of CNG) Determination 2016 (No.2)\n\nI, Deborah Jenkins, Acting Deputy Commissioner of Taxation, make this determination under section 65 of the Excise Act 1901 (‘Excise Act’).\n\nDeborah Jenkins\n\nActing Deputy Commissioner of Taxation\n\nDated: 13/09/2016\n\nName of determination\n\n    This determination is the Excise (Mass of CNG) Determination 2016 (No.2) 2016.\n\nCommencement\n\n    2. This determination commences on the day after registration.\n\nRepeal of previous determination\n\n    3. Excise (Mass of CNG) Determination 2016 (No. 1)­ – F2016L0013 registered on the 19/02/2016 is repealed on the commencement of this determination.\n\nDetermination\n\n5. This determination is a legislative instrument for the purposes of the Legislation Act 2003.\n\n6. This determination applies to Compressed Natural Gas (CNG) classified to sub-item 10.19C of the Schedule to the Excise Tariff Act 1921 (the Schedule) that is delivered for home consumption pursuant to section 61C of the Excise Act on or after the date of commencement.\n\nObject\n\n6. Under section 65 of the Excise Act, the CEO may determine rules for working out the volume or weight of excisable goods.\n\n7. These rules govern the methods for calculating the mass of excisable CNG for the purposes of determining the amount of excise duty payable.\n\n  \n\nDetermining the mass of CNG\n\n8. To determine the duty applicable to excisable CNG, the dutiable quantity must first be determined. For excisable CNG this is the mass in kilograms. In determining the mass of excisable CNG delivered into home consumption, the following methods are permissible:\n\n9. Where a person’s measuring equipment can differentiate quantities of excisable CNG from other quantities of CNG produced or natural gas used the person must, subject to paragraph 13, calculate the mass of excisable CNG delivered into home consumption using method 1, 2 or 3.\n\nMethod 1 - If your measuring equipment measures goods in kilograms, you must use this figure.\n\nMethod 2 - If your measuring equipment measures goods as energy (joules), you must convert to kilograms by either:\n\n(a) the use of the conversion factor stipulated in Section 24(3) of the Excise Regulation 2015 (Excise Regulation); or\n\n(b) the use of a conversion factor based on the composition of the gas by mole fraction using the method as described in the International Organization for Standardization ISO 6976-1995, Natural gas – Calculation of calorific values, density and Wobbe index from composition.\n\nMethod 3 - If your measuring equipment measures goods in volume (cubic metres), you must calculate the mass of excisable CNG delivered into home consumption by either:\n\n(a) (i) converting from cubic metres (m3) to megajoules by using the heating value and any associated correction/pressure factors of the gas, as supplied by your gas distributor in your most recent tax invoice, or by applying an average heating value and an average of any associated correction/pressure factors of the gas, as supplied by your gas distributor, over an accounting period; and then\n\n(ii) converting the megajoule value to kilograms by employing the rate stipulated in Section 24(3) of the Excise Regulation; or\n\n(b) (i) correcting the volume of gas measured by you to standard referencing conditions (101.325 kPa and 288.15 K) using Australian Standard / International Organization for Standardization AS ISO 13443-2007, Natural gas – Standard reference conditions; and then\n\n(ii) applying the conversion factor based on the composition of the gas by mole fraction as per the method described in the International Organization for Standardization ISO 6976-1995, Natural gas – Calculation of calorific values, density and Wobbe index from composition.\n\n10. Where a person’s measuring equipment cannot differentiate excisable quantities of CNG from other quantities of CNG produced or natural gas used and aggregated clearances of excisable CNG do not exceed 150,000 kilograms per accounting period, subject to paragraph 13, the following methods to calculate the mass of excisable CNG delivered into home consumption are permissible:\n\nMethod 4 \\- a measured constructive method of apportionment using an appropriate reliable measure (or combination of reliable measures) may be used as the basis for calculating the quantity of excisable CNG.\n\nMethod 5 \\- a measured deductive method of apportionment using an appropriate reliable measure (or combination of reliable measures) may be used as the basis for calculating the quantity of excisable CNG.\n\n11. For methods 4 and 5, appropriate reliable measures that may be used as the basis for calculating quantities of excisable CNG include:\n\n-   gas flow meter measuring equipment\n-   a vehicle’s odometer readings of kilometres actually travelled\n-   route distances if a vehicle operates on fixed routes\n-   kilowatt hours of electricity generated\n-   hours of operation of vehicle or equipment, or\n-   average hourly fuel consumption of vehicle or equipment\n\n12. For the purposes of paragraph 9, the versions of the incorporated standards Australian Standard AS ISO 13443-2007 and the International Organization for Standardization ISO 6976-1995 that are current at the time of commencement of this determination are to be used.\n\n13. A person must only use one Method for each excise licensed establishment for the duration of an accounting period unless authorised in writing by the CEO to do otherwise.\n\nDefinitions\n\n14. The following expressions are defined for the purposes of this determination:\n\naccounting period means the 12 month period adopted for income tax purposes as provided by section 18 of the Income Tax Assessment Act 1936, or another period approved in writing by the CEO.\n\naggregated clearances means the mass of CNG delivered for home consumption by you in the accounting period from excise licensed establishments based on historical data, or the mass of CNG reasonably expected to be delivered for home consumption by you in an accounting period if no historical data is available.\n\nCEO means the Commissioner of Taxation (see subsection 4(1) of the Excise Act).\n\nCNG means compressed natural gas.\n\nExcisable CNG means CNG classified to sub-item 10.19C of the Schedule.\n\nexcise licensed establishment means premises that are specified in an Excise licence issued pursuant to section 39A of the Excise Act.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"This determination appears to operate within its original intended scope. It replaces an earlier 2016 determination (No. 1) with updated rules for calculating CNG mass for excise purposes, but does not expand beyond the technical measurement rules contemplated by section 65 of the Excise Act 1901. The scope remains limited to methodological guidance for a specific excisable fuel type (CNG classified to sub-item 10.19C)."},"complexity_factors":["Five distinct calculation methods with specific eligibility criteria based on equipment capabilities and volume thresholds","Mandatory incorporation by reference of three external technical standards (Excise Regulation 2015 section 24(3), ISO 6976-1995, AS ISO 13443-2007) with version-locking to commencement date","Nested conditional logic: Method selection depends on equipment capability AND volume threshold AND accounting period constraints","Cross-references to four other legislative instruments (Excise Act 1901, Excise Tariff Act 1921, Excise Regulation 2015, Income Tax Assessment Act 1936)","Defined terms section with 5 definitions, including circular reference risk ('accounting period' references CEO approval which references CEO definition)","Exception/override clause in paragraph 13 requiring Commissioner written approval for method switching mid-accounting period"],"plain_english_summary":"This rule tells businesses how to calculate the kilograms of Compressed Natural Gas (CNG) subject to Australian excise, prescribing different measurement and estimation approaches depending on available equipment and annual volumes. It applies to producers, storers and sellers who hold an excise licence and deliver CNG into the Australian market. By standardising conversions and requiring a consistent method per premises, it ensures excise is assessed fairly and reduces risk of under- or over-payment."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This instrument repeals the earlier Excise (Mass of CNG) Determination 2016 (No.1) (para 3) and restates the permissible methods, thresholds and procedural constraints for calculating mass of excisable CNG. The instrument therefore replaces the operative determination; the text does not detail line‑by‑line differences from the repealed instrument, so specific substantive shifts compared with the prior version cannot be identified from this instrument alone."},"complexity_factors":["Multiple measurement pathways (mass, energy, volume) with stepwise conversions increase operational choices and calculation steps (Methods 1–3, para 9).","Incorporation of external technical standards and a regulation cross‑reference: ISO 6976‑1995 and AS ISO 13443‑2007, and Section 24(3) of the Excise Regulation 2015 (paras 9, 12).","Alternative apportionment methods for suppliers unable to segregate excisable volumes, including measured constructive and deductive approaches, add methodological discretion (Methods 4–5, para 10).","A de minimis threshold and aggregated clearances concept affects eligibility for apportionment rules (150,000 kg per accounting period) creating a behavioural cutoff (para 10).","Administrative constraint requiring a single chosen method per excise licensed establishment per accounting period unless the CEO authorises otherwise increases compliance rigidity and recordkeeping (para 13).","Definitions and administratively determined terms (accounting period, aggregated clearances, CEO, excise licensed establishment) centralise discretion in the Commissioner and affect implementation (para 14).","Repeal of the prior Determination requires affected operators to note any procedural changes and possibly update systems on commencement (para 3).","Conversion depends on third‑party data (gas distributor invoices or average values) which can shift compliance burdens to record collection and verification (Method 3(a)(i), para 9)."],"plain_english_summary":"This instrument prescribes how to calculate the mass (kilograms) of compressed natural gas (CNG) liable to excise when delivered for home consumption. It specifies permitted conversion methods from direct mass, energy or volume measurements, allows measured apportionment for smaller suppliers, and requires each excise‑licensed establishment to use one method per accounting period.\n\nIt applies to businesses delivering CNG for home consumption; those businesses must calculate excise by the prescribed methods, keep measurement records, and may need to use distributor data or ISO/AS conversion standards."}},"importantCases":[],"_links":{"self":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016","history":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016/history","analysis":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016/analysis","conflicts":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016/conflicts","importantCases":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016/important-cases","documents":"/api/acts/excise-mass-of-cng-determination-2016-no-2-2016/documents"}}