Fuel Security Act 2021
64Determining pecuniary penalty for contravention of minimum stockholding obligation
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64 Determining pecuniary penalty for contravention of minimum stockholding obligation
Maximum pecuniary penalty for contravention of section 7 (1) If: (a) an entity is subject to the minimum stockholding obligation in relation to an MSO product on an obligation day; and (b) the entity contravenes section 7 by not holding at least the quantity of stocks of the product designated for the entity on the obligation day; then, for the purposes of the pecuniary penalty set out at the foot of section 7, the number of penalty units is worked out using the following formula: Start formula Applicable multiplier times Designated quantity of stocks times Number of non compliant days for the obligation day end formula where:
applicable multiplier means:
(a) if the entity is a body corporate—2; and
(b) otherwise—0.2.
designated quantity of stocks means the quantity (in megalitres) of stocks of the product designated for the entity on the obligation day (see section 13).
number of non compliant days for the obligation day means:
(a) 1; or
(b) if the entity also contravenes section 7 on the next obligation day by not holding at least the quantity of stocks of the product designated for the entity on that next obligation day—the number of days in the period:
(i) starting on the obligation day; and
(ii) ending on the day before the next obligation day.
Maximum pecuniary penalty for contravention of subsection 8(1) (2) If: (a) an entity that has an Australian controlling corporation is subject to the minimum stockholding obligation in relation to an MSO product on an obligation day; and (b) the Australian controlling corporation contravenes subsection 8(1) by not ensuring that the entity complies with section 7 in relation to the product on the obligation day; then, for the purposes of the pecuniary penalty set out at the foot of subsection 8(1), the number of penalty units is worked out using the following formula: Start formula 2 times Designated quantity of stocks times Number of non compliant days for the obligation day end formula where:
designated quantity of stocks means the quantity (in megalitres) of stocks of the product designated for the entity on the obligation day (see section 13).
number of non compliant days for the obligation day means:
(a) 1; or
(b) if the Australian controlling corporation also contravenes subsection 8(1) on the next obligation day by not ensuring that the entity holds at least the quantity of stocks of the product designated for the entity on that next obligation day—the number of days in the period:
(i) starting on the obligation day; and
(ii) ending on the day before the next obligation day.