7ALimitation of subsidized use by industrial users

7A Limitation of subsidized use by industrial users

(1) In this section:

consumption period means any of the periods referred to in subsection (1A).

corporation means a body corporate that:

(a) is a foreign corporation;
(b) is a trading corporation formed within the limits of Australia or is a financial corporation so formed; or
(c) is incorporated in a Territory.

financial corporation means a financial corporation within the eaning of paragraph 51(xx) of the Constitution, and includes a body corporate that carries on as its sole or principal business the business of banking (other than State banking not extending beyond the limits of the State concerned) or insurance (other than State insurance not extending beyond the limits of the State concerned).

foreign corporation means a foreign corporation within the meaning of paragraph 51(xx) of the Constitution, and includes a body corporate that is incorporated in an external Territory.

gas means liquefied petroleum gas or eligible reticulation gas.

industrial use means use that is eligible use by virtue of paragraph (d) of the definition of eligible use in section 3.

relevant day means the forty‑second day after the day on which the Liquefied Petroleum Gas (Grants) Amendment Act 1982 received the Royal Assent.

trading corporation means a trading corporation within the meaning of paragraph 51(xx) of the Constitution.

(1A) For the purposes of this section: (a) the first consumption period is the period of 12 months that commenced on 1 October 1982; (b) the second consumption period is the period that commenced on 1 October 1983 and ended on 28 March 1984; (c) the third consumption period is the period that commenced on 29 March 1984 and ends on 30 September 1984; (d) the fourth consumption period is the period of 12 months commencing on 1 October 1984. (2) A reference in this section to the sale of gas to, or the purchase of gas by, a corporation shall be read as not including a reference to the sale to the corporation or the purchase by the corporation, as the case may be, of liquefied petroleum gas where the gas is supplied to the corporation by decanting the gas into a prescribed cylinder. (3) A reference in this section to the use of gas by a corporation for industrial use shall be read as not including a reference to any gas sold to the corporation that is determined by the Minister, under the provision required to be included in a scheme by virtue of subsection 6(6A) or 7(6A), to be deemed for the purposes of the scheme to have been sold otherwise than for eligible use. (4) For the purposes of this section, one tonne of eligible reticulation gas shall be taken to be that quantity of eligible reticulation gas (whether measured by volume or otherwise) that is capable of producing 50,000 megajoules of heat. (5) For the purposes of this section, the allowable quantity of gas, in relation to a corporation in relation to a consumption period, is: (a) if the CEO does not make a determination under subsection (7) in relation to the corporation in relation to that consumption period: (i) in relation to the first consumption period and the fourth consumption period—1,000 tonnes of gas; and (ii) in relation to the second consumption period and the third consumption period—500 tonnes of gas; and (b) if the CEO makes a determination in relation to the corporation under subsection (7) in relation to that consumption period—the quantity of gas set out in the determination in relation to that consumption period. (6) Where: (a) a corporation used for industrial use during the period of 12 months that commenced on 1 October 1980 more than 1,000 tonnes of gas; or (b) a corporation will, by reason of the implementation of a contract entered into by the corporation on or before 25 September 1981, being a contract relating to: (i) the purchase of gas; or (ii) the purchase, construction or modification of plant or the conversion of plant to the use of gas; use for industrial use during the first consumption period a total quantity of gas that exceeds 1,000 tonnes or use for industrial use during the second consumption period a total quantity of gas that exceeds 500 tonnes; the corporation may, before the expiration of 28 days after the commencement of this subsection, give notice in writing to the CEO requesting the CEO to make a determination under subsection (7) that the allowable quantity of gas in relation to the corporation in relation to the first consumption period or the second consumption period is a specified quantity of gas, being a quantity of gas that exceeds 1,000 tonnes or 500 tonnes, as the case may be. (7) Where the CEO receives a request made by a corporation in accordance with subsection (6): (a) if the CEO is satisfied that, having regard only to: (i) the use of gas for industrial use by the corporation during the period referred to in paragraph (6)(a); and (ii) if relevant, the likely effect of the implementation of a contract of a kind referred to in paragraph (6)(b) on the use of gas for industrial use by the corporation during the consumption period to which the request relates; the corporation will use for industrial use during the first consumption period a total quantity of gas that exceeds 1,000 tonnes or will use for industrial use during the second consumption period a total quantity of gas that exceeds 500 tonnes, as the case may be—the CEO shall, before the relevant day, make a determination that a quantity of gas being the quantity of gas that, in the opinion of the CEO, having regard only to the matters referred to in subparagraphs (i) and (ii) the corporation will use for industrial use during the first consumption period or the second consumption period, as the case may be, is the allowable quantity of gas in relation to the corporation in relation to that consumption period; and (b) if the CEO is not so satisfied—the CEO shall refuse to make a determination under this subsection in relation to the corporation in relation to the consumption period to which the request relates. (8) Where the CEO makes a determination under subsection (7) in relation to a corporation or, after receiving a request from a corporation in accordance with subsection (6), the CEO refuses to make a determination under subsection (7) in relation to the corporation, the CEO shall, before the relevant day, give notice in writing to the corporation setting out the terms of the determination or stating that the CEO has refused to make a determination under subsection (7) in relation to the corporation, as the case may be. (8A) Where the CEO has made a determination under subsection (7) in relation to a corporation in relation to the first consumption period, the quantity of gas specified in the determination shall be deemed also to be the allowable quantity of gas in relation to the corporation in relation to the fourth consumption period. (8C) Where the CEO has made, in relation to a corporation, a determination under subsection (7) in relation to the first consumption period and in relation to the second consumption period, the allowable quantity of gas in relation to the corporation in relation to the third consumption period is the quantity by which the quantity of gas specified in the determination in relation to the first consumption period exceeds the quantity of gas specified in the determination in relation to the second consumption period. (9) Where the total quantity of gas purchased by a corporation for industrial use during the period commencing on 1 October 1982 and ending on the relevant day, being gas in relation to which the corporation has received the benefit of a payment or payments under a scheme or schemes, is equal to, or exceeds, the allowable quantity of gas in relation to the corporation in relation to the first consumption period, the corporation is not entitled to receive the benefit of a payment or payments under a scheme or schemes in respect of any gas purchased by the corporation for industrial use after the relevant day and during that consumption period, and the corporation shall: (a) before the expiration of 50 days after the date of commencement of this subsection, give notice in writing to the CEO; and (b) before purchasing after the relevant day and during that consumption period from a distributor of gas any gas for industrial use, give notice in writing to that distributor; stating that the corporation is not entitled to receive the benefit of a payment or payments under a scheme or schemes in respect of any purchase of gas for industrial use by the corporation after the relevant day and during that consumption period.