These Regulations set the technical rules for calculating petroleum excise values and for reporting transactions under the Petroleum Excise (Prices) Act 1987: they define terms and oil‑producing regions and VOLWARE commencement dates (ss 6–7), prescribe formulae for transaction prices and credit allowances (ss 9–11), and set rules for transport costs and foreign‑currency conversion (ss 12–13). They require oil and condensate producers to provide detailed transaction data to the Minister (s 8). Producers carry the compliance and calculation burden; the credit allowance reduces excisable value where extended payment terms apply (s 9).
The Petroleum Excise (Prices) Regulations 2018 is a subordinate instrument made under the Petroleum Excise (Prices) Act 1987 (see s 3). Mechanically, it prescribes definitions, geographic production-region and commencement-date tables, the detailed data producers must give to the Minister about certain transactions, and the formulae and valuation rules used to calculate the “transaction price” and related concepts that feed into the petroleum excise regime. The instrument also sets how transport and other costs are valued and how amounts expressed in foreign currencies are converted into Australian dollars. It contains a savings provision preserving things done under the predecessor 1988 Regulations (s 14).
Concretely, the Regulations:
Define key terms used in the Act, including the Reserve Bank mid‑rate and the maximum indicator interest rate, f.o.b. contract, sale price, delivered by pipeline, number of credit days allowed, effective credit day and references to GST and input tax credit as defined by the A New Tax System (Goods and Services Tax) Act 1999 (see s 5).
Fix oil producing regions, production areas and VOLWARE commencement dates for stabilised crude petroleum oil (s 6(5) and notes) and for condensate (s 7(6) and notes). The tables contain named items, production areas and either fixed dates (for example Jackson stabilised crude: 1 November 1990, s 6(5) Item 1) or trigger dates linked to production volumes or to loss of excise exemptions under the Excise Tariff Act 1921 (s 6 note; s 7 note).
Prescribe the information oil and condensate producers must give to the Minister in respect of each transaction entered for home consumption in a month that was not produced from a limited production area (see s 8(1)-(2)). The list is detailed and includes contract identifiers, purchaser name, whether the sale is domestic or export, quantities in kilolitres and barrels, whether the contract is f.o.b., currency of payment and Reserve Bank mid‑rates for conversion, GST amounts, effective credit day and the maximum indicator interest rate (s 8(2)(a)-(xxii), (d), (h)).
Current sections
Direct links to the current provisions in Petroleum Excise (Prices) Regulations 2018.
12
1
Name
1 Name
This instrument is the Petroleum Excise (Prices) Regulations 2018.
3
Authority
3 Authority
This instrument is made under the Petroleum Excise (Prices) Act 1987.
5
Definitions
5 Definitions
In this instrument:
acquisition, for an input tax credit, has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
applicable whole cost has the meaning given by subsection 10(5).
applicable whole price has the meaning given by subsection 10(3).
associate has the same meaning as in paragraph 1(k) of Schedule 1 to the Petroleum Revenue Act 1985.
condensate producer means an oil producer as defined in subsection 4(1) of the Act, as modified in accordance with subsection 5A(3) of the Act.
delivered by pipeline means the loading of oil or condensate into a pipeline otherwise than for the purpose of loading on a ship.
due date, for payment of the sale price under a contract, means:
(a) if a period is provided under the contract within which that payment is to be made—the last day of that period; or
(b) otherwise—the day identified under the contract for that payment.
effective credit day, for a transaction comprising the sale under a contract of a quantity of crude petroleum oil or condensate, means the day immediately before any period allowed under the contract for payment of the sale price.
excisable quantity cost has the meaning given by subsection 10(4).
excisable quantity price has the meaning given by subsection 10(2).
f.o.b. contract means a contract for the sale of a quantity of crude petroleum oil by the oil producer, or condensate by the condensate producer, under which:
(a) the oil or condensate is to be loaded on a ship or ships; and
(b) the producer bears none of the costs of the following:
(i) freight;
(ii) insurance;
(iii) demurrage at the port of destination;
(iv) lighterage at the port of destination;
(v) wharfage at the port of destination;
(vi) heating of the oil or condensate;
(vii) bunkers;
for the transport of that oil or condensate to the purchaser after the oil or condensate is loaded.
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
input tax credit has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
maximum indicator interest rate, for a day, means the highest of the range of rates of interest per annum current on that day quoted by the Reserve Bank, on the basis of reports by each bank regarded by the Reserve Bank as a major trading bank operating in Australia in respect of overdrafts of $100,000 or more.
mid‑rate, for a foreign currency for a day, is the rate, expressed as an amount in that currency that is equivalent to the Australian dollar, quoted by the Reserve Bank as at 4 pm (by legal time in the Australian Capital Territory) on that day.
number of credit days allowed, under a contract for the sale of crude petroleum oil or condensate, means the number of days in any period within which payment of the sale price is to be made under the contract. The contract need not specify the duration of that period in terms of days.
Note: Example 1: That period specified in contract A is 21 days. Paragraph 9(1)(a) would apply to the contract as no more than 30 credit days are allowed under the contract.
Note: Example 2: That period specified in contract B is 5 weeks. Paragraph 9(1)(b) would apply to the contract as more than 30 credit days are allowed under the contract.
relevant delivery price has the meaning given by subsection 10(1).
sale price:
(a) for a contract for the sale of a quantity of crude petroleum oil by an oil producer, means the total amount payable to the producer under that contract for that quantity of oil; and
(b) for a contract for the sale of a quantity of condensate by a condensate producer, means the total amount payable to the producer under that contract for that quantity of condensate.
supply, for an amount of GST payable, has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
the Act means the Petroleum Excise (Prices) Act 1987.
6
Oil producing regions, production areas and VOLWARE commencement dates—stabilised crude petroleum oil
6 Oil producing regions, production areas and VOLWARE commencement dates—stabilised crude petroleum oil
(1) This section applies for the purposes of the definitions of oil producing region, production area and VOLWARE commencement date in subsection 4(1) of the Act, to the extent that those definitions relate to stabilised crude petroleum oil.
(2) If only one production area is mentioned in an item of the table in subsection (5), that production area is the whole of the oil producing region mentioned in the table item.
(3) If more than one production area is mentioned in an item of the table in subsection (5), those production areas are each part of, and together make up, the oil producing region mentioned in the table item.
(4) The date specified in an item of the table in subsection (5) is the VOLWARE commencement date for excisable crude petroleum oil obtained from the oil producing region mentioned in the table item.
(5) The table is as follows:
<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><thead><tr><td colspan="4" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Oil producing regions, production areas and VOLWARE commencement dates</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Item</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Oil producing region</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Production areas</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>VOLWARE commencement date</span></p></td></tr></thead><tbody><tr><td style="width:8.58%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Jackson</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Jackson</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span><span> </span><span>November 1990</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Thevenard Island</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) Saladin;</span></p><p class="Tablea"><span>(b) Roller/Skate</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which total production of stabilised crude petroleum oil in the production areas exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Varanus Island</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Harriet/Lenita</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which production of stabilised crude petroleum oil in the production area exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>North West Shelf project area</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) Wanaea;</span></p><p class="Tablea"><span>(b) Cossack;</span></p><p class="Tablea"><span>(c) Lambert/Hermes</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which total production of stabilised crude petroleum oil in the production areas exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Legendre</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Legendre</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which production of stabilised crude petroleum oil in the production area exceeds 4767.3 megalitres</span></p></td></tr></tbody></table>
Note: The VOLWARE commencement date for items 2, 3, 4 or 5 is the date on which production from the fields containing the production areas specified in the table item ceases to be exempt from duties of excise under the Excise Tariff Act 1921.
7
Oil producing regions, production areas and VOLWARE commencement dates—condensate
7 Oil producing regions, production areas and VOLWARE commencement dates—condensate
(1) This section applies for the purposes of the definitions of oil producing region, production area and VOLWARE commencement date in subsection 4(1) of the Act, to the extent that those definitions relate to condensate.
Note: Section 5A of the Act extends the operation of the Act so that it applies to condensate in a corresponding way to the way it applies to stabilised crude petroleum oil.
(2) If only one production area is mentioned in an item of the table in subsection (6), that production area is the whole of the oil producing region mentioned in the table item.
(3) If more than one production area is mentioned in an item of the table in subsection (6), those production areas are each part of, and together make up, the oil producing region mentioned in the table item.
(4) Two or more oil producing regions may have the same name, based on being composed of different production areas.
(5) The date specified in an item of the table in subsection (6) is the VOLWARE commencement date for excisable condensate obtained from the oil producing region mentioned in the table item.
(6) The table is as follows:
Note: The VOLWARE commencement date for items 7 or 8 is the date on which production from the fields containing the production areas specified in the table item ceases to be exempt from duties of excise under the Excise Tariff Act 1921.
8
Transactions entered into—prescribed information for giving to the Minister
8 Transactions entered into—prescribed information for giving to the Minister
(1) For the purposes of subsection 6(1) of the Act, the information in subsection (2) of this section must be given to the Minister in respect of each transaction concerning excisable crude petroleum oil or excisable condensate that:
(a) has been entered for home consumption in a month; and
(b) was not produced from a limited production area.
(2) The information is as follows:
(a) whether the producer and the other party or parties to the transaction, or the producer and any of the parties to the transaction, are associates of each other;
(b) whether under the transaction the oil or condensate is to be loaded on a ship or ships or delivered by pipeline;
(c) if under the transaction all or part of that oil or condensate is loaded on a ship under a contract:
(i) the name of the producer; and
(ii) the date of the contract; and
(iii) the number of the contract, or the shipment number, allocated by the producer; and
(iv) the purchaser’s name; and
(v) whether the sale is a domestic sale or an export sale; and
(vi) in a case where the contract so specifies—the destination of the oil or condensate; and
(vii) the name of the ship; and
(viii) the number of the bill of lading relating to the oil or condensate; and
(ix) the date of entry of the oil or condensate for home consumption; and
(x) the quantity of the oil or condensate loaded on the ship (expressed in kilolitres and in barrels); and
(xi) in a case where the contract is not an f.o.b. contract or any other contract under which the quantity of oil or condensate sold is the quantity of oil or condensate loaded on the ship—the quantity of the oil or condensate delivered under the contract (expressed as an amount of kilolitres and as an equivalent amount of barrels); and
(xii) whether the contract is an f.o.b. contract; and
(xiii) the price per kilolitre or per barrel for the oil or condensate; and
(xiv) if the price given under subparagraph (xiii) includes an amount of GST payable on the supply to which that price relates—the amount of GST, and the amount (less GST) payable for the supply; and
(xv) the due date for payment of the sale price under the contract; and
(xvi) the currency in which payment of the sale price is to be made (the currency of payment); and
(xvii) in a case where the currency of payment is not Australian dollars—the mid‑rate quoted by the Reserve Bank for that currency for the due date for payment of the sale price or, if that rate is not quoted for that date, the mid‑rate quoted by the Reserve Bank for that currency for the most recent day before that due date; and
(xviii) in a case where the currency of payment is not Australian dollars—the sale price under the contract (expressed as an amount of that currency and as an equivalent amount of Australian dollars); and
(xix) in a case where the currency of payment is not Australian dollars and the sale price under the contract includes an amount of GST payable on the supply to which that price relates—the amount of GST, and the amount (less GST) payable for the supply, expressed as amounts of that currency and as equivalent amounts of Australian dollars; and
(xx) the effective credit day for the transaction; and
(xxi) the number of credit days allowed under the contract; and
(xxii) the maximum indicator interest rate quoted by the Reserve Bank for the date of entry for home consumption of the oil or condensate or, if that rate is not quoted for that date, the maximum indicator interest rate quoted by the Reserve Bank for the most recent day before that date of entry;
Note: For subparagraphs (xiv) and (xix), the amount (less GST) payable for the supply will be an amount equal to the difference between the price referred to in that subparagraph and the amount of GST.
(d) if all or part of that oil or condensate is loaded on a ship under a contract other than an f.o.b. contract—the value applicable under paragraph 12(1)(b) to each type of cost, referred to in paragraph 12(1)(a), incurred by the producer under that contract together with sufficient particulars to enable the nature of that cost to be readily identified;
(e) if a value given under paragraph (d) is an amount mentioned in subparagraph 12 (1)(b)(ii) and the producer is entitled to an input tax credit for the acquisition to which that value relates:
(i) the amount of the input tax credit; and
(ii) the amount (less the input tax credit) incurred by the producer for the acquisition; and
(iii) a statement identifying the cost to which those amounts relate;
Note: The amount (less the input tax credit) incurred by the producer for the acquisition will be an amount equal to the difference between the value of the cost and the amount of the input tax credit.
(f) in a case where particulars of 2 or more types of cost are given in accordance with paragraph (d)—the total of those costs;
(g) if a total is given under paragraph (f) and the producer is entitled to one or more input tax credits for the acquisitions to which that total relates:
(i) the total amount of the input tax credits; and
(ii) the total amount (less the total amount of the input tax credits) incurred by the producer for those acquisitions;
Note: The total amount (less the total amount of the input tax credits) incurred by the producer for those acquisitions will be an amount equal to the difference between the total given under paragraph (f) and the total amount of the input tax credits.
(h) if all or part of that oil or condensate is delivered by pipeline under a contract:
(i) the name of the producer; and
(ii) the date of the contract; and
(iii) the number of the contract allocated by the producer; and
(iv) the purchaser’s name; and
(v) date of entry of the oil or condensate for home consumption; and
(vi) the quantity of the oil or condensate (expressed as an amount of kilolitres and as an equivalent amount of barrels); and
(vii) the price per kilolitre or per barrel for the oil or condensate; and
(viii) if the price given under subparagraph (vii) includes an amount of GST payable on the supply to which that price relates—the amount of GST, and the amount (less GST) payable for the supply; and
(ix) the due date for payment of the sale price under the contract; and
(x) the currency in which payment of the sale price is to be made (the currency of payment); and
(xi) in a case where the currency of payment is not Australian dollars—the mid‑rate quoted by the Reserve Bank for that currency for the due date for payment of the sale price or, if that rate is not quoted for that date, the mid‑rate quoted by the Reserve Bank for that currency for the most recent day before that due date; and
(xii) in a case where the currency of payment is not Australian dollars—the sale price under the contract (expressed as an amount of that currency and as an equivalent amount of Australian dollars); and
(xiii) in a case where the currency of payment is not Australian dollars and the sale price under the contract includes an amount of GST payable on the supply to which that price relates—the amount of GST, and the amount (less GST) payable for the supply, expressed as amounts of that currency and as equivalent amounts of Australian dollars; and
(xiv) the effective credit day for the contract; and
(xv) the number of credit days allowed under the contract; and
(xvi) the maximum indicator interest rate quoted by the Reserve Bank for the date of entry for home consumption of the oil or condensate or, if that rate is not quoted for that date, the maximum indicator interest rate quoted by the Reserve Bank for the most recent day before that date of entry.
Note: For subparagraphs (viii) and (xiii), the amount (less GST) payable for the supply will be an amount equal to the difference between the price referred to in that subparagraph and the amount of GST.
(3) For the purposes of subsection 6(1) of the Act, if the transaction concerns excisable crude petroleum oil or excisable condensate that:
(a) has been entered for home consumption in a month; and
(b) was produced from a limited production area;
the information that must be given to the Minister in respect of the transaction is the volume of the oil or condensate entered for home consumption by the producer in the month.
(4) If an oil producer or condensate producer is required by this section to give an amount, the producer must give:
(a) the actual amount; or
(b) if this is not reasonably practicable—the producer’s best estimate of the amount.
(5) If an oil producer or condensate producer gives an estimated amount, the producer must state that the amount is an estimate.
9
Transaction prices—manner of calculating
9 Transaction prices—manner of calculating
(1) For the purposes of paragraph 7(5)(a) of the Act, the transaction price for a quantity of excisable crude petroleum oil that is all or part of a quantity of oil (the delivered oil) loaded on a ship, or delivered by pipeline, under a contract of sale is:
(a) if the number of credit days allowed under the contract is no more than 30—the relevant delivery price of the delivered oil; or
(b) if the number of credit days allowed under the contract is more than 30—the result of deducting from the relevant delivery price of the delivered oil a credit allowance worked out under subsection (2) or (3), as the case requires.
Note 1: For the relevant delivery price, see section 10.
Note 2: For calculating the transaction price under this subsection, adjustments may have to be made to the sale price and the value of any allowable costs (see subsection (4)).
(a) if there is a maximum indicator interest rate for the date of entry for home consumption of the delivered oil—that maximum indicator interest rate; or
(b) otherwise—the maximum indicator interest rate quoted by the Reserve Bank for the most recent day before that date of entry.
number of days in the applicable year means:
(a) if under the contract the effective credit day and the due date for payment are in the same financial year—the number of days in that financial year; or
(b) if under the contract:
(i) the effective credit day is in one financial year and the due date for payment is in the next later financial year; and
(ii) the number of credit days allowed under the contract that happen in the first of those financial years is no more than 30;
the number of days in the second of those financial years.
IR has the same meaning as interest rate in subsection (2).
RDP means the relevant delivery price of the delivered oil.
(4) Despite subsection (1) or section 10, in calculating the transaction price for a quantity of excisable crude petroleum oil:
(a) if the price per kilolitre of the oil, or the sale price, under the contract of sale includes an amount of GST payable on the supply to which that price relates—that price is to be reduced by the amount of GST; and
(b) if:
(i) the value applicable under paragraph 12(1)(b) to a cost mentioned in paragraph 12(1)(a) is an amount mentioned in subparagraph 12(1)(b)(ii); and
(ii) the producer is entitled to an input tax credit for the acquisition to which that value relates;
that value is to be reduced by the amount of the input tax credit.
Note: No adjustment is made under this subsection for a value agreed under subparagraph 12(1)(b)(i) because adjustment has already been made in agreeing on that value—see subsection 12(2).
10
Transaction prices—relevant delivery price
10 Transaction prices—relevant delivery price
(1) The relevant delivery price, for a quantity of crude petroleum oil loaded on a ship, or delivered by pipeline, under a contract of sale is:
(a) for oil loaded on a ship under an f.o.b. contract or delivered by pipeline—the excisable quantity price for that oil; or
(b) otherwise—the excisable quantity price for that oil less the excisable quantity cost for that oil.
Note: For the excisable quantity price, see subsection (2). For the excisable quantity cost, see subsection (4).
total quantity overall means the total quantity of:
(a) excisable crude petroleum oil entered for home consumption during that month by the relevant oil producer; and
(b) any other crude petroleum oil mixed with that oil at the time of that entry.
(3) The applicable whole price, for a quantity of crude petroleum oil loaded on a ship, or delivered by pipeline, under a contract of sale, is the following:
(a) if:
(i) the contract is a contract, other than an f.o.b. contract or any other contract under which the quantity of oil sold is the quantity of oil loaded on a ship, under which a quantity of oil is loaded on a ship (the loaded quantity); and
(ii) the amount of the sale price under the contract is to be worked out by reference to the quantity of oil delivered under the contract (the delivered quantity); and
(iii) the loaded quantity exceeds the delivered quantity by more than 0.5% of the loaded quantity;
the result of the following formula (expressed as an amount of Australian dollars to the nearest cent):
Start formula open bracket Loaded quantity minus 0.005 times Loaded quantity close bracket times Price per kilolitre of oil under the contract end formula
(b) otherwise—the price indicated in the contract as the sale price, expressed as an amount of Australian dollars to the nearest cent.
Excisable quantity cost
(4) The excisable quantity cost, for all or part of a quantity of crude petroleum oil entered for home consumption during a month, is the amount (expressed as an amount of Australian dollars to the nearest cent) equal to the proportion of the applicable whole cost for that oil that is the same as the proportion:
Start formula start fraction Total quantity of excisable crude petroleum oil entered for home consumption during that month by the relevant oil producer over Total quantity overall end fraction end formula
where:
total quantity overall means the total quantity of:
(a) excisable crude petroleum oil entered for home consumption during that month by the relevant oil producer; and
(b) any other crude petroleum oil mixed with that oil at the time of that entry.
(5) The applicable whole cost, for a quantity of crude petroleum oil loaded on a ship under a contract of sale by the oil producer of that oil is the total of the values applicable under paragraph 12(1)(b) to any of the costs referred to in paragraph 12(1)(a) incurred by the relevant oil producer under the contract.
11
Transaction prices—condensate
11 Transaction prices—condensate
Sections 9 and 10 apply in relation to condensate as if:
(a) a reference in those sections to excisable crude petroleum oil were a reference to excisable condensate; and
(b) a reference in those sections to crude petroleum oil, or to oil, were a reference to condensate.
12
Transport costs
12 Transport costs
(1) For the purposes of paragraph 8(2)(d) and subsection 10(5):
(a) the costs are as follows:
(i) freight;
(ii) insurance;
(iii) demurrage at the port of destination not caused by any action of the producer;
(iv) lighterage at the port of destination;
(v) wharfage at the port of destination;
(vi) heating of the oil or condensate;
(vii) bunkers;
(viii) survey; and
(b) the value of a cost referred to in a subparagraph of paragraph (a) is:
(i) if the Minister, or an authorised person, and the producer agree on that value—the value as agreed; or
(ii) otherwise—the amount (if any) incurred in respect of that cost;
expressed as an amount of Australian dollars to the nearest cent.
(2) In agreeing on the value of a cost under subparagraph (1)(b)(i), the Minister, or the authorised person, and the producer are to:
(a) include in that value any amount of GST that would be payable on the supply to which that value relates; and
(b) exclude from that value the amount of any input tax credit to which the producer would be entitled for the acquisition to which that value relates.
(3) In this section:
authorised person means a person for the time being authorised by the Minister to exercise the Minister’s powers under section 7 of the Act.
13
Conversion into Australian dollars of amounts expressed in foreign currency
13 Conversion into Australian dollars of amounts expressed in foreign currency
For the purposes of paragraph 8(2)(d) and subsections 10(3) and (5), if either of the following is expressed in a foreign currency:
(a) an amount indicated in a contract of sale as the sale price;
(b) an amount incurred under a contract of sale in respect of a cost of a type referred to in paragraph 12(1)(a);
the exchange rate to convert that amount into Australian dollars is:
(c) if the Reserve Bank quotes a mid‑rate for the foreign currency for the due date for payment of the sale price under that contract—that mid‑rate; or
(d) otherwise—the mid‑rate quoted by the Reserve Bank for that currency for the most recent day before that due date.
14
Things done under the Petroleum Excise (Prices) Regulations 1988
14 Things done under the Petroleum Excise (Prices) Regulations 1988
A thing done:
(a) before the commencement of this instrument; and
(b) under a provision of the Petroleum Excise (Prices) Regulations 1988;
has effect after that commencement as if the thing had been done under the corresponding provision of this instrument.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
1 Name
1 Name
This instrument is the Petroleum Excise (Prices) Regulations 2018.
3 Authority
3 Authority
This instrument is made under the Petroleum Excise (Prices) Act 1987.
5 Definitions
5 Definitions
In this instrument:
acquisition, for an input tax credit, has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
applicable whole cost has the meaning given by subsection 10(5).
applicable whole price has the meaning given by subsection 10(3).
associate has the same meaning as in paragraph 1(k) of Schedule 1 to the Petroleum Revenue Act 1985.
condensate producer means an oil producer as defined in subsection 4(1) of the Act, as modified in accordance with subsection 5A(3) of the Act.
delivered by pipeline means the loading of oil or condensate into a pipeline otherwise than for the purpose of loading on a ship.
due date, for payment of the sale price under a contract, means:
(a) if a period is provided under the contract within which that payment is to be made—the last day of that period; or
(b) otherwise—the day identified under the contract for that payment.
effective credit day, for a transaction comprising the sale under a contract of a quantity of crude petroleum oil or condensate, means the day immediately before any period allowed under the contract for payment of the sale price.
excisable quantity cost has the meaning given by subsection 10(4).
excisable quantity price has the meaning given by subsection 10(2).
f.o.b. contract means a contract for the sale of a quantity of crude petroleum oil by the oil producer, or condensate by the condensate producer, under which:
(a) the oil or condensate is to be loaded on a ship or ships; and
(b) the producer bears none of the costs of the following:
(i) freight;
(ii) insurance;
(iii) demurrage at the port of destination;
(iv) lighterage at the port of destination;
(v) wharfage at the port of destination;
(vi) heating of the oil or condensate;
(vii) bunkers;
for the transport of that oil or condensate to the purchaser after the oil or condensate is loaded.
Set the manner of calculating transaction prices for excisable crude petroleum oil (s 9), including when and how to apply a credit allowance where credit days exceed 30 (s 9(1)-(3)), and adjustment rules to remove GST and to reduce transport cost values by input tax credits where applicable (s 9(4)).
Define the “relevant delivery price”, the excisable quantity price, the excisable quantity cost and the applicable whole price and cost for use in the transaction price calculations (s 10). The applicable whole price can be the contract price or, where loaded quantity exceeds delivered quantity by more than 0.5%, a formula-based adjustment (s 10(3)(a)).
Apply the same mechanics to condensate (s 11).
Specify which transport costs may be taken into account and how their values are determined, including that a value may be the agreed value between Minister (or an authorised person) and the producer or, failing agreement, the amount actually incurred (s 12(1)-(2)). When agreeing values the parties must include any GST but exclude input tax credits (s 12(2)).
Prescribe conversion of foreign‑currency amounts into Australian dollars for relevant provisions using the Reserve Bank mid‑rate for the due date or the most recent prior day (s 13).
Save things done under the Petroleum Excise (Prices) Regulations 1988 as if done under this instrument (s 14).
The instrument is primarily regulatory detail that operationalises how prices and costs are to be measured and reported for the purposes of the petroleum excise framework established in the Act. It names who must provide information, what precise data items and calculations are required, which variables come from Reserve Bank quotations, and how to treat GST and input tax credits in valuations.
Main concepts
The instrument revolves around a small set of interlocking technical concepts that determine the quantum used in excise calculations. These concepts are defined in the Regulations themselves or by reference to other statutes. Key concepts and their mechanics are:
Sale price and supply: “Sale price” is the total amount payable to a producer under a contract for a given quantity of oil or condensate (s 5, sale price). The instrument treats amounts that include GST differently from amounts that do not, requiring the GST amount and the amount less GST to be reported (s 8(2)(xiii)-(xiv), (h)(vii)-(viii)).
Excisable quantity price and excisable quantity cost: The excisable quantity price is the portion of the applicable whole price that corresponds to the proportion of excisable product entered for home consumption to the total quantity overall (s 10(2)). The excisable quantity cost is the proportionate part of the applicable whole cost (s 10(4)). Both are expressed in Australian dollars to the nearest cent.
Applicable whole price and cost: For most contracts the applicable whole price is the price indicated in the contract, converted to Australian dollars where necessary (s 10(3)(b), s 13). An exception applies where a contract loads a quantity (loaded quantity) on a ship and the delivered quantity is less, and the loaded quantity exceeds the delivered quantity by more than 0.5 per cent of the loaded quantity. In that case, the applicable whole price is a formula: (loaded quantity minus 0.5% of loaded quantity) times the price per kilolitre (s 10(3)(a)). The applicable whole cost for oil loaded on a ship under a producer’s contract is the total of the values applicable to the transport and related costs listed in s 12(1)(a), as determined under s 12(1)(b).
Relevant delivery price: The “relevant delivery price” used in the transaction price calculation is the excisable quantity price for f.o.b. contracts and pipeline deliveries, and the excisable quantity price minus the excisable quantity cost otherwise (s 10(1)). Thus, whether transport and related costs are deducted depends on the contract type.
Transaction price: The transaction price is the relevant delivery price for contracts allowing no more than 30 credit days (s 9(1)(a)). For contracts allowing more than 30 credit days, a credit allowance is deducted from the relevant delivery price using a formula tied to the number of credit days in excess of 30, the applicable interest rate and the number of days in the applicable financial year or years (s 9(1)(b), (2)-(3)). The credit allowance formula requires the maximum indicator interest rate drawn from Reserve Bank reports (s 5, maximum indicator interest rate).
Credit days, effective credit day and number of credit days allowed: The Regulations define “effective credit day” as the day immediately before any period allowed under the contract for payment (s 5). “Number of credit days allowed” is the number of days in any period within which payment of the sale price is to be made; importantly, the contract need not express the period in days for this definition to apply (s 5). These definitions feed into the computation of the credit allowance in s 9.
Mid‑rate and maximum indicator interest rate: Currency conversions use the Reserve Bank mid‑rate as at 4 pm ACT legal time on the relevant day (s 5, mid‑rate; s 13). The maximum indicator interest rate for a day is the highest of the range of rates per annum quoted by the Reserve Bank from major trading banks for overdrafts of $100,000 or more (s 5, maximum indicator interest rate).
Transport costs and valuation rules: Section 12 lists specific transport and related costs (freight, insurance, demurrage not caused by producer, lighterage, wharfage, heating, bunkers, survey) and sets valuation rules: agreed values between Minister/authorised person and producer will be used where agreed, otherwise the producer’s actual incurred amounts are used (s 12(1)(a)-(b)). In agreeing values, GST is included and input tax credits are excluded (s 12(2)).
Reporting obligations: Section 8 specifies an extensive catalogue of information producers must give to the Minister in respect of each transaction entered for home consumption in a month that was not from a limited production area (s 8(1)-(2)). This includes contract metadata, quantities in two units, currency of payment, Reserve Bank mid‑rate at due date for foreign currencies, effective credit day, number of credit days, GST amounts and maximum indicator interest rate for the date of entry for home consumption.
VOLWARE commencement dates and oil producing regions: Sections 6 and 7 supply tables matching named oil producing regions and production areas to VOLWARE commencement dates. For several items the date is fixed (for example, condensate entries: 13 May 2008 for multiple items, s 7(6) Items 1-6), while for others the date is a trigger tied to production quantities or to cessation of excise exemption under the Excise Tariff Act 1921 (s 6 note; s 7 note).
These concepts are engineered so the statutory transaction price reflects the contractual sale price adjusted for GST and input tax credits, adjusted for identifiable transport costs where appropriate, and adjusted for credit extended to buyers beyond a 30‑day baseline using a Reserve Bank‑based interest rate. The Regulations set the precise data items, formulae and external inputs for those adjustments.
Who it affects
The instrument directly affects a narrow set of market actors and decision makers. Primary affected parties are:
Oil producers and condensate producers. The instrument repeatedly addresses “the relevant oil producer” and “the condensate producer” (see s 5 definitions and numerous operative provisions). Producers have principal duties: they must supply detailed transaction-level information to the Minister for transactions entered for home consumption in a month that were not produced from a limited production area (s 8(1)-(2)). Producers must calculate transaction prices for excisable quantities using the formulas in ss 9-11 and apply the valuation rules in s 12 and conversion rules in s 13.
Purchasers of crude petroleum oil and condensate. The Regulations require producers to report purchaser names and contract data (s 8(2)(iv), (iii)). Purchaser contractual terms affect how the transaction price is calculated, in particular the contract type (f.o.b. or not), the loaded versus delivered quantities, and the credit terms (number of credit days allowed). Thus purchasers’ negotiated payment terms, recognition of GST, and choice of currency impact excise calculations indirectly.
The Minister and authorised persons. The Minister receives the data specified in s 8 and, or an authorised person, is empowered to agree on values for transport costs with producers under s 12(1)(b)(i). The Minister or authorised person is therefore a decision maker in valuation disputes or negotiations on transport cost values.
Associates and related parties. The definition of associate in s 5 is tied to the Petroleum Revenue Act 1985 Schedule 1, paragraph 1(k). The presence of associates in a transaction is an information item required to be reported (s 8(2)(a)). Associate relationships therefore bear on reporting and may be relevant to any price scrutiny under the Act.
The Reserve Bank. The Regulations rely on Reserve Bank quotations for two inputs: the mid‑rate for foreign currency conversions and the reports used to derive the maximum indicator interest rate (s 5, mid‑rate and maximum indicator interest rate). Reserve Bank published rates therefore feed the statutory calculations.
Persons responsible for loading and shipping. Where oil is loaded on ships, the Regulations require a number of shipping details to be reported: ship name, bill of lading number, quantity loaded, and whether the contract is f.o.b. (s 8(2)(vii)-(xii)). Those operational details are used to derive applicable whole price, excisable quantity price and excisable quantity cost.
Tax authorities (implicitly). While the instrument does not itself create or allocate tax liabilities, it prescribes the inputs and computations used for petroleum excise as provided in the Act. The data reporting requirements and computed transaction prices will be used by the Minister administering the petroleum excise framework.
Indirectly affected parties include freight and service providers whose costs may be reported and accounted for under s 12, banks whose interest rates are reported to the Reserve Bank and thereby affect the maximum indicator interest rate, and any counterparties to contracts that determine credit days, currency of payment and other contract terms that feed into the excise calculation.
The Regulations also distinguish transactions entered for home consumption and transactions produced from limited production areas (s 8(1)-(3)). Transactions from limited production areas require only the volume entered for home consumption to be reported for the relevant month (s 8(3)). This means producers operating in limited production areas face a materially narrower reporting obligation compared with producers operating elsewhere.
Who bears the compliance costs. Producers carry the operational compliance burden: assembling the detailed transaction-level information listed in s 8, calculating excisable quantity prices and costs under ss 9-11, applying credit allowance formulas in s 9, and documenting and supporting any agreed transport cost valuations under s 12. The Minister or authorised person will need processes to receive, verify and, where necessary, negotiate agreed values for costs.
Key duties and rights
The Regulations impose precise duties on producers and grant specific procedural opportunities and decision rights to the Minister and authorised persons. Key duties for producers are:
Reporting duty for certain transactions: Producers must give the information listed in s 8(2) to the Minister in respect of each transaction concerning excisable crude petroleum oil or excisable condensate that (a) has been entered for home consumption in a month and (b) was not produced from a limited production area (s 8(1)-(2)). The required dataset is comprehensive: association status, loading/delivery mode, contract identifiers, purchaser details, domestic/export marker, destination where specified, ship and bill of lading identifiers, dates of entry, quantities in kilolitres and barrels, contract type (f.o.b. or otherwise), price per kilolitre or barrel, GST breakdowns where included, due date for payment, currency of payment, Reserve Bank mid‑rate where the currency is foreign, sale price in foreign currency and equivalent AUD where applicable, effective credit day, number of credit days allowed, and the maximum indicator interest rate on the date of entry (s 8(2)(a)-(xxii), (d), (h)). For contracts not loaded on a ship, parallel reporting requirements appear in s 8(2)(h).
Estimation and disclosure: Where actual amounts cannot reasonably be given, producers may provide their best estimate and must state that the amount is an estimate (s 8(4)-(5)). This creates an obligation to label estimated figures.
Calculation of transaction price: Producers must apply the manner of calculating the transaction price set out in s 9 and the relevant delivery price mechanics in s 10 (s 9, s 10). That includes the credit allowance calculation where credit days exceed 30, the adjustment to prices to remove GST where included, and the reduction of certain cost values by input tax credits if those costs are of a type described in s 12 and the producer is entitled to input tax credits (s 9(4), s 12(2)).
Value provision for transport costs: When a contract is not an f.o.b. contract and oil is loaded on a ship under the contract, producers must provide the value applicable under paragraph 12(1)(b) to each type of cost listed in s 12(1)(a), together with particulars identifying the nature of the cost (s 8(2)(d)). Where a value is an amount mentioned in s 12(1)(b)(ii) and the producer is entitled to an input tax credit for the acquisition to which that value relates, the producer must also provide the amount of the input tax credit and the amount less the input tax credit (s 8(2)(e)).
Rights and procedural points for the Minister and authorised persons:
Agreement on cost values: The Minister, or an authorised person, may agree a value with the producer for any cost listed in s 12(1)(a). If agreement occurs, that agreed value is to be used (s 12(1)(b)(i)). Otherwise, the amount actually incurred is to be used (s 12(1)(b)(ii)). When agreeing a value, the Minister or authorised person and producer must include GST in the agreed value and exclude any input tax credit the producer would be entitled to (s 12(2)). The Regulations define “authorised person” as someone authorised by the Minister to exercise the Minister’s powers under s 7 of the Act (s 12(3)).
Use of Reserve Bank rates: The Regulations delegitimise alternative currency conversion inputs by specifying the Reserve Bank mid‑rate as the conversion rate (s 13) and specifying the Reserve Bank reports as the source for the maximum indicator interest rate (s 5). This places the Reserve Bank’s published data at the centre of statutory calculations.
Other specific duties and rights:
Treatment of GST and input tax credits: The Regulations require removal of GST from sale prices where included for transaction price calculations (s 9(4)(a)). They also require deductions of input tax credits from transport cost values where the value under s 12(1)(b) is an amount mentioned in s 12(1)(b)(ii) and the producer is entitled to an input tax credit (s 9(4)(b)). In valuation agreements under s 12(2) the Minister and authorised person must include GST and exclude input tax credits.
Reporting compressions for limited production areas: If the transaction concerns excisable product produced from a limited production area, the information required to be given to the Minister is limited to the volume entered for home consumption in the month (s 8(3)).
Estimation permissibility: Producers may give a best estimate where actual amounts are not reasonably practicable, but must declare it an estimate (s 8(4)-(5)).
The instrument does not itself create express rights of appeal or objection to Ministerial valuations in the text provided. It does, however, create a procedural step where values can be agreed, which gives producers a negotiation point for transport cost valuations. The Minister is the recipient of the data required by s 8 and thus controls the administrative use of those data under the Act.
Penalties and enforcement
The Regulations supplied do not themselves set out specific offences, penalty amounts, enforcement mechanisms, or administrative sanctions. The instrument is silent on express penalties or prescribed sanctions. Its authority is stated as being under the Petroleum Excise (Prices) Act 1987 (s 3), which is complementary legislation. Consequently:
The Regulations impose obligations (for example the reporting duty in s 8 and calculation duties in ss 9-11) but do not identify criminal or civil penalties within the instrument text. Any legal consequences for non‑compliance, enforcement routes, or penalties must be found in the parent Act or other applicable laws, as the Regulations do not specify them. The instrument itself is a schedule of technical rules and forms part of the framework of the Act.
The Minister and authorised persons are given an operational role in agreeing values for transport costs (s 12(1)(b)(i)). The Regulations define “authorised person” for that purpose (s 12(3)). The presence of negotiation and agreement mechanisms suggests administrative discretion, but the text does not describe review rights, internal review procedures, or external appeal mechanisms.
The Regulations require producers to rely on external data sources such as Reserve Bank mid‑rates and maximum indicator interest rates (s 5, s 13). Use of those specified data sources narrows dispute points to the factual correctness of submitted data and the application of the formulae in ss 9-10, rather than the choice of rate.
For transitional matters, the Regulations preserve acts done under the previous Petroleum Excise (Prices) Regulations 1988 as if done under the present instrument (s 14). This is a savings clause rather than an enforcement tool.
Practically, therefore, enforcement and penalties for failure to supply the information required in s 8, or for supplying false or misleading information, will depend on the Act and other enforcement statutes or regulations that are not included in the instrument text. Practitioners should consult the Petroleum Excise (Prices) Act 1987 and other relevant tax and administrative laws to identify the statutory provisions that specify offences, penalties, or administrative sanctions applicable to non‑compliance with these Regulations.
How it interacts with other laws
The Regulations operate as a subordinate instrument within a statutory network. The text expressly cross‑references and depends on provisions of other legislation. The principal interactions are:
Petroleum Excise (Prices) Act 1987: The instrument is made under the Act (s 3). Many defined terms in the instrument refer back to definitions in the Act. For example, s 6 and s 7 state that they apply “for the purposes of the definitions of oil producing region, production area and VOLWARE commencement date in subsection 4(1) of the Act” (s 6(1), s 7(1)). The Regulations therefore operationalise those definitions by listing production areas and VOLWARE commencement dates.
A New Tax System (Goods and Services Tax) Act 1999: The instrument imports the statutory meanings of acquisition, GST, input tax credit and supply by reference to s 195‑1 of the GST Act (s 5 definitions). It uses those imported meanings in valuation and reporting provisions, for example the treatment of GST in sale prices (s 9(4)(a)) and the treatment of input tax credits when valuing costs (s 12(2), s 9(4)(b); s 8(2)(e), (g)).
Petroleum Revenue Act 1985: The instrument adopts the same meaning of associate as in paragraph 1(k) of Schedule 1 to the Petroleum Revenue Act 1985 (s 5). That cross‑reference means that any legal effects tied to associate relationships in the Act are connected to the Schedule 1 definition.
Excise Tariff Act 1921: The tables in ss 6 and 7 contain notes that tie VOLWARE commencement dates for several items to the date production ceases to be exempt from duties of excise under the Excise Tariff Act 1921 (s 6 note; s 7 note). This creates a direct link between excise exemption status under the Excise Tariff Act 1921 and the triggering of VOLWARE commencement dates under these Regulations.
Reserve Bank quotations and reporting: The Regulations require use of Reserve Bank published mid‑rates and information used to determine the maximum indicator interest rate (s 5, s 13). Specifically, “mid‑rate” is the rate quoted by the Reserve Bank as at 4 pm ACT legal time on the relevant day (s 5) and the maximum indicator interest rate is derived from Reserve Bank reports on overdraft rates quoted by major trading banks (s 5). Thus the Reserve Bank’s public data are incorporated into statutory calculations.
Predecessor Regulations: The instrument contains a savings clause validating things done under the Petroleum Excise (Prices) Regulations 1988 as if done under this instrument (s 14). That clause ensures continuity of administrative acts and records without requiring re‑performance.
Because the Regulations rely on and reference definitions, tax concepts and external data from other statutes and institutions, their application typically requires concurrent consideration of those instruments. For example, computing GST adjustments requires applying the GST Act definitions of supply and input tax credit. Determining whether a VOLWARE commencement date has been triggered in some items requires checking whether production is still exempt under the Excise Tariff Act 1921. Determining applicable Reserve Bank mid‑rates requires consulting the Reserve Bank’s published rates as at the specified times.
The Regulations do not explicitly amend or override provisions of the other statutes they reference. Instead, they depend on and adopt defined concepts from those statutes. Any legal tensions or interpretive questions at the boundary will therefore be resolved by reading the subordinate Regulations in the context of the parent Act and the other referenced statutes.
Amendment history
The instrument identifies itself as the Petroleum Excise (Prices) Regulations 2018 in s 1. It does not include an express commencement date clause in the text provided. However, s 14 provides a transitional saving stating that things done under the Petroleum Excise (Prices) Regulations 1988 before the commencement of this instrument are to be treated as if done under the corresponding provision of this instrument (s 14). That indicates the 2018 instrument replaced the 1988 Regulations and preserves administrative acts taken under the prior instrument.
The Regulations incorporate earlier legal relationships through cross‑references. They adopt definitions from the Petroleum Revenue Act 1985 and the GST Act 1999 (s 5), and link certain VOLWARE commencement dates to events under the Excise Tariff Act 1921 (s 6 note; s 7 note). Beyond these embedded cross‑references, the instrument does not list amendments to itself, nor does it provide an amendment timeline or repeals in the text supplied. The only explicit historical linkage present is the saving of things done under the 1988 Regulations (s 14).
Practitioners seeking a complete amendment history or the instrument’s commencement date must consult the Federal Register of Legislation or the legislative instrument’s registry entry to determine commencement and any subsequent amendments made since the instrument’s drafting. The instrument as supplied does not record changes over time, nor does it recite prior amendment instruments.
The effect of s 14 is practical: any action, agreement, valuation or return made under the 1988 Regulations that existed before this instrument’s commencement continues in legal effect and is treated as if done under the corresponding provision of this instrument. This avoids administrative disruption and the need to re‑submit old returns because of the change in subordinate regulations.
Litigation history
The Regulations text contains no litigation history, no reference to judicial decisions, and names no cases. There are no clauses summarising contested interpretations, nor are there citations to prior rulings. The instrument therefore presents no statutory record of litigation in its text.
For readers interested in whether particular aspects of these Regulations have been subject to judicial review, tax litigation or administrative disputes, the instrument does not provide that information. Any litigation history would need to be sought in external case law databases, tribunal records, or records of proceedings under the Petroleum Excise (Prices) Act 1987 or related taxation statutes. The Regulations themselves neither assert nor summarise any adjudicative treatment.
Given the technical and formulaic nature of the instrument, potential sources of litigation (not asserted by the instrument but inferable as plausible dispute points from the provisions) include disagreement about: the correct application of the credit allowance formula in s 9, the correct identification of applicable whole price versus loaded/delivered quantity adjustments in s 10(3), the valuation of transport costs and the Minister/authorised person’s exercise of valuation agreement powers under s 12(1)(b)(i), and the correct conversion of foreign currency amounts using Reserve Bank mid‑rates (s 13). The Regulations do not themselves report whether such matters have been litigated.
Gotchas
The Regulations are compact but contain multiple detailed technical rules and external data dependencies that create operational hazards for producers and advisers. The principal gotchas are:
Extensive and specific reporting fields. Section 8 requires a wide range of discrete data items for each transaction entered for home consumption that was not produced from a limited production area (s 8(1)-(2)). Missing any field in the long list , from ship and bill of lading numbers to the Reserve Bank mid‑rate quoted for the due date , will mean reporting does not comply strictly with the Regulation’s prescription. Producers should not assume an abbreviated return will suffice.
Dual‑unit quantity reporting. Quantities must be reported in both kilolitres and barrels (s 8(2)(x), (xi), (h)(vi)). Failing to convert quantities accurately between units may produce arithmetic mismatches when allocating portions of applicable whole prices to excisable quantities (s 10(2), (4)).
Currency conversion timing and method. Where the currency of payment is not Australian dollars, the Regulations require the mid‑rate quoted by the Reserve Bank for the due date for payment, or the most recent prior day if that date is not quoted (s 8(2)(xvii), (xviii), s 13). The instrument defines mid‑rate as the Reserve Bank quote at 4 pm ACT legal time for the day (s 5). Practically, this requires producers to capture the Reserve Bank’s rate at a specific time and to ensure they select the correct date (due date) for conversion. Mistaking the relevant date or the Reserve Bank source will result in an incorrect AUD conversion.
Credit allowance complexity across financial years. The credit allowance formulas in s 9(2) and s 9(3) hinge on whether the effective credit day and the due date fall within the same financial year or span two financial years, and whether the number of credit days falling in the first year exceeds 30 in the spanning case (s 9(2)-(3)). Calculating “number of days in the applicable year” requires determining the financial year boundaries that apply to the effective credit day and the due date under the contract. Misclassifying the applicable year for the formula will change the denominator in the interest prorating and therefore the credit allowance.
Definition and counting of credit days. The Regulations define number of credit days allowed as the number of days in any period within which payment is to be made; the contract need not specify the duration in days (s 5). This permits contractual phrasing in weeks or months; practitioners must convert such periods into days for the purposes of s 9. Errors in converting or counting calendar days, or in identifying the effective credit day (s 5), will alter the application of the credit allowance.
More than 30 days threshold is pivotal. The baseline of 30 credit days determines whether a credit allowance applies at all. Contracts that are structured with credit days just over 30 will trigger a potentially significant credit allowance deduction (s 9(1)). Contract negotiators that attempt to avoid the allowance may structure terms to stay at or below 30 days, which can affect commercial negotiation.
Transport cost valuation negotiation point. For non‑f.o.b. contracts the producer must supply values for the types of transport costs in s 12(1)(a) together with particulars (s 8(2)(d)). Section 12(1)(b) allows the Minister or an authorised person to agree a value with the producer, otherwise the amount incurred is used. When values are agreed, the Minister and producer must include GST and exclude any input tax credits (s 12(2)). Producers should be prepared to produce supporting invoices and GST/input tax credit calculations and to negotiate with the Minister or authorised person. The requirement to include GST but exclude input tax credits in agreed values is a specific arithmetic rule that can produce counterintuitive results if not handled carefully.
Loaded versus delivered quantity adjustment threshold. Where loaded quantity exceeds delivered quantity by more than 0.5 per cent of loaded quantity, the applicable whole price is calculated using the formula in s 10(3)(a)(iii). This 0.5 per cent threshold is precise and potentially decisive for contracts where evaporation, theft, cargo loss or measurement differences result in small variances between loaded and delivered volume measurements. Small measurement errors could cross the threshold and change the applicable whole price computation materially.
Different obligations for limited production areas. Transactions produced from limited production areas only require the volume entered for home consumption to be reported for the month (s 8(3)). This narrow requirement contrasts with the much larger dataset required for other transactions in s 8(2). Misclassifying production area status can lead either to under-reporting or over-reporting.
Interaction between GST and input tax credits. The Regulations require removal of GST from sale prices where included for transaction price calculation purposes (s 9(4)(a)). They also require reductions in cost values by input tax credits when the value used is an amount under s 12(1)(b)(ii) and the producer is entitled to input tax credits (s 9(4)(b); s 8(2)(e), (g)). These provisions require careful accounting: when a cost includes GST and the producer is eligible for an input tax credit, the net value for excise computation is the incurred amount less the input tax credit.
Requirement to state estimates. If a producer gives an estimated amount under s 8(4), the producer must state that the amount is an estimate (s 8(5)). Failure to flag an estimate could create factual disputes as to the accuracy of reported data.
Reliance on external data sources. The Regulations embed Reserve Bank data and banks’ reported overdraft rates into statutory calculations (s 5, s 13). If Reserve Bank quotations are unavailable for a specific date, the Regulations require using the most recent prior day’s quotation. Producers need robust procedures to capture, archive and apply the correct Reserve Bank data.
No penalty text in the Regulations. The absence of penalty provisions in the Regulations could lead to misconceptions about compliance risk. Producers should not infer that non‑compliance is inconsequential. Penalties or enforcement powers are likely located in the Act or in other applicable statutes, which must be checked.
Each of these items represents a practical risk that requires system-level controls, precise record keeping, and attention during contract negotiation and invoicing.
How to comply
Complying with the Regulations requires operationalising the reporting and calculation rules into a repeatable process. The following practical steps, grounded in the instrument’s provisions, set out a compliance pathway producers should follow.
Identify which transactions are in scope.
For each transaction determine whether it has been entered for home consumption in a month and whether the product was produced from a limited production area (s 8(1)-(3)). If produced from a limited production area, the reporting obligation is limited to the volume entered for home consumption for the month (s 8(3)).
Assemble the required data fields per transaction.
For in‑scope transactions not from a limited production area, compile all items listed in s 8(2). This includes association status, whether loaded on ship or delivered by pipeline, and if loaded on a ship the contract date, contract/shipment number, purchaser name, domestic/export marker, destination where specified, ship name, bill of lading number, date of entry for home consumption, quantities in kilolitres and barrels, contract type (f.o.b. or not), price per kilolitre or per barrel, GST amounts and amount less GST where included, due date for payment, currency of payment, Reserve Bank mid‑rate for the due date or most recent prior day where necessary, sale price in foreign currency and AUD equivalent where applicable, effective credit day, number of credit days allowed and the maximum indicator interest rate for the date of entry (s 8(2)(a)-(xxii), (d), (h)). For pipeline deliveries, similar fields are required under s 8(2)(h).
Record and reconcile quantities in both units.
Record quantities in both kilolitres and barrels as required (s 8(2)(x), (xi), (h)(vi)). Ensure consistent unit conversion and tie those quantities to the total quantity overall used in the prorating formulas in s 10(2) and s 10(4).
Calculate applicable whole price and applicable whole cost.
For each contract, determine whether s 10(3)(a) applies. If the contract is not an f.o.b. contract but loads a quantity and the loaded quantity exceeds the delivered quantity by more than 0.5% of the loaded quantity, apply the formula in s 10(3)(a). Otherwise, use the price indicated in the contract (s 10(3)(a)-(b)).
For applicable whole costs, for any quantity loaded on a ship under the producer’s contract, total the values applicable under paragraph 12(1)(b) to the costs in s 12(1)(a) (s 10(5)).
Determine excisable quantity price and cost.
Use s 10(2) and s 10(4) to allocate the applicable whole price and applicable whole cost pro rata to the excisable quantity entered for home consumption relative to the total quantity overall.
Determine the relevant delivery price.
Apply s 10(1): use the excisable quantity price for f.o.b. contracts and pipeline deliveries; for other contracts, deduct the excisable quantity cost from the excisable quantity price.
Apply the transaction price rules.
If the number of credit days allowed under the contract is no more than 30, the transaction price is the relevant delivery price (s 9(1)(a)).
If credit days exceed 30, calculate the credit allowance per s 9(2) or s 9(3) as applicable using the appropriate interest rate (the maximum indicator interest rate from Reserve Bank reporting, see s 5) and the correct number of days in the applicable year(s). Deduct the credit allowance from the relevant delivery price to obtain the transaction price (s 9(1)(b), (2)-(3)).
Remove any GST included in a sale price for purposes of these calculations (s 9(4)(a)). Reduce cost values by applicable input tax credits where the value is an amount incurred and the producer is entitled to an input tax credit (s 9(4)(b)).
Capture and apply Reserve Bank quotations.
For currency conversions, capture the Reserve Bank mid‑rate as at 4 pm ACT legal time for the due date or the most recent prior day if not quoted (s 5, s 13). For the maximum indicator interest rate, capture the highest rate quoted by the Reserve Bank on the relevant day as provided in s 5.
Prepare transport cost breakdowns and supporting documentation.
For non‑f.o.b. contracts where oil is loaded on a ship, provide values and particulars for each transport cost type in s 12(1)(a) as required by s 8(2)(d). Maintain invoices, freight bills, insurance policies or other supporting documents that substantiate incurred amounts or support a negotiated agreed value with the Minister or an authorised person.
Negotiate agreed values where appropriate.
If a dispute or valuation issue arises, use the power in s 12(1)(b)(i) to reach agreement with the Minister or authorised person. Remember that in any agreed valuation the value must include GST and exclude input tax credits (s 12(2)). Keep written records of any agreed value and the rationale.
Label estimates clearly.
Where actual amounts cannot reasonably practicably be given, provide the best estimate and state that the amount is an estimate as required by s 8(4)-(5). Keep contemporaneous notes explaining why actual amounts were not reasonably practicable to obtain.
Implement internal controls and archival processes.
Record the due date for payment, effective credit day, number of credit days allowed and the date of entry for home consumption for each transaction to support the credit allowance computation (s 5; s 8(2)(xv), (xx), (xxi)). Archive Reserve Bank rate data corresponding to the due date and date of entry used in each computation so calculations can be audited.
Monitor VOLWARE commencement triggers for production areas.
Check the VOLWARE commencement date tables in ss 6 and 7 for the production areas relevant to your operations. For several items the dates are fixed (for example, condensate items in s 7(6) mostly reference 13 May 2008) and for others they are triggered by production volumes or by cessation of an excise exemption under the Excise Tariff Act 1921 (s 6 note; s 7 note). Ensure correct classification of production area status, as this affects reporting obligations under s 8.
Liaise with tax and legal advisers.
Because the Regulations cross‑reference definitions and tax treatment in other statutes (GST Act, Petroleum Revenue Act, Excise Tariff Act), coordinate with specialists to ensure correct treatment of GST, input tax credits and any excise exemption matters impacting VOLWARE commencement dates.
Verify no unmet obligations under the Act.
The Regulations do not specify penalties or enforcement. Verify under the Petroleum Excise (Prices) Act 1987 and relevant taxation statutes whether additional procedural steps, lodgement formats, submission channels or deadlines apply.
Operational implementation will typically require an IT and record‑keeping workflow to capture contractual metadata, ship and bill details, currency and Reserve Bank rates, GST and input tax credit calculations, and the arithmetic for prorating applicable whole prices and computing credit allowances under s 9. Produce templates or automated worksheets for the key formulas in s 9 and s 10, and retain contemporaneous evidence to support each reported figure.
Compliance also means anticipating negotiation points with the Minister or authorised persons over transport cost valuations under s 12 and ensuring staff are trained on the precise arithmetic rules about inclusion of GST and exclusion of input tax credits in agreed values (s 12(2)).
Section 8Transactions entered into—prescribed information for giving to the Minister
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
input tax credit has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
maximum indicator interest rate, for a day, means the highest of the range of rates of interest per annum current on that day quoted by the Reserve Bank, on the basis of reports by each bank regarded by the Reserve Bank as a major trading bank operating in Australia in respect of overdrafts of $100,000 or more.
mid‑rate, for a foreign currency for a day, is the rate, expressed as an amount in that currency that is equivalent to the Australian dollar, quoted by the Reserve Bank as at 4 pm (by legal time in the Australian Capital Territory) on that day.
number of credit days allowed, under a contract for the sale of crude petroleum oil or condensate, means the number of days in any period within which payment of the sale price is to be made under the contract. The contract need not specify the duration of that period in terms of days.
Note: Example 1: That period specified in contract A is 21 days. Paragraph 9(1)(a) would apply to the contract as no more than 30 credit days are allowed under the contract.
Note: Example 2: That period specified in contract B is 5 weeks. Paragraph 9(1)(b) would apply to the contract as more than 30 credit days are allowed under the contract.
relevant delivery price has the meaning given by subsection 10(1).
sale price:
(a) for a contract for the sale of a quantity of crude petroleum oil by an oil producer, means the total amount payable to the producer under that contract for that quantity of oil; and
(b) for a contract for the sale of a quantity of condensate by a condensate producer, means the total amount payable to the producer under that contract for that quantity of condensate.
supply, for an amount of GST payable, has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
the Act means the Petroleum Excise (Prices) Act 1987.
6 Oil producing regions, production areas and VOLWARE commencement dates—stabilised crude petroleum oil
6 Oil producing regions, production areas and VOLWARE commencement dates—stabilised crude petroleum oil
(1) This section applies for the purposes of the definitions of oil producing region, production area and VOLWARE commencement date in subsection 4(1) of the Act, to the extent that those definitions relate to stabilised crude petroleum oil.
(2) If only one production area is mentioned in an item of the table in subsection (5), that production area is the whole of the oil producing region mentioned in the table item.
(3) If more than one production area is mentioned in an item of the table in subsection (5), those production areas are each part of, and together make up, the oil producing region mentioned in the table item.
(4) The date specified in an item of the table in subsection (5) is the VOLWARE commencement date for excisable crude petroleum oil obtained from the oil producing region mentioned in the table item.
(5) The table is as follows:
<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><thead><tr><td colspan="4" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Oil producing regions, production areas and VOLWARE commencement dates</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Item</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Oil producing region</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Production areas</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>VOLWARE commencement date</span></p></td></tr></thead><tbody><tr><td style="width:8.58%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Jackson</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Jackson</span></p></td><td style="width:30.48%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span><span> </span><span>November 1990</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Thevenard Island</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) Saladin;</span></p><p class="Tablea"><span>(b) Roller/Skate</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which total production of stabilised crude petroleum oil in the production areas exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Varanus Island</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Harriet/Lenita</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which production of stabilised crude petroleum oil in the production area exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>North West Shelf project area</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) Wanaea;</span></p><p class="Tablea"><span>(b) Cossack;</span></p><p class="Tablea"><span>(c) Lambert/Hermes</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which total production of stabilised crude petroleum oil in the production areas exceeds 4767.3 megalitres</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Legendre</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Legendre</span></p></td><td style="width:30.48%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Date on which production of stabilised crude petroleum oil in the production area exceeds 4767.3 megalitres</span></p></td></tr></tbody></table>
Note: The VOLWARE commencement date for items 2, 3, 4 or 5 is the date on which production from the fields containing the production areas specified in the table item ceases to be exempt from duties of excise under the Excise Tariff Act 1921.
7 Oil producing regions, production areas and VOLWARE commencement dates—condensate
7 Oil producing regions, production areas and VOLWARE commencement dates—condensate
(1) This section applies for the purposes of the definitions of oil producing region, production area and VOLWARE commencement date in subsection 4(1) of the Act, to the extent that those definitions relate to condensate.
Note: Section 5A of the Act extends the operation of the Act so that it applies to condensate in a corresponding way to the way it applies to stabilised crude petroleum oil.
(2) If only one production area is mentioned in an item of the table in subsection (6), that production area is the whole of the oil producing region mentioned in the table item.
(3) If more than one production area is mentioned in an item of the table in subsection (6), those production areas are each part of, and together make up, the oil producing region mentioned in the table item.
(4) Two or more oil producing regions may have the same name, based on being composed of different production areas.
(5) The date specified in an item of the table in subsection (6) is the VOLWARE commencement date for excisable condensate obtained from the oil producing region mentioned in the table item.
(6) The table is as follows: