9Transaction 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)).

(2) Subject to subsection (3), the credit allowance for the purposes of paragraph (1)(b) is the result of the following formula (expressed as an amount of Australian dollars to the nearest cent): Start formula start fraction open bracket Number of credit days allowed minus 30 close bracket times Interest rate times Relevant delivery price of the delivered oil over Number of days in the applicable year end fraction end formula where:

interest rate means:

(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.

(3) If: (a) the effective credit day under the contract is in one financial year (the first year) and the due date for payment under the contract is in the next later financial year (the second year); and (b) the number of credit days allowed under the contract that happen in the first year is more than 30; the credit allowance for the purposes of paragraph (1)(b) is the result of the following formula (expressed as an amount of Australian dollars to the nearest cent): where: