What it does
This Act implements a narrow, administratively‑driven mechanism by which the Commonwealth may recognise State resource‑rent royalty arrangements and facilitate an excise exemption for certain petroleum produced from specified production sources. The discrete chain of mechanics is:
- A State and the producer(s) of market petroleum from a production unit enter into a relevant resource rent royalty agreement that provides for a royalty in respect of market petroleum produced from that unit on or after a specified 1 July (s 5(a), s 6(1)(a), s 3 definitions).
- The State may request the Commonwealth to enter into a corresponding relevant revenue‑sharing agreement; the Minister may arrange for the Commonwealth to do so (s 5(b), s 5).
- Where both the State and producer(s) have the relevant resource rent royalty agreement, and the Commonwealth and State have entered into the relevant revenue‑sharing agreement, the Minister must give the Minister administering the Excise Tariff Act 1921 (the Excise Minister) a written certificate stating that prescribed petroleum produced from the production source on or after the specified 1 July should be exempt from duties of Excise (s 6(1)).
- On receipt of the Minister’s certificate, the Excise Minister must publish a notice in the Gazette declaring that prescribed petroleum produced from that source, other than petroleum produced before the specified 1 July or after revocation, is exempt from Excise duties (s 6(2)).
- If the resource rent royalty agreement or revenue‑sharing agreement ceases to be in force, the Minister must certify to the Excise Minister that the declaration should be revoked and the Excise Minister must revoke the declaration by Gazette notice (s 6(3)-(4)).
- For Excise Act purposes, prescribed petroleum exempt under s 6 is not to be treated as excisable goods and any purported entry made under s 58 of the Excise Act 1901 shall be taken not to have been made (s 7(1)).