Crude oil excise
Key Legislation: Excise Tariff Act 1921
Petroleum Excise (Prices) Act 1987
Before 1 July 1990, crude oil excise applied to all production sourced from the Bass Strait and North West Shelf project areas, as well as all areas under state or Northern Territory jurisdiction (i.e. those not covered by the provisions of the Commonwealth Petroleum (Submerged Lands) Act 1967). The scope of the crude oil excise system was considerably narrowed from this date following the Federal Government's decision to extend the PRRT to include production from Bass Strait.
Crude oil excise is payable on production from individual prescribed production areas that are subject to the provisions of the Excise Tariff Act 1921. Excise is calculated as a percentage of the volume-weighted average of realised free-on-board prices (VOLWARE) made from a designated region.
Higher excise rates apply to higher levels of production from each prescribed production area. The excise scales that apply to production from each prescribed production area depend on the date of discovery and/or the start of production. In May 2008, the Government announced that the regime would be extended to cover condensate produced from non-PRRT areas.
The following table outlines the respective excise rates and the types of excisable oil (this table incorporates modifications made in late 2001).
|
EXCISE RATES ON CRUDE OIL PRODUCTION |
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|
Annual Production |
Excise Rates (% of VOLWARE Price) (1) |
|||
|
megalitres |
'000's barrels |
'old' oil (2) |
'intermediate scale' oil (3) |
'new' oil (4) |
|
0 - 50 |
0 - 315 |
0 |
0 |
0 |
|
over 50 - 100 |
over 315 - 629 |
0 |
0 |
0 |
|
over 100 - 200 |
over 629 - 1259 |
0 |
0 |
0 |
|
over 200 - 300 |
over 1259 - 1888 |
20 |
0 |
0 |
|
over 300 - 400 |
over 1888 - 2517 |
30 |
15 |
0 |
|
over 400 - 500 |
over 2517 - 3146 |
40 |
30 |
0 |
|
over 500 - 600 |
over 3146 - 3776 |
50 |
50 |
10 |
|
over 600 - 700 |
over 3776 - 4405 |
55 |
55 |
15 |
|
over 700 - 800 |
over 4405 - 5034 |
55 |
55 |
20 |
|
over 800 |
over 5034 |
55 |
55 |
30 |
| (1) Volume weighted average realised price f.o.b of crude oil sales in a given calendar month (2) Oil discovered before 18 September 1975 (3) Oil production from fields discovered before 18 September 1975 and undeveloped as of 23 October 1984 (4) Oil discovered on or after 18 September 1975 |
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In addition to the above, the crude oil excise provisions allow for:
- exemption from excise of the first 30 million barrels of cumulative production from each field where excise applies
- exemption from excise of all gas production, including liquefied petroleum gas, liquefied natural gas and commercial gas/ethane.
Crude oil excise receipts are retained wholly by the Federal Government. Collections for the period 1975/76 to 2007/08 were as follows: Crude oil excise receipts are retained wholly by the Federal Government. Collections for the period 1975/76 to 2004/05 were as follows:
| 1975/76 | $264m | 1986/87 | $2062m | 1997/98 | $16m |
| 1976/77 | $344m | 1987/88 | $2056m | 1998/99 | $31m |
| 1977/78 | $476m | 1988/89 | $1188m | 1999/00 | $219m |
| 1978/79 | $1227m | 1989/90 | $1232m | 2000/01 | $526m |
| 1979/80 | $2270m | 1990/91 | $1354m | 2001/02 | $393m |
| 1980/81 | $3108m | 1991/92 | $64m** | 2002/03 | $417m |
| 1981/82 | $3163m | 1992/93 | $116m | 2003/04 | $309m |
| 1982/83 | $3486m | 1993/94 | $62m | 2004/05 | $668m |
| 1983/84 | $3650m | 1994/95 | $27m | 2005/06 | $337m |
| 1984/85 | $4202m | 1995/96 | $13m | 2006/07 | $525m |
| 1985/86 | $4019m | 1996/97 | $9m | 2007/08 | $400m |
Forecast collections for 2008/09 is $1,050m
*Bass Strait was moved from the Excise/Royalty Regime to the PRRT regime with effect from 1 July 1990
Policy
Policy Tax & commercial Crude oil excise
