Purpose of the Bill
The purpose of the Excise and Customs Legislation Amendment (Streamlining Administration) Bill 2024 (the Bill) is to:
- amend the Excise Act 1901 to streamline licence application and renewal requirements for businesses that hold or seek to hold excise licences that authorise the manufacturing or storage of fuel and alcohol products
- amend the Customs Act 1901 to streamline licence application and renewal requirements for businesses that hold or seek to hold customs licences that authorise the warehousing of excise-equivalent goods (EEGs)
- amend the Excise Act and the Customs Act to create a public register of all excise and customs licensees that manufacture, store and warehouse fuel and alcohol products.[1]
To achieve this, the Bill has 4 Parts:
- Part 1 – Warehouse and excise licensing
- Part 2 – Removing goods from licensed premises to other licensed premises
- Part 3 – The Excise and Excise-Equivalent Warehouse Licences Register
- Part 4 – Removing licence requirements for certain producers of crude oil and condensate.
Background and resources for the Bill
Government reports
In July 2021, the Deregulation Taskforce at the Department of Prime Minister and Cabinet (PM&C) published a report titled ‘Streamlining excise administration for fuel and alcohol’. The Taskforce conducted consultation with 45 businesses and peak bodies across the fuel and alcohol sectors, and found that many businesses are concerned by the regulatory burdens imposed by Australia’s excise system[2]:
For over a decade, key stakeholders (including refiners, distillers, brewers, distributors, and freight and logistics businesses) have argued Australia’s excise and excise-equivalent goods (EEGs) duty system (‘excise system’) could be more efficient. In particular, they have focused on unnecessarily complex, cumbersome, and duplicative processes that impose demands on business resources that would otherwise be focused on productive, jobs-and growth-generating, activities. Business has suggested that inefficiencies in the excise system are likely also to impose unnecessary time burdens on skilled officials from the [Australian Taxation Office] ATO and the [Australian Border Force] ABF, detracting from a focus on high-risk compliance.[3]
Consequently, the report identified a number of potential opportunities to improve the excise system through both administrative and legislative reforms.[4]
Several stakeholders published their submission in relation to the PM&C’s report:
- Shipping Australia Limited, Submission to PM&C, Streamlining Excise Administration for Fuel and Alcohol, 1 September 2021.
- Australian Small Business and Family Enterprise Ombudsman, Submission to PM&C, Streamlining Excise Administration for Fuel and Alcohol, 2 September 2021.
- Gas Energy Australia, Submission to PM&C, Submission to PM&C, Streamlining Excise Administration for Fuel and Alcohol, 31 August 2021.
Budget measures
In the March 2022–23 Budget, the Morrison Government announced a package of deregulatory measures to streamline the administration of fuel and alcohol excise (p. 7). Several measures from this package were legislated as part of Treasury Laws Amendment (Refining and Improving our Tax System) Act 2023 and took effect on 1 July 2023.[5]
In the 2023–24 Budget, the Albanese Government deferred the start date for the remaining measures of the package from 1 July 2023 to 1 July 2024 to ‘provide greater certainty to taxpayers’.[6]
Exposure Draft consultation
The Bill implements the remaining measures of the deregulation package. The Department of Treasury released an Exposure Draft of the Bill in March 2024 for stakeholder feedback. Treasury officials indicate they plan to publish stakeholders’ written submissions in due course.[7]
Furthermore, Treasury has released Exposure Drafts of the Customs Amendment Regulations 2024 and the Excise Amendment Regulations 2024. The Amending Regulations are intended to give operational effect to the deregulation package.[8]
Media reports
Committee consideration
Selection of Bills Committee
At its meeting on 16 May 2024, the Senate Selection of Bills Committee deferred consideration of the Bill until its next meeting.[9]
Policy position of non-government parties/independents
As noted, the Bill implements some measures from the ‘Commonwealth’s Deregulation Agenda’ that was announced by the Morrison Government’s March 2022–23 Budget.
At the time of writing, the Coalition has not yet commented on the Bill.
The policy position of other non-government parties could not be identified.
Financial implications
According to the Bill’s Explanatory Memorandum:
The Bill is expected to have a negative impact on the underlying cash balance of $3.3 million over the 4 years from 2023–24. This is due to the removal of licence charges for customs warehouse licences authorised to store excise-equivalent goods.[10]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the Bill’s compatibility with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of that Act. The Government considers that the Bill is compatible.[11]
The Bill provides for the establishment of a public register (known as the ‘Excise and Excise‑Equivalent Warehouse Licences Register’), published on a website maintained by the Australian Taxation Office (ATO). The information published will include the licence holder’s name and ABN, and the Act under which the licence was granted. Some licence holders may be individuals, and the names of these licence holders are considered personal information under the Privacy Act 1988.[12] The Explanatory Memorandum notes:
The Bill’s limitations on the right to privacy are necessary, reasonable and proportionate to the legitimate aim of providing deregulatory relief for businesses by making information about licensed entities readily available and reducing touch points with the ATO and the ABF.[13]