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Legislative Instrument

Excise (Volume of LPG – Temperature and Pressure Correction) Determination 2016 (No. 2)

I, Deborah Jenkins, Acting Deputy Commissioner of Taxation, make this determination under section 65 of the Excise Act 1901 ('Excise Act').

Deborah Jenkins
Acting Deputy Commissioner of Taxation
Dated: 13/09/2016

 Name of determination

      1. This determination may be cited as the Excise (Volume of LPG – Temperature and Pressure Correction) Determination 2016 (No. 2).

    Commencement

    2.             This determination commences on the day after registration.

    Repeal of previous determination

    3.     Excise (Volume of LPG – Temperature and Pressure Correction) Determination 2016 (No. 1)­ - F2016L00130, registered on 22 February 2016, is repealed on commencement of this determination.

    Determination

    4.             This determination is a legislative instrument for the purposes of the Legislation Act 2003 ('Legislation Act').

    5.             This determination applies to Liquefied Petroleum Gas (LPG) delivered for home consumption pursuant to section 61C of the Excise Act on or after the date of commencement.

    Object

    6.             Under section 65 of the Excise Act, the CEO may determine rules for working out the volume of excisable goods.

    7.             These rules govern the volume of LPG for the purposes of determining the amount of excise duty payable on LPG.

    Determining the volume of LPG

    8.              In determining the volume of LPG (in litres) delivered into home consumption, the following methods are permissible subject to paragraphs 9, 10 and 12:

    Method 1 – Determining the volume of LPG in litres by use of a factor based on density.

    This method allows for the conversion from kilograms to litres of a quantity of LPG delivered for home consumption by either:

       (a)     the use of a factor based on the measured density of the LPG at ambient temperature corrected to 15º Celsius using the American Society for Testing and Materials (ASTM) Petroleum Measurement Tables for Light Hydrocarbon Liquids – Density Range 0.500 to 0.653 Kg/L at 15º C; or

       (b)     the use of the conversion factor stipulated in Section 24(1) of the Excise Regulation 2015 (Excise Regulation).

    Method 2 – Determining the volume of LPG in litres at 15 Celsius by use of equilibrium vapour pressure and a temperature correction factor.

    Method 2 requires the use of the American Petroleum Institute (API) Manual of Petroleum Measurement Standards, Chapter 11.2.2M – Compressibility Factors for Hydrocarbons: 350-637 kg/m3 Density (15º C) and -46º C to 60º C Metering Temperature to correct the volume of LPG metered under operating pressure to the corresponding volume at the equilibrium vapour pressure for the metered temperature and the use of the American Society for Testing and Materials (ASTM) Petroleum Measurement Tables for Light Hydrocarbon Liquids – Density Range 0.500 to 0.653 Kg/L at 15º C, to correct the