Document ID: chunk:federal_register_of_legislation:F2016L01522:body:0:p1
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Legislative Instrument

Excise (Mass of CNG) 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 is the Excise (Mass of CNG) Determination 2016 (No.2) 2016.

    Commencement

    2.             This determination commences on the day after registration.

    Repeal of previous determination

    3.     Excise (Mass of CNG) Determination 2016 (No. 1)­ – F2016L0013 registered on the 19/02/2016 is repealed on the commencement of this determination.

    Determination

    5.             This determination is a legislative instrument for the purposes of the Legislation Act 2003.

    6.             This determination applies to Compressed Natural Gas (CNG) classified to sub-item 10.19C of the Schedule to the Excise Tariff Act 1921 (the Schedule) that is 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 or weight of excisable goods.

    7.             These rules govern the methods for calculating the mass of excisable CNG for the purposes of determining the amount of excise duty payable.

    Determining the mass of CNG

    8.             To determine the duty applicable to excisable CNG, the dutiable quantity must first be determined.  For excisable CNG this is the mass in kilograms. In determining the mass of excisable CNG delivered into home consumption, the following methods are permissible:

    9.             Where a person's measuring equipment can differentiate quantities of excisable CNG from other quantities of CNG produced or natural gas used the person must, subject to paragraph 13, calculate the mass of excisable CNG delivered into home consumption using method 1, 2 or 3.

    Method 1 - If your measuring equipment measures goods in kilograms, you must use this figure.

    Method 2 - If your measuring equipment measures goods as energy (joules), you must convert to kilograms by either:

         (a)               the use of the conversion factor stipulated in Section 24(3) of the Excise Regulation 2015 (Excise Regulation); or

         (b)               the use of a conversion factor based on the composition of the gas by mole fraction using the method as described in the International Organization for Standardization ISO 6976-1995, Natural gas – Calculation of calorific values, density and Wobbe index from composition.

    Method 3 - If your measuring equipment measures goods in volume (cubic metres), you must calculate the mass of excisable CNG delivered into home consumption by either:

            (a)               (i)              converting from cubic metres (m3) to megajoules by using the heating value and any associated correction/pressure factors of the gas, as supplied by your gas distributor in your most recent tax invoice,