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ARThJJR ROBINSON & HEDDERWI~
1997
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
CUSTOMS AND EXCISE LEGISLATION
AMENDMENT BILL (NO. 2)1997
SUPPLEMENTARY EXPLANATORY MEMORANDUM
(Amendments to be moved on behalf of the Government)
(Circulated by authority of the Minister for Small Business and Consumer Affairs,
the Honourable Geoff Prosser, MP)
80932 Cat. No. 96 7373 3 ISBN 0644 49785 8
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9 78B~44497855
CUSTOMS AND EXCISE LEGISLATION AMENDMENT BILL (No. 2)1997
(Amendments to be moved on behalf of the Government)
OUTLINE
The purpose ofthe Schedule ofamendments is to:
1. Omit the definition of "beneficiation" - Amendment 1;
2. Omit the reference to "naturally occurring minerals formed by geological
processes" Amendment 2
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3. Redraft the provisions relating to rebate payable in respect of "return journeys"
from the place of beneficiation Amendment 3;
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4. Amend the provision relating to the construction and maintenance of water storage
facilities Amendments 4 and 5
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5. Determine the point at which the beneficiation of manganese under the category of
"mining operations" ceases Amendment 6;
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6. Include a provision limiting the scope ofwhat may be regarded as beneficiation to
"non-economic" matters Amendment 6
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7. Provide a regulation-making head ofpower to equip the Scheme to cater for new
beneficiation processes which become available as a result oftechnological
advances Amendment 8;
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8. Redraft the transitional provisions to provide that only fuel purchased before the
new provisions come into operation, and in respect of which rebate is applied for
before the expiration of 3 months after that date, may be assessed under the old
eligibility rules Amendments 9 and 10;
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FINANCIAL IMPACT STATEMENT
The amendments proposed in the Schedule do not alter the financial impact of the Bill
as originally introduced.
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CUSTOMS AND EXCISE AMENDMENT BILL (NO.2)1997
NOTES ON AMENDMENTS
Amendment 1
This amendment removes the definition of "beneficiation" contained in Clause 10 ofthe
Bill.
The definition in the Bill was designed to provide certainty, by an exhaustive definition
of the term beneficiation. However, following discussions with industry the
Government accepted that the definition in the Bill had unintended effects and has
decided not to proceed with that definition.
In reverting to what is presently in the Act the Government has decided that the
question of whether a process constitutes beneficiation will continue to be decided on a
case by case basis.
In the absence of a specific definition of "beneficiation", the Government has
introduced new subsection 1 64(17P) to provide general guidance to Courts and
Tribunals in relation to the beneficiation process. (Amendment 6 refers)
Amendment 2
This amendment omits Clause 12 of the Bill
(Clause 12 amended the definition of minerals by omitting from that definition
"minerals in any form" and substituting "naturally occurring minerals formed by
geological processes")
As a consequence of the removal of the definition ofbeneficiation and the inclusion of
the specific reference to manganese this amendment is no longer necessary
(Amendment 6 refers)
Amendment 3
This amendment redrafts the provisions relating to rebate payable in respect of "return
journeys" from the place ofbeneficiation. This amendment takes account of, and
ensures eligibility for rebate for, the following return journeys:
· journeys returning from the place of beneficiation to the place of the "mining
operation" that cover only a portion of the route. This is intended to cover cases
where different stages of the journey are completed by different vehicles or modes
of transport.
· "closed ioop" transportation, whereby a vehicle services several "mining
operations" but does not always return to the same mine-site.
In all cases, sea transport remains excluded.
Customs and Excise Legislation Amendment Bill (No.2)1997 1
Amendment 4
This amendment, which covers the construction and maintenance ofdams or other
works to contain water, is extended to provide for water which contains contaminants
that cannot be released into the environment as well as water which is contaminated in
the mining process.
Amendment 5
This amendment is consequential to amendment 4 and substitutes "uncontaminated" for
unpolluted".
Amendment 6
This amendment:
(a) makes specific provision for the beneficiation of manganese under the category of
"mining operations" new subsection l64(7C) and
(b) includes a provision limiting the scope ofwhat may be fairly regarded as
beneficiation to "non-economic" matters new subsection I 64(7D).
new subsection 164(7C) provides that the beneficiation of ores bearing manganese
minerals ceases when manganese-mineral concentrates are last deposited in a holding-
bin, or in a stockpile, at the place where the concentration is carried on, before
transportation of those concentrates.
new subsection l64(1D) provides that, in determining whether any particular process
constitutes beneficiation, no regard is to be had to any market considerations that
might affect the decision to subject a mineral or ore to that process.
By this provision the Government intends to provide guidance to applicants, and to
Courts and Tribunals, that evinces the clear intention that the purpose of providing
eligibility for the process of beneficiation does not confer eligibility on activities
undertaken for economic or market considerations.
In particular, it is the Government's intention not to adopt the expansive construction
placed on the term "beneficiation" by the Federal Court in the case ofDAMPIER
SALT (Regional Director of Customs (WA) v Dampier Salt (Operations) Pty Ltd,
12 June 1996), whether in relation to salt or any other mineral.
Amendment 7
This amendment is a technical consequential amendment providing a cross-reference to
the new subsections 164(7C) and l64(7D) inserted by Amendment 6.
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Customs and Excise Legislation Amendment Bill (No.2)1997 2
Amendment 8
This amendment provides a regulation-making head of power to equip the Scheme to
confer eligibility on new beneficiation processes which become available as a result of
technological advances
Amendment 9
This amendment redrafts the transitional provisions in relation to the Customs Act 1901
to provide that only fuel purchased before the new provisions come into operation, and
in respect of which rebate is applied for before the expiration of 3 months after that
date, may be assessed under the old eligibility rules
Amendment 10
This amendment redrafts the transitional provisions in relation to the Excise Act 1901
to provide that only fuel purchased before the new provisions come into operation, and
in respect of which rebate is applied for before the expiration of 3 months after that
date, may be assessed under the old eligibility rules
Printed by Authority by the Commonwealth Government Printer
Customs and Excise Legislation Amendment Bill (No.2)1997 3
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