FUEL SUBSIDIES ACT (Repealed)

This reprint shows the Act as in force at 1 March 2011. Any amendments that commence after that date are not included.

An Act to licence suppliers of certain fuel and to pay subsidies for certain fuel

(1) This Act comes into operation on the date fixed by the Administrator by notice in the Gazette.

(2) Despite subsection (1), the provisions of this Act relating to the application for and grant of fuel supplier's licences and any provisions of this Part that relate to those provisions (including this subsection), apply and have effect to the extent necessary or expedient to enable those licences to be granted before this Act comes into operation.

Commissioner means the Commissioner of Territory Revenue appointed under section 6 of the Taxation Administration Act and includes any person performing the functions and exercising the powers of the Commissioner under that Act.

fuel subsidy means the general subsidy, the ORD subsidy or the special subsidy.

licensed supplier means a person who holds a valid fuel supplier's licence.

prescribed fuel means fuel that is prescribed for the purposes of this definition.

whether or not the use or assistance of some electronic, electrical, mechanical, chemical or other device or process is required to recover or convey the information or meaning.

road vehicle means a vehicle designed solely or principally for transporting people or things by road but does not include:

(a) a vehicle in respect of which a pastoral vehicle permit under section 137B of the Motor Vehicles Act is in force; and

(2) Diesel is used to propel a road vehicle even though the engine propelling the vehicle also operates equipment on the vehicle that does not propel the vehicle.

(3) If diesel used to propel a road vehicle is drawn from a tank on the vehicle that also supplies diesel for purposes other than for propelling the vehicle, all diesel drawn from the tank is taken to be used to propel the vehicle.

(4) All diesel consumed by the engine of a road vehicle is to be taken to be used to propel the vehicle, whether the vehicle is moving or not.

This Act binds the Crown in right of the Territory and, in so far as the legislative power of the Legislative Assembly permits, the Crown in all its other capacities.

A quantity of prescribed fuel is supplied at the general subsidised price if it is supplied at a price per litre that is less than the price that would otherwise have been charged for supplying that quantity at the place of supply by an amount that is equal to or greater than the general subsidy rate.

(1) A person must not carry on in the Territory a business of making initial supplies of prescribed fuel to places in the Territory unless the person holds a valid fuel supplier's licence.

(2) A person must not carry on in a State or another Territory of the Commonwealth a business of supplying prescribed fuel to other persons who take delivery of the fuel at a place in the Territory unless the person holds a valid fuel supplier's licence.

(3) A person must not carry on in the Territory a business of supplying prescribed fuel to other persons who take delivery of the fuel in a State or another Territory of the Commonwealth unless the person holds a valid fuel supplier's licence.

(5) A person makes an initial supply of prescribed fuel to a place in the Territory if the person:

(a) for the purposes of the Customs Act 1901 or the Excise Act 1901 of the Commonwealth, enters the fuel for home consumption or delivers the fuel for or into home consumption; and

(i) supplies the fuel to another person who takes delivery of the fuel at a place in the Territory; or

(ii) consumes the fuel at a place in the Territory for the person's own purposes.

(6) The Regulations may exempt a person or a class of persons from the requirement to be licensed under this section.

(1) An application for a fuel supplier's licence is to be made to the Commissioner in an approved form.

(2) The application is to be accompanied by the prescribed fee for the grant of the fuel supplier's licence.

(1) If an application is made in accordance with section 7, the Commissioner may grant the applicant a fuel supplier's licence.

(2) A fuel supplier's licence is valid for the prescribed period unless it is cancelled under section 17 or 18.

(a) the licensed supplier must comply with the fuel supply condition set out in section 10;

(b) the licensed supplier must comply with the record conditions set out in section 11;

(1) A licensed supplier who supplies prescribed fuel to another person who is at a place in the Territory must supply it at the general subsidised price.

(2) Subsection (1) does not apply if the person to whom the prescribed fuel is supplied is not permitted to apply for the general subsidy for the fuel.

(a) of every supply of prescribed fuel by the licensed supplier to a person at the general subsidised price; and

(2) A licensed supplier must keep those records for 5 years after the date of any claim made under Part 3 for a subsidy for the prescribed fuel supplied or used.

(3) Subsection (2) applies even though a person ceases to be a licensed supplier.

If the Commissioner is not satisfied with the information in an application for a fuel supplier's licence, the Commissioner may request the applicant to provide further information in relation to the application.

(1) The Commissioner may refuse to grant a fuel supplier's licence to an applicant if the applicant:

(a) was granted a fuel supplier's licence that was cancelled under section 18(2) or (3);

(b) is related to a person who was granted a fuel supplier's licence that was cancelled; or

(2) An applicant who is refused a fuel supplier's licence may apply to the Minister for a review of the Commissioner's decision and section 42 applies accordingly.

(3) Persons are related if they are related for the purposes of Part 3, Division 8A of the Stamp Duty Act.

(1) The Commissioner may impose any conditions on a fuel supplier's licence that the Commissioner thinks fit.

(2) Subsection (1) does not require the Commissioner to impose the same conditions on all fuel supplier's licences.

(3) The Commissioner may impose conditions when granting the fuel supplier's licence or at any time after that.

(4) The Commissioner may at any time amend or cancel the conditions of a fuel supplier's licence.

(5) If the Commissioner imposes conditions after granting a fuel supplier's licence or amends or cancels conditions, the Commissioner must give the licensed supplier written notice of the decision and the date on which the decision takes effect.

(6) A licensed supplier who objects to a decision by the Commissioner under this section may apply to the Minister for a review of the Commissioner's decision and section 42 applies accordingly.

(1) A licensed supplier must deliver the licence to the Commissioner if the licensed supplier ceases to be a person who could apply for a fuel supplier's licence.

(1) The Commissioner may cancel a fuel supplier's licence at any time if the Commissioner has granted the licensed supplier another fuel supplier's licence.

(2) The Commissioner may cancel a fuel supplier's licence at any time if the Commissioner has reasonable grounds to suspect that the licensed supplier:

(b) in purported compliance with the conditions of the fuel supplier's licence, provided false or misleading information; or

(3) The Commissioner may cancel a fuel supplier's licence if the licensed supplier is found guilty of an offence against this Act.

(a) the Commissioner must give the licensed supplier written notice of, and reasons for, the decision; and

(b) the licensed supplier must return the fuel supplier's licence to the Commissioner within 14 days after receiving the notice.

(6) A licensed supplier who objects to the cancellation of the fuel supplier's licence by the Commissioner may apply to the Minister for a review of the Commissioner's decision and section 42 applies accordingly.

(a) for prescribed fuel that the supplier has supplied at the general subsidised price to a person if the supply is of a kind referred to in section 6; and

(i) in the Territory for any purpose other than for propelling a road vehicle; or

(2) Subject to this Part, the ORD subsidy is payable to a licensed supplier for diesel used or to be used by the licensed supplier in the Territory or the Territorial sea of the Commonwealth.

Subject to this Part, the special subsidy is payable to a prescribed person, or a person of a class of prescribed persons, for diesel or prescribed fuel supplied or used or to be supplied or used by the person in accordance with the prescribed conditions.

for a quantity of prescribed fuel or diesel in a case where a subsidy is payable for the prescribed fuel or diesel under a law or scheme operating in a State or another Territory of the Commonwealth.

The money required to pay fuel subsidies is to be paid from the public moneys of the Territory and the appropriation for that purpose is established or increased to the extent necessary.

(1) An application for a fuel subsidy must be made to the Commissioner in an approved form.

(3) If the Commissioner is not satisfied with the information in an application, the Commissioner may, whether before or after paying a fuel subsidy in respect of the application, request the applicant to provide further information in relation to the application.

(4) If the applicant does not provide the further information, or the Commissioner is not satisfied with the information provided, the Commissioner may:

(b) if the fuel subsidy has been paid, treat the subsidy as having been paid under an incorrect subsidy application and section 31 applies accordingly.

(5) An applicant who objects to a refusal by the Commissioner may apply to the Minister for a review of the Commissioner's decision and section 42 applies accordingly.

(1) A licensed supplier must not apply for the general subsidy for prescribed fuel for which the supplier or any other person has previously applied for or been paid the general subsidy.

(2) A licensed supplier must not apply for a general subsidy for prescribed fuel that the supplier has supplied to a person at a place outside Australia.

(3) A licensed supplier must not apply for a general subsidy for prescribed fuel that is not entered or delivered into home consumption for the purposes of the Customs Act 1901 and the Excise Act 1901 of the Commonwealth.

(4) A licensed supplier must not apply for a general subsidy for prescribed fuel that the supplier has supplied to a person when prohibited from doing so by the Regulations.

(5) A person who applies for the general subsidy in contravention of this section commits an offence unless the person has complied with section 30(2).

(1) A person must not apply for the ORD subsidy for diesel for which the person or any other person has previously applied for or been paid the ORD subsidy.

(2) A person must not apply for the ORD subsidy for diesel supplied to the person if the person or any other person is eligible to claim the special subsidy in respect of the diesel.

(3) A person must not apply for the ORD subsidy for diesel that the person or any other person is able to obtain:

(b) a drawback of Excise duty under section 79 of the Excise Act 1901 of the Commonwealth.

(4) A person must not apply for the ORD subsidy for diesel that the person or any other person is able to obtain:

(a) a rebate of duty under regulation 126(1)(s)(i) of the Customs Regulations of the Commonwealth; or

(b) a rebate of Excise duty under regulation 50(1)(x) of the Excise Regulations of the Commonwealth.

(5) A person must not apply for an ORD subsidy for diesel if the person is prohibited from doing so by the Regulations.

(6) A person who applies for the ORD subsidy in contravention of this section commits an offence unless the person has complied with section 30(2).

(1) A person must not apply for the special subsidy for prescribed fuel or diesel for which the person or any other person has previously applied for or been paid the special subsidy.

(2) A person must not apply for the special subsidy for prescribed fuel or diesel unless it is supplied to the person from a place in the Territory.

(3) A person who applies for the special subsidy in contravention of this section commits an offence unless the person has complied with section 30(2).

(1) A person who applies for the ORD subsidy or special subsidy must keep records that are required by the Commissioner.

(2) The records are to contain sufficient detail to enable the Commissioner to determine:

(a) the amount of prescribed fuel or diesel that was supplied to the person for use or supply as permitted by this Act; and

(b) the manner in which the person used or supplied the prescribed fuel or diesel in respect of which an application for the subsidy is made.

(3) A person must keep those records for 5 years after the date of any claim made under this Part for a subsidy.

The Commissioner is to pay the fuel subsidy calculated under the Regulations if he or she receives an application for the fuel subsidy that is made in accordance with this Part.

(1) In this section and section 31, a person makes an incorrect subsidy application if the person applies for a fuel subsidy:

(b) for prescribed fuel that has been supplied or used in circumstances involving a breach of a condition of the person's fuel supplier's licence;

(e) in circumstances where the special subsidy is not payable for the prescribed fuel or diesel;

(f) in circumstances where the amount of the fuel subsidy applied for is greater than the amount of the fuel subsidy that ought to have been applied for; or

(g) for prescribed fuel or diesel in respect of which the person has not kept proper records as required by this Act.

(2) If a person makes an incorrect subsidy application, then the person must within 30 days after making the application:

(b) pay the Commissioner an amount equal to the unjustified benefit that the person has received or will receive.

(3) The unjustified benefit is the amount by which the fuel subsidy applied for in the incorrect subsidy application is greater than the fuel subsidy to which the person is entitled under this Act.

(1) If a person makes an incorrect subsidy application and does not comply with section 30(2), the Commissioner may give the person a notice that sets out:

(b) if the Commissioner is not able to determine that amount because of insufficient, false or misleading records or information – an amount determined by the Commissioner.

(3) If the person does not pay the penalty on or before the date for payment specified in the notice:

(b) in the case of a licensed supplier, the Commissioner may suspend the operation of the supplier's fuel supplier's licence until it is paid; and

(4) In addition to subsection (3)(c), the Commissioner may suspend paying any future fuel subsidies to the person.

(5) The date for payment must be at least 14 days after the date on which the notice is given to the person.

relevant material means a record or thing relevant to an authorised investigation.

vehicle means any thing used or capable of being used to transport people or things by air, rail, road or water.

An authorised investigation is an investigation for the purposes of one or more of the following:

(b) ascertaining whether a fuel subsidy has been paid when it should not have been;

(d) ascertaining whether a licensed supplier has complied with the conditions of the fuel supplier's licence;

(e) auditing any records required to be kept under this Act or relevant to any matter provided for by this Act;

(2) The Commissioner must issue an authorised investigator with an identity card that is to include a photograph of the investigator.

(1) For the purposes of an authorised investigation, the Commissioner may require a person:

(b) to produce to the Commissioner specified relevant material or relevant material of a specified class in the person's possession, custody or power.

(a) may be made whether or not the person to whom the requirement is addressed is the subsidy claimant; and

(b) is to be made by notice in writing given to the person to whom the requirement is addressed.

(3) A person required to provide answers to questions by notice under this section must, if the notice requires, verify the answers by statutory declaration.

(4) A person who does not comply with a requirement of a notice under this section within the time specified in the notice (or any further time the Commissioner, in the exercise of an absolute discretion, allows) commits an offence.

(1) For the purposes of an authorised investigation, the Commissioner may require a person to attend at a specified time and place before an authorised investigator for examination on a subject specified in the notice.

(a) may be made whether or not the person to whom it is addressed is a person who has applied for a fuel subsidy; and

(b) is to be made by notice in writing given to the person to whom it is addressed.

(3) A notice requiring a person to attend for examination may require the person to bring and produce to the authorised investigator conducting the examination any relevant material in the person's possession, custody or control relating to the subject of the examination.

(4) An authorised investigator conducting an examination may require a person attending for examination:

(b) to answer a question relevant to the subject matter of the examination asked by the investigator or, with the consent of the investigator, by another person present at the examination; and

(5) A person who contravenes a requirement under this section commits an offence.

(6) The Regulations may provide for, or permit a person to determine, the scales of expenses to be allowed to persons required under this section to attend.

(1) For the purposes of an authorised investigation, an authorised investigator:

(a) may enter and remain on premises to exercise the powers of investigation in section 39; and

(b) may stop and detain a vehicle and give reasonable directions as to the movement of it.

(a) the investigator may enter the premises at any reasonable time with the consent of the occupier;

(b) the investigator may enter the premises under the authority of a search warrant issued under section 38; or

(c) if the investigator believes, on reasonable grounds, that it is urgently necessary to do so in order to prevent the destruction of or interference with relevant material, he or she may enter the premises at any time without the consent of the occupier and without a warrant.

(3) The authorised investigator must not exercise the power in subsection (2)(c) unless the Commissioner in the particular case has authorised the investigator, orally or in writing, to do so.

(4) The authorised investigator must, at the reasonable request of a person apparently in charge of the premises or any other person on the premises, display the investigator's identity card.

(1) For the purposes of an authorised investigation, an authorised investigator may apply to a Justice for a search warrant.

(2) If the Justice is satisfied by evidence on oath that there are reasonable grounds to suspect that there may be relevant material on any premises the Justice may issue a search warrant to an authorised investigator.

(a) to enter the premises specified in the warrant at the time or within the period specified in the warrant; and

(4) A search warrant may be executed by the authorised investigator to whom it is issued or by any other authorised investigator.

(5) An authorised investigator executing a warrant must, at the reasonable request of a person apparently in charge of the premises or any other person on the premises, display the warrant.

(1) An authorised investigator who enters premises under section 37 or under a warrant issued under section 38 may exercise any one or more of the following powers:

(d) take possession of any relevant material and retain it for as long as may be necessary:

(iii) if it is relevant to possible legal proceedings – for the purposes of those proceedings;

(e) if any relevant material found on the premises cannot be conveniently removed, secure it against interference;

(ii) to answer (orally or in writing) questions asked by the authorised investigator relevant to the authorised investigation;

(iv) to operate equipment or facilities on the premises for a purpose relevant to the authorised investigation;

(v) to give other assistance the authorised investigator reasonably requires to carry out the authorised investigation.

(2) An authorised investigator must not exercise the power in subsection (1)(b) unless the Commissioner has in the particular case authorised the investigator, orally or in writing, to do so.

(3) If an authorised investigator takes anything from the premises, the investigator must issue a receipt, in an approved form, and:

(a) if the occupier or a person apparently responsible to the occupier is present, give it to him or her; or

(b) otherwise, leave it on the premises in an envelope addressed to the occupier.

(a) hinders or obstructs the investigator in the exercise of powers under this section;

(1) An authorised investigator may use reasonable force to exercise the power to enter premises under section 37 or under a warrant issued under section 38 or to exercise the powers in section 39(1)(a) to (e).

(2) An authorised investigator must not use the power in subsection (1) unless the Commissioner has in the particular case authorised the investigator, orally or in writing, to do so.

(3) An action or proceedings, whether civil or criminal, does not lie against an authorised investigator arising from his or her use of reasonable force in accordance with subsection (1) if the use was in good faith and for the purposes of this Act.

(1) The Commissioner may delegate to a person any of his or her powers and functions under this Act except:

(2) When a power or function that is delegated under this section is exercised or performed by the delegate it is to be taken to have been exercised or performed by the Commissioner.

(b) may be to a named person or to a person from time to time holding, acting in or performing the duties of an office, designation or position; and

(1) If within 60 days after a decision of the Commissioner the Minister receives an application under a section that provides for a person to apply to the Minister for a review of the decision, the Minister is to review the decision and may confirm, vary or reverse it.

(2) If the application is for a review of a decision of the Commissioner made under section 15(6) or 18(6), the Commissioner's decision is suspended from the time the application is received by the Minister until the applicant is given notice of the Minister's decision.

(3) The decision of the Minister that is suspended under subsection (2) has effect subject to the Minister's decision from when notice of the Minister's decision is given unless the decision is reversed.

(5) The Commissioner must give the applicant written notice of the Minister's decision.

(6) The Minister's decision is final and cannot be appealed against other than on the grounds of excess or want of jurisdiction.

(1) The following persons are subject to the duty of confidentiality in this section:

(b) a person who is or was engaged or employed in the administration or enforcement of this Act;

(ii) who gains access (properly or improperly) to information or records obtained under this Act.

(2) A person subject to the duty of confidentiality in this section must not record, disclose, or make use of information or records obtained under this Act except:

(b) as required or allowed by this Act or another written law that specifically or by necessary implication overrides this duty of confidentiality;

(d) for the purpose of legal proceedings, or a report of legal proceedings, arising out of this Act.

(a) to an employee of the Agency responsible for the administration of this Act;

(b) to an officer of Customs for a purpose connected with the administration or enforcement of the Customs Act 1901, the Customs Tariff Act 1995, the Excise Act 1901, or the Excise Tariff Act 1921 of the Commonwealth;

(c) to an official administering a taxation law of the Commonwealth, a State or another Territory of the Commonwealth for a purpose related to the administration of that law;

(d) to an official of the Commonwealth, a State or another Territory of the Commonwealth administering a scheme for the payment of subsidies for fuel;

(e) to the Auditor-General for the purposes of performing functions or exercising powers in relation to an audit of the office of the Commissioner imposed or conferred on the Auditor-General by or under the Audit Act or any other Act;

(iii) an officer of another law enforcement agency established under the law of the Commonwealth, a State or another Territory of the Commonwealth authorised by the Regulations to receive confidential information under this paragraph;

(g) in a statistical or other form that could not reasonably be expected to lead to the identification of any person to whose affairs it relates; or

(h) in other circumstances in which its disclosure is permitted by the Regulations.

(4) If information or records are lawfully disclosed under this section, this section does not prevent the further disclosure of the information or records, or the recording or use of the information or records, for the purpose for which the disclosure was made.

(5) Nothing in this section prevents the Auditor-General from disclosing or publishing information or records lawfully disclosed under this section if the disclosure or publication does not directly or indirectly divulge information identifying the affairs of a particular person.

(6) A person subject to the duty of confidentiality in this section who contravenes it commits an offence.

(1) A person who gives false or misleading information in, or in relation to, an application for a fuel supplier's licence or a fuel subsidy commits an offence.

(2) A licensed supplier who contravenes or fails to comply with a condition of the fuel supplier's licence commits and offence.

(3) A person may be found guilty of an offence against subsection (2) even if the condition contravened is subsequently amended or cancelled.

(a) a court that finds the person guilty of an offence of not paying it may order the person to pay it; or

(b) the Commissioner may recover it in a court of competent jurisdiction as a debt due and payable to the Territory.

(2) On 1 July 2000, this Act ceases to apply in respect of prescribed fuel and diesel supplied on or after that date.

(a) prescribed fuel is no longer required under this Act to be supplied at the general subsidised price;

(b) a general subsidy is no longer payable under this Act in respect of prescribed fuel supplied or used on or after that date;

(c) the ORD subsidy is no longer payable under this Act in respect of diesel supplied on or after that date but remains payable in respect of diesel supplied before that date and used on or after that date in accordance with section 20(1)(b);

(d) the ORD subsidy is no longer payable under this Act to a licensed supplier in respect of diesel used on or after that date in accordance with section 20(2);

(e) the special subsidy is no longer payable under this Act to McArthur River Mining Pty Ltd ("MRM") in respect of prescribed fuel or diesel supplied to MRM on or after that date but remains payable in respect of prescribed fuel and diesel supplied to MRM before that date and used on or after that date in accordance with regulation 10(1) of the Fuel Subsidies Regulations; and

(f) the special subsidy is no longer payable under this Act to a person in respect of diesel supplied or used after that date in accordance with regulation 10(2) of the Fuel Subsidies Regulations.

(4) On 1 July 2000, by virtue of this subsection, a fuel supplier's licence is cancelled.

(5) The Commissioner must refund to a person whose licence is cancelled under subsection (4) an amount that bears the same proportion to the amount paid under section 7(2) for the grant of the licence as the portion of the period of the licence that, but for the cancellation, would have remained bears to the total period of the licence.

(1) The Administrator may make regulations, not inconsistent with this Act, prescribing all matters:

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) The Regulations may provide that the general subsidy rate, the ORD subsidy rate or the special subsidy rate is the amount determined in accordance a formula specified in the Regulations.

(3) The Regulations may provide that the general subsidy rate, the ORD subsidy rate or the special subsidy rate is to be paid in respect of prescribed fuel or diesel supplied or used on and from a date specified in, or determined under, the Regulations.

amd = amended od = order
app = appendix om = omitted
bl = by-law pt = Part
ch = Chapter r = regulation/rule
cl = clause rem = remainder
div = Division renum = renumbered
exp = expires/expired rep = repealed
f = forms s = section
Gaz = Gazette sch = Schedule
hdg = heading sdiv = Subdivision
ins = inserted SL = Subordinate Legislation
lt = long title sub = substituted

Fuel Subsidies Act 1998 (Act No. 95, 1998)
Assent date	29 December 1998
Commenced	1 February 1999 (Gaz S2, 1 February 1999)
Financial Relations Agreement (Consequential Provisions) Act 2000 (Act No. 32, 2000)
Assent date	27 June 2000
Commenced	1 July 2000 (s 2)
Statute Law Revision Act 2007 (Act No. 4, 2007)
Assent date	8 March 2007
Commenced	8 March 2007
Revenue Law Reform (Budget Initiatives) Act 2008 (Act No. 23, 2008)
Assent date	30 June 2008
Commenced	pt 1, ss 3, 12(1), 18 and 19: 1 January 2008; ss 7, 10 and 11(1): 6 May 2008; rem: 1 July 2008 (s 2)
Financial Management Amendment Act 2009 (Act No. 15, 2009)
Assent date	18 June 2009
Commenced	18 June 2009
Oaths, Affidavits and Declarations (Consequential Amendments) Act 2010 (Act No. 40, 2010)
Assent date	18 November 2010
Commenced	1 March 2011 (s 2, s 2 Oaths, Affidavits and Declarations Act 2010 (Act No. 39, 2010) and Gaz G7, 16 February 2011, p 4)

Northern Territory Repealed Acts

FUEL SUBSIDIES ACT