About crude oil excise in Australia
Crude oil excise in Australia is the tax that the Australian Government imposes on eligible crude oil and condensate production from coastal waters, onshore areas, and the North West Shelf project area (exploration permit areas WA-1-P and WA-28-P) in Australian waters.
Excise liability is worked out by applying the relevant crude oil excise rate to the volume weighted average of realised f.o.b. price (VOLWARE price). The first 30 million barrels of crude oil and condensate from a field are excise exempt.
The crude oil classifications, following amendments to the Excise Tariff Act 1921 passed in September 2001 are:
- 'old' oil is crude oil discovered before 18 September 1975
- 'old' oil is excised on a progressive scale with a top marginal rate of 55 per cent of the VOLWARE price
- 'new' oil is crude oil discovered after 18 September 1975
- 'new' oil is excised on a progressive scale with a top marginal excise rate of 30 per cent
- 'intermediate scale' oil is crude oil from fields discovered before 18 September 1975 but not developed before 23 October 1984
- 'intermediate scale' oil is excised on a progressive scale with a top marginal rate of 55 per cent.
The Excise Tariff Amendment (Condensate) Bill 2008 and the Excise Legislation Amendment (Condensate) Bill 2008 remove the previous exemption of condensate from the Crude Oil Excise regime, with effect from 13 May 2008.
The Excise Tariff Amendment (Condensate) Bill 2011 and the Excise Legislation Amendment (Condensate) Bill 2011 amend the Excise Tariff Act 1921 to clarify and confirm the area encompassed by the Rankin Trend condensate production area located within the North West Shelf.
The Crude Oil Excise Rates document (see Related documents) shows the different excise rates applicable to different annual crude oil and condensate sales volumes.
Related documents
More information
For more information about crude oil excise in Australia visit the Australian Taxation Office website.