Stabilised Crude Petroleum Oil (SCPO) and condensate produced onshore or within three nautical miles of the Australian coastline is subject to a production excise. The company needs to hold an excise licence to produce SCPO and condensate from these areas.
No excise is payable for the first 4767.3 megalitres (30 million barrels) of SCPO or condensate from a particular field, and a subsequent quantity of annual production. Once this initial threshold quantity produced by a field is exceeded, future production may attract excise duty depending on quantities extracted. Currently there are no petroleum fields in South Australia which have reached this trigger.
In addition to the production duty applicable under items 20 and 21 of the Schedule to the Excise Tariff Act 1921, these products can also attract excise duty under item 10 of the Schedule unless they're used:
- in the recovery, production, pipeline transportation or refining of condensate or stabilised crude oil
- as feedstock at a licensed refinery.
For more information on Federal Excise Duty, please see the Australian Taxation Office website.