Excise Act 1901

Overview

The Excise Act 1901 was enacted by the Australian Parliament to establish a framework for the administration and collection of excise duties on specific goods within Australia. This Act was designed to address issues related to the regulation of manufacturing, storage, and distribution of excisable goods such as tobacco, alcoholic beverages, and fuel, ensuring compliance with excise laws and the prevention of tax evasion. The Excise Act 1901 is part of a series of amendments that have refined its provisions to meet evolving legislative needs, including amendments that introduced new definitions, adjusted penalties, and incorporated new categories of excisable goods. These updates reflect the Australian government's ongoing commitment to maintaining a robust and effective excise system that supports revenue collection while adapting to changes in industry and commerce. The Act empowers the Commissioner of Taxation to enforce its provisions, thereby ensuring that businesses and individuals comply with excise regulations.

Scope and Application

The Excise Act 1901 applies to persons and entities involved in the manufacture, storage, and dealing of excisable goods in Australia. This includes manufacturers, producers, and dealers of goods subject to excise duty, as well as those involved in the production of tobacco products and alcoholic beverages. The Act governs the issuance and administration of licences for these activities, detailing the conditions under which these licences can be granted, suspended, or cancelled. It outlines the duties and responsibilities of licence holders, including the requirement to manufacture, store, or deal in goods only at premises covered by the respective licences, and mandates strict compliance with the Act and the terms of the licence. The Act also imposes penalties for non-compliance, such as manufacturing or dealing in excisable goods without a valid licence, or contravening the terms of a licence. Additionally, the Act extends its application to Commonwealth authorities and businesses involved in the transportation and storage of excisable goods, ensuring that excise duties are properly collected and enforced throughout the supply chain. The Act operates on a national level across Australia, excluding Norfolk Island, the Territory of Christmas Island, and the Territory of Cocos (Keeling) Islands, as specified in the definitions. Certain activities, such as the use of excisable goods in manufacturing other excisable goods, are governed by regulations and by-laws made under the Act, which provide further detail and may include exemptions or specific provisions for particular industries. The application of the Act is further clarified and potentially extended through subordinate instruments, such as regulations and by-laws, which can prescribe conditions, exemptions, or additional requirements not explicitly stated in the primary Act.

Key Provisions

• The Excise Act 1901, as compiled on 28 March 2026, outlines the framework for the administration of excise duty on certain goods in Australia. The Act is incorporated with other Excise Acts and is applied to ensure compliance with excise regulations, particularly focusing on excisable goods such as tobacco, alcoholic beverages, and fuel. The main sections detail the types of licences required for manufacturing, storing, producing, and dealing in these goods, as well as the penalties and consequences for non-compliance.
• Manufacturers, producers, and dealers of excisable goods must hold the appropriate licences to legally manufacture, store, produce, and deal in these goods. For instance, only licensed manufacturers can manufacture excisable goods, and they must do so in accordance with the Act and their licence (Sections 25-36). These licences are subject to conditions that can be varied or cancelled by the Collector of Excise if certain criteria are not met. Strict liability applies to many of these provisions, meaning that intent does not need to be proven if the act or omission occurs.
• The obligations imposed by the Act include the requirement for licence holders to provide security for compliance, keep records, and allow officers access to premises and goods (Sections 16-22). Officers have extensive powers, including the ability to inspect premises, seize goods, and require the provision of samples. Strict penalties are in place for offences such as manufacturing or dealing in excisable goods without a licence, moving excisable goods without permission, and illegal prevention of seizures (Sections 116-124). For example, manufacturing excisable goods without a licence carries a penalty of up to 2 years imprisonment or a fine of 500 penalty units, depending on the circumstances (Section 25).
• The Act imposes severe penalties for breaches, with fines and imprisonment for various offences. For example, knowingly manufacturing or dealing in excisable goods without a licence carries a penalty of up to 2 years imprisonment or a fine of 500 penalty units (Sections 25-36). Other offences, such as unlawfully moving excisable goods, can result in penalties of up to 2 years imprisonment or fines up to 500 penalty units (Sections 116-124). The Act also specifies that if a person commits an offence related to excisable goods, such as unlawfully selling them, they are liable for both the penalty and any forfeiture of the goods (Section 128A). Additionally, certain acts, such as the illegal prevention of seizures or the unlawful removal of goods, can result in fines of up to 50 penalty units or imprisonment for up to 2 years (Sections 118-120).
• In terms of civil and criminal consequences, the Act includes provisions for forfeiture of goods, with excisable goods manufactured or possessed without a licence being subject to forfeiture (Section 116). If an individual unlawfully possesses excisable goods, they face a penalty of up to 2 years imprisonment or a fine of 500 penalty units (Section 117). Furthermore, the Act allows for the issuance of infringement notices as an alternative to prosecution for certain minor offences, such as the unlawful possession of excisable goods, with a maximum penalty of 100 penalty units (Part XA). The Act ensures that all penalties are in addition to any forfeitures, and it provides for the payment of duty, the removal of goods from factories, and the general control of excise goods (Sections 54-65). Failure to comply with these provisions can lead to severe penalties, including fines and imprisonment, as well as the forfeiture of goods.

Legal classification tags

Area of Law

Taxation Law

Instrument

Act

Concepts

Definitions & Interpretation

Commencement Provisions

Regulatory Standards

Licensing & Registration

Enforcement Powers

Prohibited Conduct

Penalties

Delegated & Subordinate Legislation