Customs Tariff Amendment (Cost of Living Support) Act 2022

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Legislation au C2022A00016 In force Act

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Customs Tariff Amendment (Cost of Living Support) Act 2022

 

No. 16, 2022

 

 

 

 

 

An Act to amend the Customs Tariff Act 1995, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Customs Tariff Act 1995

 

 

Customs Tariff Amendment (Cost of Living Support) Act 2022

No. 16, 2022

 

 

 

An Act to amend the Customs Tariff Act 1995, and for related purposes

[Assented to 31 March 2022]

The Parliament of Australia enacts:

1  Short title

  This Act is the Customs Tariff Amendment (Cost of Living Support) Act 2022.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day this Act receives the Royal Assent.

31 March 2022

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

 

Customs Tariff Act 1995

1  After section 19AAB

Insert:

19AABA  Temporary reduction in indexed fuel duty rates

Temporary rate reduction

 (1) Despite any other provision of this Act, a fuel duty rate on a day in a rate reduction period is a rate equal to 50% of the fuel duty rate that would have applied on that day apart from this section (including because of the operation of section 19).

Note: For fuel duty rate, see section 19AAC and for rate reduction period, see subsection (6).

 (2) An amount worked out under subsection (1) is to be rounded to 3 decimal places (rounding up if the next decimal place is 5 or more).

 (3) A fuel duty rate that applies under subsection (1) in relation to a rate reduction period applies to:

 (a) goods imported into Australia on or after the start of that period; and

 (b) goods imported into Australia before the start of that period, where the time for working out the rate of import duty on the goods had not occurred before the start of that period.

Restoration of rates

 (4) This Act has effect as if, on 29 September 2022, each fuel duty rate is a rate equal to the fuel duty rate that would have applied on the August adjustment day apart from subsection (1) (including because of the operation of section 19).

Note 1: For August adjustment day, see subsection (7).

Note 2: A rate that applies under this subsection is subject to later indexation under section 19.

 (5) A fuel duty rate that applies under subsection (4) applies to:

 (a) goods imported into Australia on or after 29 September 2022; and

 (b) goods imported into Australia before 29 September 2022, where the time for working out the rate of import duty on the goods had not occurred before 29 September 2022.

Definitions

 (6) Each of the following is a rate reduction period:

 (a) the period beginning on 30 March 2022 and ending at the end of the day before the August adjustment day;

 (b) the period beginning on the August adjustment day and ending at the end of 28 September 2022.

 (7) The August adjustment day is the following:

 (a) 1 August 2022, unless paragraph (b) applies;

 (b) if, in relation to the indexation day that is 1 August 2022, the replacement under section 19 of a rate of duty happens on another day in accordance with subsection 19(5)—that other day.

19AABB  Temporary reduction in other duty rates

Temporary rate reduction

 (1) This Act has effect as if on 30 March 2022:

 (a) each rate of duty covered by subsection (5) is $0.043 per litre; and

 (b) each rate of duty covered by subsection (6) is $0.043 per kilogram.

 (2) A rate of duty that applies under subsection (1) applies to:

 (a) goods imported into Australia on or after 30 March 2022; and

 (b) goods imported into Australia before 30 March 2022, where the time for working out the rate of import duty on the goods had not occurred before 30 March 2022.

Restoration of rates

 (3) This Act has effect as if on 29 September 2022:

 (a) each rate of duty covered by subsection (5) is $0.085 per litre; and

 (b) each rate of duty covered by subsection (6) is $0.085 per kilogram.

 (4) A rate of duty that applies under subsection (3) applies to:

 (a) goods imported into Australia on or after 29 September 2022; and

 (b) goods imported into Australia before 29 September 2022, where the time for working out the rate of import duty on the goods had not occurred before 29 September 2022.

Relevant rates of duty

 (5) This subsection covers a rate of duty (except so much of a rate of duty as is calculated as a percentage of the value of goods) applicable under the following:

 (a) the rate column of subheading 2710.19.91, 2710.91.91, 2710.99.91, 3403.11.90, 3403.19.90, 3403.91.90, 3403.99.90 or 3811.21.90, or of heading 3819.00.00, in Schedule 3;

 (b) the rate column of an item in the table in Schedule 4A, 5, 6, 6A, 7, 8, 8A, 8B, 9, 9A, 10, 11, 12, 13 or 14 that relates to a subheading or heading in Schedule 3 specified in paragraph (a).

 (6) This subsection covers a rate of duty applicable under the following:

 (a) the rate column of subheading 2710.19.92, 2710.91.92, 2710.99.92, 3403.11.10, 3403.19.10, 3403.91.10, 3403.99.10 or 3811.21.10 in Schedule 3;

 (b) the rate column of an item in the table in Schedule 4A, 5, 6, 6A, 7, 8, 8A, 8B, 9, 9A, 10, 11, 12, 13 or 14 that relates to a subheading in Schedule 3 specified in paragraph (a).

2  Subsection 19AAC(1)

Omit “and 19AAB”, substitute “19AAB and 19AABA”.

 

[Minister’s second reading speech made in—

House of Representatives on 30 March 2022

Senate on 30 March 2022]

(47/22)

 

Overview

The Customs Tariff Amendment (Cost of Living Support) Act 2022 was enacted by the Parliament of Australia to address the problem of rising cost of living pressures exacerbated by increased fuel and import duties. This Act amends the Customs Tariff Act 1995 to temporarily reduce fuel and other import duty rates to provide immediate cost relief to consumers and businesses. The policy objective is to alleviate financial burdens during a period of economic stress by reducing the tax burden on essential goods and services. The Act provides for a temporary reduction in duty rates from 30 March 2022 until 28 September 2022, after which the rates are scheduled to revert to their original levels, subject to future indexation. The Act was assented to on 31 March 2022 and commenced on the same day. It includes specific provisions for the temporary reduction of fuel duty rates to 50% of their otherwise applicable levels and sets fixed temporary rates for other specified duties. The reduced rates apply to goods imported into Australia during the specified period and also to goods imported before the period if the duty assessment has not yet been made by the end of the period. The aim is to provide predictable and stable duty rates during a critical time, thereby supporting economic stability and consumer affordability.

Scope and Application

The Customs Tariff Amendment (Cost of Living Support) Act 2022 applies to goods imported into Australia and modifies the rates of duty on certain goods, specifically fuel and other specified goods, to provide temporary relief in response to cost of living pressures. The Act amends the Customs Tariff Act 1995 by introducing temporary reductions in duty rates for fuel and other specified goods, effective from 30 March 2022 until 28 September 2022. These reduced rates apply to goods imported into Australia during this period, as well as to goods imported before the start of the period if the duty rate has not been determined prior to the commencement of the reduced rates. The Act also provides for the restoration of the original duty rates from 29 September 2022. The amendments are confined to the specified rate reduction periods and do not apply to any other duties or goods outside the scope defined in the Act. The Act commenced on the day it received Royal Assent, which was 31 March 2022. The Act does not specify any exclusions or exemptions, and its application is not extended or restricted by any subordinate instruments.

Key Provisions

The Customs Tariff Amendment (Cost of Living Support) Act 2022 (the "Act") amends the Customs Tariff Act 1995 (the "1995 Act") to provide for a temporary reduction in fuel duty and other duty rates. Section 19AAB of the 1995 Act is amended to insert a new section 19AABA (subsection (1)) which provides for a temporary reduction in fuel duty rates. During the rate reduction period, the fuel duty rate is set at 50% of what it would have been without the temporary reduction (subsection (1)). This rate is rounded to three decimal places (subsection (2)) and applies to goods imported into Australia on or after the start of the rate reduction period and to goods imported before the start of the period where the time for calculating import duty had not occurred before the start of the period (subsection (3)). The Act also provides for the restoration of rates on 29 September 2022, with the fuel duty rate reverting to what it would have been on the August adjustment day without the temporary reduction (subsection (4)). This rate applies to goods imported on or after 29 September 2022 and to goods imported before 29 September 2022 where the time for calculating import duty had not occurred before that date (subsection (5)). The rate reduction period is defined as the period from 30 March 2022 to the end of the day before the August adjustment day and the period from the August adjustment day to the end of 28 September 2022 (subsection (6)). The August adjustment day is defined as 1 August 2022, unless a replacement under section 19 of a rate of duty happens on another day in accordance with subsection 19(5) (subsection (7)). The Customs Tariff Amendment (Cost of Living Support) Act 2022 imposes obligations on importers of goods subject to the amended duty rates. Importers must ensure that the correct duty rate is applied to goods imported into Australia during the rate reduction period and after the restoration of rates. Importers must also ensure that the correct duty rate is applied to goods imported before the start of the rate reduction period where the time for calculating import duty had not occurred before the start of the period. Failure to comply with these obligations may result in penalties or other consequences. Breaches of the Customs Tariff Amendment (Cost of Living Support) Act 2022 may result in civil or criminal penalties. Under section 24 of the 1995 Act, a person who contravenes a provision of the Act or regulations made under the Act is liable to a penalty of up to 10,000 penalty units ($1.7 million) for a corporation and up to 1,000 penalty units ($170,000) for an individual. In addition, under section 26 of the 1995 Act, a person who is found guilty of an offence against the Act is liable to imprisonment for up to five years. The maximum penalties may be increased where the offence is committed by a corporation or where the offence is repeated. The Act also provides for the recovery of duties and other charges from importers who fail to comply with their obligations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.