Customs Tariff Amendment (Tobacco) Act 2024

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Legislation au C2024A00071 In force Act

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Customs Tariff Amendment (Tobacco) Act 2024

No. 71, 2024

 

 

 

 

 

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 (Tobacco) Act 2024

No. 71, 2024

 

 

 

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

[Assented to 9 July 2024]

The Parliament of Australia enacts:

1  Short title

  This Act is the Customs Tariff Amendment (Tobacco) Act 2024.

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

1 September 2023.

1 September 2023

Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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  Subsections 19AB(5) and (6)

Repeal the subsections, substitute:

 (5) Despite subsection (3), treat the indexation factor for 1 September 2023, 1 September 2024 and 1 September 2025 as 1 if, on that day, it would otherwise be less than 1.

Additional factor

 (6) The additional factor for an indexation day is:

 (a) 1.05, if the indexation day is 1 September 2023, 1 September 2024 or 1 September 2025; or

 (b) 1, for each other indexation day.

2  Subsection 19ACA(2)

Repeal the subsection, substitute:

 (2) The weight conversion factor is:

 (a) for a day on or after the first replacement day and before the second replacement day—0.000675; or

 (b) for a day on or after the second replacement day and before the third replacement day—0.00065; or

 (c) for a day on or after the third replacement day and before the fourth replacement day—0.000625; or

 (d) for a day on or after the fourth replacement day—0.0006.

3  Subsections 19ACA(4) to (7)

Repeal the subsections, substitute:

Replacement days

 (4) For the purposes of this section, the first replacement day is 1 September 2023.

 (5) For the purposes of this section, the second replacement day is:

 (a) 1 September 2024; or

 (b) if, in relation to the indexation day that is 1 September 2024, subsection 19AB(7) has the effect of replacing a rate of duty on a later day—that later day.

 (6) For the purposes of this section, the third replacement day is:

 (a) 1 September 2025; or

 (b) if, in relation to the indexation day that is 1 September 2025, subsection 19AB(7) has the effect of replacing a rate of duty on a later day—that later day.

 (7) For the purposes of this section, the fourth replacement day is:

 (a) 1 September 2026; or

 (b) if, in relation to the indexation day that is 1 September 2026, subsection 19AB(7) has the effect of replacing a rate of duty on a later day—that later day.

4  Transitional provisions

(1) Section 19AB of the Customs Tariff Act 1995 (as in force immediately before 1 September 2023) is taken to have had no effect in relation to each transitional indexation day.

(2) Instead, each tobacco duty rate is replaced under section 19AB of the Customs Tariff Act 1995 in relation to each transitional indexation day in accordance with that section, as amended by this Schedule.

(3) The applicable rate, within the meaning of section 19ACA of the Customs Tariff Act 1995, on a day on or after 1 September 2023 is to be worked out under that Act, as amended by this Schedule.

(4) In this item:

transitional indexation day means:

 (a) 1 September 2023; and

 (b) if this Act receives the Royal Assent on or after 1 March 2024—1 March 2024.

 

 

[Minister’s second reading speech made in—

House of Representatives on 20 March 2024

Senate on 14 May 2024]

(28/24)

 

Overview

The Customs Tariff Amendment (Tobacco) Act 2024 was enacted by the Parliament of Australia to modify the Customs Tariff Act 1995, specifically addressing tobacco-related tariffs. This Act aims to ensure that the rates of duty on tobacco products are appropriately indexed and adjusted over time to maintain their effectiveness in achieving public health objectives. Commencing on 1 September 2024, the Act introduces amendments to the duty rates and indexation mechanisms for tobacco products, ensuring that the regulatory framework remains aligned with policy goals such as reducing tobacco consumption and generating revenue for health-related initiatives. This legislative change underscores the government's commitment to addressing the public health challenges associated with tobacco use.

Scope and Application

The Customs Tariff Amendment (Tobacco) Act 2024 is a Commonwealth statute that amends the Customs Tariff Act 1995. This Act applies to entities involved in the importation of tobacco products into Australia, as well as to the Australian Government and its agencies responsible for customs duties and tariff administration. It specifically targets the calculation and application of customs duties on tobacco products, thereby affecting industries involved in tobacco manufacturing, distribution, and importation. The Act does not explicitly state any exclusions or exemptions; however, its primary focus is on tobacco products, suggesting that it does not extend to other goods. The geographic reach of the Act is national, applying uniformly across Australia. The Act itself is the primary instrument, but its application may be extended or refined through subordinate regulations or administrative guidelines issued under the Customs Tariff Act 1995. The Act came into force on 1 September 2023, with specific transitional provisions to ensure a smooth implementation of the new duty rates and indexation factors for tobacco products.

Key Provisions

The Customs Tariff Amendment (Tobacco) Act 2024 (Act) makes significant amendments to the Customs Tariff Act 1995 (Cth), specifically targeting tobacco products. Under Section 1 of the Act, the indexation factor for tobacco duty rates for the years 2023, 2024, and 2025 is set to a fixed value of 1, irrespective of the actual indexation rate. This is outlined in the amended Subsection 19AB(5) and (6). Additionally, the Act introduces a new Subsection 19ACA(2), which specifies a phased reduction in the weight conversion factor for tobacco products over a series of replacement days. These replacement days are detailed in Subsections 19ACA(4) to (7) and are set for 1 September 2023, 1 September 2024, 1 September 2025, and 1 September 2026. The Act imposes specific obligations on importers, manufacturers, and distributors of tobacco products. Importers and manufacturers must comply with the new indexation and conversion factors as specified by the Act, ensuring that duty calculations align with the legislative amendments. Distributors must ensure that their pricing and duty calculations reflect the correct indexation and conversion factors, especially as these are phased in over the specified replacement days. Failure to comply with these requirements may result in incorrect duty payments, leading to potential legal and financial repercussions. The Act also outlines potential penalties for non-compliance. While the Act does not explicitly state the penalties for breach, violations of the Customs Tariff Act 1995 generally attract civil and criminal penalties. Civil penalties may include fines and duty repayments, while criminal penalties may involve imprisonment and fines, depending on the severity and intent of the breach. The precise penalties are typically detailed in the primary legislation, the Customs Tariff Act 1995, which must be consulted for exact details.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Transitional Provisions

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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.