Excise Amendment Regulation 2013 (No. 1)

Overview

The Excise Amendment Regulation 2013 (No. 1) was enacted to amend the Excise Regulations 1925 under the authority of Section 164 of the Excise Act 1901, allowing the Governor-General to prescribe regulations as necessary to implement the Act. The key issue addressed by this regulation is to extend the period during which international travellers can acquire goods free of excise through the sealed bag scheme (SBS) from 30 days to 60 days prior to their departure from Australia. This change aims to increase the flexibility and convenience for travellers, ensuring that the goods remain unconsumed in Australia, and thus exempt from Australian taxes such as excise, customs duty, GST, and Wine Equalisation Tax. This legislative instrument was issued by the Assistant Treasurer and was designed without any changes resulting from consultation. It is a legislative instrument under the Legislative Instruments Act 2003 and was registered on the Federal Register of Legislative Instruments, commencing on the day after registration.

Scope and Application

The Excise Amendment Regulation 2013 (No. 1) amends the Excise Regulations 1925 to modify the sealed bag scheme (SBS) under the Excise Act 1901. This scheme allows international travellers to buy goods tax-free from duty-free stores and certain retail stores, provided the goods are transported out of Australia in a sealed bag, ensuring they are not consumed domestically and thus exempt from Australian taxes. The Regulation extends the allowable period for acquiring goods under the SBS from 30 days to 60 days prior to a traveller's departure. This change aims to enhance flexibility for travellers while maintaining the integrity of the scheme by ensuring that goods remain outside Australia. The Regulation applies to acquisitions made 60 days or more after it is registered on the Federal Register of Legislative Instruments, and it is a legislative instrument under the Legislative Instruments Act 2003. The Regulation does not specify any exclusions or exemptions and is compatible with human rights as it does not engage any applicable rights or freedoms.

Key Provisions

The Excise Amendment Regulation 2013 (No. 1) amends the Excise Regulations 1925 to modify the sealed bag scheme (SBS), which is detailed in Section 164 of the Excise Act 1901. Specifically, the Regulation extends the time frame during which international travellers can purchase goods tax-free through the SBS from 30 days to 60 days prior to their departure from Australia (Section 1). This change allows travellers more flexibility in planning their purchases, ensuring that the goods remain sealed and are taken out of the country to avoid Australian taxes. Under the amended Regulation, international travellers can now acquire goods tax-free up to 60 days before their departure, provided they are purchased through authorised duty-free stores or certain retail stores participating in the SBS (Section 2). This extended period is designed to benefit travellers by providing them with additional time to make their purchases without incurring excise, customs duty, GST, or Wine Equalisation Tax in Australia. The Regulation imposes obligations on the parties involved, primarily those who are authorised to sell goods through the SBS. These entities must ensure that goods are properly sealed and transported out of Australia within the stipulated timeframe. The Regulation applies to acquisitions made 60 days or more after its registration on the Federal Register of Legislative Instruments (Section 3). It is important for retailers and travellers alike to be aware of these changes to ensure compliance with the new requirements. Failure to comply with the provisions of the Excise Amendment Regulation 2013 (No. 1) can result in penalties. However, the specific penalties for breaches are not detailed within the Regulation itself, and would likely be found in the Excise Act 1901 or other related legislation. Non-compliance could potentially lead to the imposition of fines or other civil or criminal consequences, although the exact nature of these consequences would depend on the specific circumstances of the breach and the applicable laws. The Regulation, however, clearly states that it is compatible with human rights, ensuring that it does not engage any of the rights or freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.