Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018
No. 137, 2018
An Act to amend the Excise Tariff Act 1921, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 1—Amendments
Excise Tariff Act 1921
Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018
No. 137, 2018
An Act to amend the Excise Tariff Act 1921, and for related purposes
[Assented to 29 November 2018]
The Parliament of Australia enacts:
1 Short title
This Act is the Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018.
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. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 29 November 2018 |
2. Schedule 1 | At the same time as Schedule 3 to the Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Act 2018 commences. However, the provisions do not commence at all if that Schedule does not commence. | 1 January 2019 |
Note: This table relates only to the provisions of this Act as originally enacted.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Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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
Excise Tariff Act 1921
1 Subsection 3(1)
Insert:
blended tobacco goods has the meaning given by subsection 6AAC(1).
2 After section 6AAB
Insert:
6AAC Duty payable on blended tobacco goods
(1) Work out the duty payable under this Act on goods (the blended tobacco goods) that would, apart from this section, be classified to subitem 5.1 or 5.5 of the Schedule and that consist of constituents that are classified to either of those subitems, or to subitem 5.8 of the Schedule because of a previous operation of this section, as follows:
Method statement
Step 1. Work out the amount of duty that would, apart from this section, be payable on the blended tobacco goods.
Step 2. Add up the amount of duty previously payable on each constituent that is classified to subitem 5.1, 5.5 or 5.8 of the Schedule.
Step 3. Subtract the result of step 2 from the result of step 1.
Step 4. The duty payable on the blended tobacco goods is:
(a) the result of step 3; or
(b) if the result of step 3 is less than zero—zero.
(2) If a constituent of the blended tobacco goods was imported, assume for the purposes of subsection (1) that:
(a) the constituent was manufactured in Australia when it was imported; and
(b) if customs duty was paid on the constituent—there was a payment of Excise duty equal to the lesser of the following amounts (or either of them if they are equal):
(i) the amount of Excise duty that would have been payable on the constituent had it been manufactured in Australia when it was imported;
(ii) the amount of the customs duty paid.
3 Section 6G (heading)
Before “blended goods”, insert “certain fuel”.
4 Schedule (cell at table subitem 5.5, column headed “Description of goods”)
Repeal the cell, substitute:
Either: (a) not in stick form; or (b) in stick form exceeding in weight 0.8 grams per stick actual tobacco content |
5 Schedule (at the end of table item 5)
Add:
| 5.8 | Blended tobacco goods | The amount of duty worked out under section 6AAC |
6 Application of amendments
The amendments made by this Schedule apply in relation to tobacco goods manufactured on or after 1 July 2019.
[Minister’s second reading speech made in—
House of Representatives on 20 September 2018
Senate on 18 October 2018]
Overview
The Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018 was enacted to amend the Excise Tariff Act 1921, focusing on the collection of tobacco duties at the point of manufacture. The Act was introduced to address the issue of illicit tobacco trade and ensure that excise duties on blended tobacco goods are accurately collected. The Parliament of Australia enacted this legislation to ensure that the excise duties on blended tobacco goods are properly accounted for, thereby providing a more effective means of collecting tobacco duties and combating the black market. The policy objective of this amendment is to strengthen the regulation of tobacco products and improve the collection of excise duties to support public health initiatives and deter illicit tobacco trade.
The Act specifies that the amendments apply to tobacco goods manufactured on or after 1 July 2019. The commencement provisions detail that certain sections of the Act came into effect on the day of Royal Assent, 29 November 2018, while other provisions related to the Schedule were set to commence on 1 January 2019, contingent upon the commencement of related provisions in another Act. This staggered approach ensures that the amendments are implemented in a coordinated manner with other related legislative changes.
Scope and Application
The Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018 amends the Excise Tariff Act 1921 by altering the way excise duties are collected on certain tobacco goods. Specifically, the Act applies to tobacco goods, including blended tobacco goods, that are manufactured in Australia on or after 1 July 2019. The legislation is designed to ensure that the duty payable on blended tobacco goods is calculated correctly by considering the duty previously payable on the constituents. The Act applies nationally across Australia, as it amends a Commonwealth Act. However, the specific details of duty calculations and the definition of blended tobacco goods are further refined through the Excise Tariff Regulations 2001, which are subordinate instruments that extend the application of the Act. There are no explicit exclusions or exemptions stated in the Act itself, though the scope of application is inherently limited to the specified goods and the manufacturing date.
Key Provisions
The Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Act 2018 amends the Excise Tariff Act 1921. The key amendments are detailed in Schedule 1 of the 2018 Act, which introduce a new method for calculating excise duty on blended tobacco goods. Under the new provisions, the duty payable on blended tobacco goods is determined by subtracting the sum of the duty on each constituent from the duty that would otherwise apply (section 6AAC(1)). Furthermore, section 6AAC(2) addresses the situation where constituents of blended tobacco goods are imported, specifying that the duty on these constituents is calculated as if they were manufactured in Australia, with the excise duty equal to the lesser of the duty that would have been payable or the customs duty paid.
The Excise Tariff Amendment Act imposes several obligations on entities involved in the manufacture and importation of blended tobacco goods. Manufacturers are required to determine the duty on blended tobacco goods using the prescribed method, taking into account the duty on each constituent (section 6AAC(1)). Additionally, if constituents are imported, manufacturers must calculate the duty as if the constituents were manufactured in Australia and ensure that the excise duty is equivalent to the lesser of the potential duty or the customs duty paid (section 6AAC(2)). These obligations ensure that the correct amount of excise duty is paid on blended tobacco goods, aligning with the new legislative requirements.
Failure to comply with the provisions of the Excise Tariff Amendment Act may result in legal consequences. While the Act itself does not explicitly detail penalties for non-compliance, the Excise Tariff Act 1921 generally includes provisions for penalties in cases of non-compliance. Typically, penalties for non-compliance with excise duty regulations can include fines and potential criminal charges, depending on the severity and intent behind the non-compliance. It is essential for entities to adhere to the requirements outlined in the Excise Tariff Amendment Act to avoid facing these potential penalties.