Excise Tariff Amendment (Tobacco) Act 2014

Administered by Department of the Treasury

Legislation au C2014A00009 In force Act

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Excise Tariff Amendment (Tobacco) Act 2014

 

No. 9, 2014

 

 

 

 

 

An Act to amend the law relating to excise tariffs, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Part 1—Increase in tobacco duty rates on 1 December 2013

Excise Tariff Act 1921

Part 2—Indexation

Excise Tariff Act 1921

Part 3—Consequential amendments

Division 1—General

Excise Tariff Act 1921

Division 2—Amendments commencing after Carbon Tax Repeal provisions commence

Excise Tariff Act 1921

 

 

 

Excise Tariff Amendment (Tobacco) Act 2014

No. 9, 2014

 

 

 

An Act to amend the law relating to excise tariffs, and for related purposes

[Assented to 18 March 2014]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Excise Tariff Amendment (Tobacco) Act 2014.

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

Provision(s)

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.

18 March 2014

2.  Schedule 1, Parts 1 and 2

1 December 2013.

1 December 2013

3.  Schedule 1, Part 3, Division 1

1 December 2013.

1 December 2013

4.  Schedule 1, Part 3, Division 2

Immediately after the commencement of Schedule 1 to the Excise Tariff Amendment (Carbon Tax Repeal) Act 2014.

However, if that Schedule does not commence, the provision(s) do not commence at all.

1 July 2014

Note:  This table relates only to the provisions of this Act as originally enacted.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  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Part 1—Increase in tobacco duty rates on 1 December 2013

Excise Tariff Act 1921

1  Schedule (cell at table subitem 5.1, column headed “Rate of Duty”)

Repeal the cell, substitute:

$0.40197 per stick

2  Schedule (cell at table subitem 5.5, column headed “Rate of Duty”)

Repeal the cell, substitute:

$502.48 per kilogram of tobacco content

3  Application of amendments

The amendments made by this Part apply in relation to goods entered for home consumption on or after 1 December 2013.

Part 2—Indexation

Excise Tariff Act 1921

4  Section 6A

Repeal the section, substitute:

6A  Indexation of alcohol duty rates

 (1) If the indexation factor for an indexation day is greater than 1, each rate of duty set out in item 1, 2 or 3 of the Schedule (each alcohol duty rate) is, on that day, replaced by the rate of duty worked out using the formula:

Note: For indexation factor see subsection (3) and for indexation day see subsection (10).

 (2) The amount worked out under subsection (1) is to be rounded to the same number of decimal places as the alcohol duty rate was on the day before the indexation day (rounding up if the next decimal place is 5 or more).

Indexation factor

 (3) The indexation factor for an indexation day is the number worked out using the formula:

Note: For index number, reference quarter and base quarter see subsection (10).

 (4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

Effect of delay in publication of index number

 (5) If the index number for the most recent reference quarter before the indexation day is published by the Statistician on a day (the publication day) that is not at least 5 days before the indexation day, then, despite subsection (1), any replacement of an alcohol duty rate under subsection (1) happens on the fifth day after the publication day.

Effect of Excise Tariff alteration

 (6) If an Excise Tariff alteration proposed in the Parliament proposes to substitute, on and after a particular day, a rate for an alcohol duty rate, treat that substitution as having had effect on and after that day for the purposes of this section.

Changes to CPI index reference period and publication of substituted index numbers

 (7) Amounts are to be worked out under this section:

 (a) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and

 (b) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

Application of replacement rate

 (8) If an alcohol duty rate is replaced under this section on a particular day, the replacement rate applies in relation to goods entered for home consumption on or after that day.

Publication of replacement rate

 (9) The CEO must, on or as soon as practicable after the day an alcohol duty rate is replaced under this section, publish a notice in the Gazette advertising the replacement rate and the goods it applies to.

Definitions

 (10) In this section:

base quarter means the June quarter or December quarter that has the highest index number of all the June quarters and December quarters that occur:

 (a) before the most recent reference quarter before the indexation day; and

 (b) after the June quarter of 1983.

December quarter means a period of 3 months starting on 1 October.

indexation day means each 1 February and 1 August.

index number, for a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Statistician in relation to that quarter.

June quarter means a period of 3 months starting on 1 April.

reference quarter means the June quarter or December quarter.

6AA  Indexation of tobacco duty rates

 (1) If the indexation factor for an indexation day is at least 1, each rate of duty set out in item 5 of the Schedule (each tobacco duty rate) is, on that day, replaced by the rate of duty worked out using the formula:

Note: For indexation factor see subsections (3) and (5), for indexation day see subsection (12) and for additional factor see subsection (6).

 (2) The amount worked out under subsection (1) is to be rounded to the same number of decimal places as the tobacco duty rate was on the day before the indexation day (rounding up if the next decimal place is 5 or more).

Indexation factor

 (3) The indexation factor for an indexation day is the number worked out using the formula:

Note: For AWOTE amount, reference quarter and base quarter see subsection (12).

 (4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

 (5) Despite subsection (3), treat the indexation factor for 1 September 2014, 1 September 2015 or 1 September 2016 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) 1.125, if the indexation day is 1 September 2014, 1 September 2015 or 1 September 2016; or

 (b) 1, for each other indexation day.

Effect of delay in publication of AWOTE amount

 (7) If the AWOTE amount for the most recent reference quarter before the indexation day is published by the Statistician on a day (the publication day) that is not at least 5 days before the indexation day, then, despite subsection (1), any replacement of a tobacco duty rate under subsection (1) happens on the fifth day after the publication day.

Effect of Excise Tariff alteration

 (8) If an Excise Tariff alteration proposed in the Parliament proposes to substitute, on and after a particular day, a rate for a tobacco duty rate, treat that substitution as having had effect on and after that day for the purposes of this section.

Publication of substituted AWOTE amounts

 (9) If the Statistician publishes an estimate of full‑time adult average weekly ordinary time earnings for persons in Australia for a period for which such an estimate was previously published by the Statistician, the publication of the later estimate is to be disregarded for the purposes of this section.

Application of replacement rate

 (10) If a tobacco duty rate is replaced under this section on a particular day, the replacement rate applies in relation to goods entered for home consumption on or after that day.

Publication of replacement rate

 (11) The CEO must, on or as soon as practicable after the day a tobacco duty rate is replaced under this section, publish a notice in the Gazette advertising the replacement rate and the goods it applies to.

Definitions

 (12) In this section:

AWOTE amount, for a quarter, means the estimate of the full‑time adult average weekly ordinary time earnings for persons in Australia for the middle month of the quarter published by the Statistician in relation to that month.

base quarter means the June quarter or December quarter that has the highest AWOTE amount of all the June quarters and December quarters that occur:

 (a) before the most recent reference quarter before the indexation day; and

 (b) after the December quarter of 2012.

December quarter means a period of 3 months starting on 1 October.

indexation day means each 1 March and 1 September.

June quarter means a period of 3 months starting on 1 April.

reference quarter means the June quarter or December quarter.

5  Application of amendments

(1) Section 6A of the Excise Tariff Act 1921, as inserted by this Part, applies in relation to the indexation day that is 1 February 2014 and each later indexation day.

(2) Section 6AA of the Excise Tariff Act 1921, as inserted by this Part, applies in relation to the indexation day that is 1 March 2014 and each later indexation day.

Part 3—Consequential amendments

Division 1—General

Excise Tariff Act 1921

6  Subsection 3(1) (definition of index number)

Repeal the definition.

7  Subsection 5(1) (note)

After “Sections 6A,”, insert “6AA,”.

8  Schedule (note 2 to Schedule heading)

After “Sections 6A,”, insert “6AA,”.

9  Schedule (table heading)

Repeal the heading, substitute:

Excise duties (subject to sections 6A, 6AA, 6FA and 6FB)

Division 2—Amendments commencing after Carbon Tax Repeal provisions commence

Note: This Division only applies if Schedule 1 to the Excise Tariff Amendment (Carbon Tax Repeal) Act 2014 commences.

Excise Tariff Act 1921

10  Subsection 5(1) (note)

Omit “Section 6A effectively changes”, substitute “Sections 6A and 6AA effectively change”.

11  Schedule (note 2 to Schedule heading)

Omit “Section 6A effectively changes”, substitute “Sections 6A and 6AA effectively change”.

12  Schedule (table heading)

Repeal the heading, substitute:

Excise duties (subject to sections 6A and 6AA)

 

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 26 February 2014

Senate on 5 March 2014]

 

(11/14)

 

Overview

The Excise Tariff Amendment (Tobacco) Act 2014, enacted on 18 March 2014, is an Act of the Parliament of Australia aimed at amending the excise tariffs, specifically addressing the duties on tobacco products. This Act was introduced to address the need to adjust tobacco duty rates and introduce indexation mechanisms to account for inflation and changes in earnings. The primary policy objective of this legislation is to ensure that excise duties on tobacco products are adjusted in line with economic indicators, thereby maintaining the revenue base while also reflecting the changing economic environment. The Act makes specific amendments to the Excise Tariff Act 1921 to increase the duty rates on tobacco products effective from 1 December 2013 and introduces indexation provisions for both alcohol and tobacco duties to be applied from specified dates, ensuring that duty rates are updated regularly in line with economic changes.

Scope and Application

The Excise Tariff Amendment (Tobacco) Act 2014 amends the Excise Tariff Act 1921 to alter the excise duties on tobacco products, effective from 1 December 2013. This Act applies to all tobacco products entered for home consumption on or after this date, thereby affecting the tobacco industry and all entities involved in the production, importation, and distribution of tobacco goods in Australia. The amendments include an increase in the excise duty rates on tobacco products and the introduction of an indexation mechanism for these duties, ensuring that the rates adjust with inflation from 1 February 2014 onwards. The Act applies across the Commonwealth of Australia, affecting all states and territories uniformly. There are no specific exclusions or exemptions detailed in the Act, but the application of these amendments may be influenced by any subsequent legislative changes or subordinate instruments that further define the scope or administration of excise duties. The commencement of certain consequential amendments is contingent upon the commencement of the Excise Tariff Amendment (Carbon Tax Repeal) Act 2014, with a default commencement date of 1 July 2014 if the latter does not commence.

Key Provisions

The Excise Tariff Amendment (Tobacco) Act 2014 amends the Excise Tariff Act 1921 to increase tobacco duty rates, establish indexation mechanisms, and make consequential amendments. Section 1 of the Act provides for its citation, while Section 2 outlines the commencement of its provisions, with different dates specified for various sections and amendments. The Act includes three parts in its Schedule: Part 1 increases tobacco duty rates effective 1 December 2013; Part 2 introduces indexation provisions for tobacco duty rates; and Part 3 contains consequential amendments that take effect on specified dates. The Act imposes several obligations and requirements on the parties it governs. Firstly, the amendments in Part 1 of the Schedule increase the duty rates for tobacco products, with specific rates set for per stick and per kilogram of tobacco content. These rates apply to goods entered for home consumption on or after 1 December 2013. Secondly, Part 2 introduces indexation mechanisms for tobacco duty rates, which are adjusted based on changes in the Australian Wage Price Index (AWOTE) and the Consumer Price Index (CPI). The indexation provisions are designed to ensure that duty rates keep pace with inflation and wage growth, with adjustments made on specified indexation days. Breach of the provisions of this Act can result in various civil and criminal consequences. The Excise Tariff Act 1921, as amended by this Act, includes provisions for offences and penalties related to the non-compliance with duty requirements. For example, penalties may be imposed for the evasion of duty, incorrect classification of goods, and failure to comply with record-keeping requirements. The maximum penalties for these offences can include substantial fines and, in some cases, imprisonment. The specific penalties are detailed in the Excise Tariff Act 1921 and may vary depending on the nature and severity of the breach.

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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.