Excise Tariff Amendment (Tobacco) Act 2024

Administered by Department of the Treasury

Legislation au C2024A00072 In force Act

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Excise Tariff Amendment (Tobacco) Act 2024

No. 72, 2024

 

 

 

 

 

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 (Tobacco) Act 2024

No. 72, 2024

 

 

 

An Act to amend the Excise Tariff Act 1921, and for related purposes

[Assented to 9 July 2024]

The Parliament of Australia enacts:

1  Short title

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Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

 

Excise Tariff Act 1921

1  Subsections 6AA(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 6AAB(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 6AAB(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 6AA(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 6AA(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 6AA(7) has the effect of replacing a rate of duty on a later day—that later day.

4  The Schedule (note 2)

Omit “and 5”, substitute “, 5 and 10”.

5  Transitional provisions

(1) Section 6AA of the Excise Tariff Act 1921 (as in force immediately before 1 September 2023) is taken to have had no effect in relation to each transitional indexation day.

(2) Instead, the tobacco duty rate is replaced under section 6AA of the Excise Tariff Act 1921 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 6AAB of the Excise Tariff Act 1921, 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]

(27/24)

 

Overview

The Excise Tariff Amendment (Tobacco) Act 2024 was enacted by the Parliament of Australia to amend the Excise Tariff Act 1921, addressing specific issues related to the taxation of tobacco products. This Act aims to adjust the excise duty rates on tobacco products to better reflect changes in economic conditions and policy objectives aimed at reducing tobacco consumption. The Act was assented to on 9 July 2024 and commenced on 1 September 2023, with specific amendments and transitional provisions to ensure a smooth implementation. The policy objective of the Act is to update the excise duty framework to support public health initiatives and revenue generation from tobacco products.

Scope and Application

The Excise Tariff Amendment (Tobacco) Act 2024 applies to the amendments of the Excise Tariff Act 1921, specifically concerning the excise duties on tobacco products. This Act affects all entities involved in the manufacture, importation, or supply of tobacco products within Australia. It modifies the calculation of excise duties by introducing new indexation factors and weight conversion rates, effective from 1 September 2023. The Act has a nationwide reach, applying across all states and territories in Australia, and is subject to amendments through subordinate instruments. Notably, the Act does not specify any exclusions or exemptions; however, the transitional provisions ensure that certain indexation days are adjusted to account for the changes introduced by this legislation.

Key Provisions

The Excise Tariff Amendment (Tobacco) Act 2024 primarily amends the Excise Tariff Act 1921 to adjust the excise duties on tobacco products. The key sections of this amendment include the modification of subsections 6AA(5) and (6) to set specific indexation factors for tobacco excise duties. These indexation factors are designed to maintain the duty's real value over time by preventing the duty from falling below a certain threshold. Section 6AAB(2) has been updated to specify new weight conversion factors for tobacco products, which will apply at different times as defined in the Act. Additionally, the replacement days for these conversion factors are clearly outlined in subsections 6AAB(4) to (7), with specific dates provided for each change. This Act imposes several obligations on the parties involved in the tobacco industry, primarily tobacco manufacturers and importers. They must ensure compliance with the new indexation and conversion factors as specified by the Act. The duty rates for tobacco products must be recalculated in accordance with the amended sections of the Excise Tariff Act 1921, and any adjustments must be reflected in their pricing and reporting to the relevant authorities. The transitional provisions ensure that any changes are implemented smoothly, with specific rates applied to transitional indexation days as defined in the Act. Breaches of the provisions set out in this Act can lead to significant penalties. The maximum penalties for non-compliance with excise duty regulations can include fines and, in severe cases, imprisonment. The specific penalties are detailed in the Excise Tariff Act 1921, which this Act amends. For instance, knowingly or recklessly making a false statement in a document related to excise duty can result in penalties of up to $22,000 for individuals and $110,000 for bodies corporate. Additionally, failure to declare or pay the correct amount of duty can lead to penalties based on the amount of duty evaded, often resulting in substantial financial penalties.

Legal classification tags

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.