Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017

Administered by Department of the Treasury

Legislation au C2017A00080 In force Act

Legislation content

 

 

 

 

 

 

Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017

 

No. 80, 2017

 

 

 

 

 

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 Duty Harmonisation) Act 2017

No. 80, 2017

 

 

 

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

[Assented to 15 August 2017]

The Parliament of Australia enacts:

1  Short title

  This Act is the Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017.

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

31 August 2017.

31 August 2017

Note: This table relates only to the provisions of this Act as originally enacted.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  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Repeal the heading, substitute:

6AA  Indexing of tobacco duty rate under subitem 5.1 of the Schedule

2  Subsection 6AA(1)

Omit “each rate of duty set out in item 5 of the Schedule (each tobacco duty rate)”, substitute “the rate of duty set out in subitem 5.1 of the Schedule (the tobacco duty rate)”.

3  Subsection 6AA(2)

Repeal the subsection, substitute:

 (2) The amount worked out under subsection (1) is to be rounded to 5 decimal places (rounding up if the sixth decimal place is 5 or more).

4  After section 6AA

Insert:

6AAB  Tobacco duty rate under subitem 5.5 of the Schedule

 (1) For the purposes of subitem 5.5 of the Schedule, the applicable rate on a day is the amount worked out using the formula:

  

 (2) The weight conversion factor is:

 (a) for a day on or after the first replacement day and before the second replacement day—0.000775; or

 (b) for a day on or after the second replacement day and before the third replacement day—0.00075; or

 (c) for a day on or after the third replacement day and before the fourth replacement day—0.000725; or

 (d) for a day on or after the fourth replacement day—0.0007.

Rounding

 (3) The amount worked out under subsection (1) is to be rounded to 2 decimal places (rounding up if the third decimal place is 5 or more).

Replacement days

 (4) For the purposes of this section, the first replacement day is:

 (a) 1 September 2017; or

 (b) if, in relation to the indexation day that is 1 September 2017, subsection 6AA(7) has the effect of replacing a rate of duty on a later day—that later day.

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

 (a) 1 September 2018; or

 (b) if, in relation to the indexation day that is 1 September 2018, 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 2019; or

 (b) if, in relation to the indexation day that is 1 September 2019, 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 2020; or

 (b) if, in relation to the indexation day that is 1 September 2020, subsection 6AA(7) has the effect of replacing a rate of duty on a later day—that later day.

Application of applicable rate

 (8) If the applicable rate changes on a particular day, the changed rate applies in relation to goods entered for home consumption on or after that day.

Publication

 (9) The CEO must, on or as soon as practicable after the day the rate of duty set out in subitem 5.1 of the Schedule is replaced under section 6AA, publish a notice in the Gazette advertising:

 (a) the rate of duty under subitem 5.5 of the Schedule on that day; and

 (b) the goods to which subitem 5.5 of the Schedule applies.

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

Repeal the cell, substitute:

Applicable rate (see section 6AAB) per kilogram of tobacco content

6  Application provision

(1) The amendments made by items 4 and 5 apply in relation to goods entered for home consumption on or after the first replacement day.

(2) This item has effect despite subsection 5(2) of the Excise Tariff Act 1921.

(3) For the purposes of this item, first replacement day has the same meaning as in section 6AAB of the Excise Tariff Act 1921 as amended by this Act.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 1 June 2017

Senate on 8 August 2017]

(111/17)

 

 

Overview

The Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017 was enacted by the Parliament of Australia to amend the Excise Tariff Act 1921, primarily addressing the need to harmonise the tobacco duty rate with other excise duties. This Act was designed to ensure that the tobacco duty rate is indexed in a consistent manner, aligning it with the broader excise duty framework and facilitating a more equitable taxation system. The policy objective was to streamline the duty calculation process and enhance the administration of tobacco duties, thereby contributing to the overall fiscal policy of the Commonwealth. The Act came into effect on 31 August 2017, as specified in the commencement provisions. The legislative changes introduced by this Act involve amendments to the Excise Tariff Act 1921, including the repeal and substitution of certain sections and the introduction of new provisions to define the method for calculating the tobacco duty rate. Notably, the Act mandates the Chief Executive Officer to publish notices in the Gazette regarding changes in the tobacco duty rate, ensuring transparency and informing stakeholders of the updated rates. The application of these amendments is contingent on the goods being entered for home consumption after the specified replacement days, starting from 1 September 2017.

Scope and Application

The Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017 is a Commonwealth Act that amends the Excise Tariff Act 1921 to introduce changes to the tobacco duty rate and its application across Australia. The Act applies to goods that are entered for home consumption on or after the first replacement day, which is 1 September 2017, or any later date if a rate of duty is replaced on that day. The Act applies to all manufacturers, importers, and retailers of tobacco products in Australia, and the changes to the duty rate affect the excise payable on these goods. The amendments are intended to harmonise the tobacco duty rate across the country and ensure that the duty rate is updated in line with inflation. The Act does not specify any exclusions or exemptions, and the changes apply to all tobacco products regardless of their form or packaging. The application of the Act is extended through subordinate instruments, which provide further details on the calculation and rounding of the duty rate. Overall, the Act seeks to streamline the tobacco duty regime and ensure that it remains fair and effective in meeting its policy objectives.

Key Provisions

The Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017 amends the Excise Tariff Act 1921 by introducing new provisions that establish a new tobacco duty rate and a formula for its calculation. Specifically, Section 6AA is repealed and substituted with new content to index the tobacco duty rate (Section 1). Additionally, a new section, 6AAB, is inserted to establish a new tobacco duty rate under subitem 5.5 of the Schedule, which includes a formula for calculating the applicable rate based on the tobacco content of goods (Section 4). The application of these amendments is governed by the provisions outlined in Section 5. The Act imposes several obligations on the parties it governs. Firstly, it mandates that the Chief Executive Officer (CEO) must publish a notice in the Gazette once the rate of duty set out in subitem 5.1 of the Schedule is replaced under section 6AA (Section 6AAB(9)). The notice must include the rate of duty under subitem 5.5 of the Schedule and the goods to which this subitem applies. The Act also requires adherence to the specified rounding rules and replacement days outlined in Section 6AAB(2) and (3), ensuring that the duty rates are applied correctly. Breach of the obligations imposed by the Excise Tariff Amendment (Tobacco Duty Harmonisation) Act 2017 could result in civil or criminal penalties. While the Act itself does not explicitly state the penalties for non-compliance, it operates within the broader framework of the Excise Tariff Act 1921, where penalties for non-compliance with excise duty obligations are severe. Typically, such breaches could result in fines, imprisonment, or both, depending on the nature and severity of the breach. The specific penalties would be determined by the courts based on the circumstances of each case and the relevant provisions of the Excise Tariff Act 1921.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.