Notice of Substituted Rates of Excise Duty - Notice No. 1 (2013)

Overview

The Excise Tariff Act 1921 was enacted by the Australian Parliament to establish and regulate the rates of excise duty applicable to certain goods, particularly those involving alcohol and tobacco products. The Act was introduced to address the need for a structured and systematic approach to collecting excise duties, ensuring a consistent revenue stream for the government while also regulating the production and consumption of certain goods. This notice, issued under the authority of the Act, informs of changes to the excise duty rates effective from 1 February 2013. The delegate of the Commissioner of Taxation, Robert Olding, provided this update in accordance with the provisions of the Tariff Act, specifying new excise duty rates for various alcohol and tobacco products, thereby aligning with the policy objective of maintaining fiscal control and regulating the consumption of taxable goods.

Scope and Application

The Excise Tariff Act 1921 applies to goods subject to excise duty in Australia, specifically focusing on the taxation of alcohol and tobacco products. This Act sets out the rates of excise duty that are applicable to various categories of excisable goods. The notice issued under this Act by Robert Olding, as the delegate of the Commissioner of Taxation, provides updated substituted rates of excise duty effective from 1 February 2013. The notice specifies new rates for alcohol products, categorised by their alcohol content, and also includes rates for tobacco products based on tobacco content. The new rates apply to all persons and entities involved in the manufacture, importation, or supply of these goods within Australia, thereby affecting industries such as brewing, distilling, and tobacco production. The notice does not explicitly state exclusions or exemptions, but the specified rates are calculated based on the percentage by volume of alcohol exceeding certain thresholds, implying that products below these thresholds might be exempt or subject to different rates not mentioned in this notice. The Act extends its application through subordinate instruments, which may further define specific details or additional categories of goods subject to excise duty.

Key Provisions

The Excise Tariff Act 1921, through Notice No. 1 (2013), outlines the substituted rates of excise duty applicable to various goods starting from 1 February 2013. This notice, issued by Robert Olding, a delegate of the Commissioner of Taxation, specifies new duty rates for goods classified under the Excise Tariff Schedule, as listed in Column 1 of the accompanying table, with the corresponding new rates detailed in Column 2. For instance, excise duty for goods classified under item 1.1 is set at $38.70 per litre of alcohol, calculated on the alcohol content exceeding 1.15% by volume. Similarly, other items such as 1.2, 1.5, and so forth, have their specific excise rates detailed in the table. The Excise Tariff Act 1921 imposes obligations on entities and individuals involved in the manufacture, importation, or sale of goods subject to excise duty. These entities must adhere to the new rates specified in the notice and ensure that the appropriate excise duty is applied to the goods they handle. The obligation extends to accurately calculating the duty based on the specified formulae, which involve the alcohol content and volume percentage of the goods. Additionally, entities must maintain proper records and documentation to demonstrate compliance with the new excise rates. Breach of the Excise Tariff Act 1921 can lead to both civil and criminal consequences. Under section 156 of the Act, any person who contravenes the provisions regarding excise duty may be liable to a penalty. The maximum penalties for offences involving excise duty can be severe, including substantial fines and, in some cases, imprisonment. The specific penalties depend on the nature and severity of the offence, but the Act provides for significant deterrents to ensure compliance. It is crucial for entities and individuals to understand and adhere to the new rates to avoid facing these potential consequences.