Notice of Substituted Rates of Excise Duty - Notice No. 1 (2018)

Overview

The Excise Tariff Act 1921 was enacted to provide a framework for the imposition of excise duties on certain goods within Australia, including alcohol. This legislation was introduced to address the need for a systematic approach to collecting excise duties, which are a form of indirect tax imposed on the manufacture and distribution of specific goods. The Excise Tariff Act 1921 empowers the delegate of the Commissioner of Taxation to adjust and substitute rates of excise duty as needed, as evidenced by the Notice of Substituted Rates of Excise Duty issued under the authority of the Act. This notice outlines the revised rates effective from 5 February 2018, demonstrating the ongoing policy objective to maintain a fair and updated taxation structure on excisable goods.

Scope and Application

The Excise Tariff Act 1921 sets out the rates of excise duty on various goods within Australia. This particular notice, issued by the delegate of the Commissioner of Taxation, pertains to the substituted rates of excise duty for goods classified under specific items of the Excise Tariff Schedule. These rates are applicable to alcohol products and other goods as detailed in the notice, effective from 5 February 2018. The notice specifies the excise duty per litre of alcohol calculated based on the alcohol content exceeding 1.15 per cent by volume for various items. Additionally, the notice includes rates for other goods such as tobacco products and other specified items, which are calculated in various ways including per litre or per kilogram. The excise duty rates are determined under sections 6G and 6H of the Excise Tariff Act 1921, with certain items having their duty rates calculated through section 6J. This notice applies across Australia, impacting entities and individuals involved in the manufacture, importation, or supply of the specified goods within the Commonwealth.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) sets out the rates of excise duty that apply to various goods. The notice issued under subsection 6A(8) of the Tariff Act provides substituted rates of excise duty for certain goods. These rates are effective from 5 February 2018. The notice specifies the excise tariff item in Column 1 and the corresponding substituted rate of duty in Column 2. The rate is calculated per litre of alcohol, based on the alcohol content that exceeds 1.15 percentage by volume. For example, for excise tariff item 1.1, the rate is $42.50 per litre of alcohol for goods with an alcohol content exceeding 1.15 percentage by volume. The notice imposes obligations on the parties and entities it governs. Manufacturers, importers, and others involved in the production or importation of goods subject to excise duty must ensure that they comply with the new rates as specified in the notice. This includes correctly calculating the excise duty based on the new rates for the relevant goods. The notice serves as an update to the existing rates and requires compliance with these updated rates from the specified effective date. The Excise Tariff Act 1921 also includes provisions for offences, penalties, and civil or criminal consequences for non-compliance. While the specific penalties are not detailed in the notice, the general penalties for breaches of excise duty obligations under the Tariff Act can include fines and imprisonment. The maximum penalties can vary depending on the nature and severity of the breach, with potential fines for individuals and corporations as well as imprisonment terms for serious or repeated offences. It is important for entities to understand and comply with the excise duty obligations to avoid these potential penalties.