Notice of Substituted Rates of Excise Duty - Notice No. 1 (2019)

Overview

The Excise Tariff Act 1921 was enacted by the Parliament of Australia to provide for the imposition of excise duties on certain goods, including alcohol, tobacco, and fuel, among others. The Act allows for the regulation of excise duties by setting specific rates for different categories of goods, thereby addressing the need for a structured approach to taxation on specific consumables and goods. This notice, issued under the authority of the Excise Tariff Act 1921, adjusts the substituted rates of excise duty for various alcohol-related goods, effective from 4 February 2019. The changes in excise duty rates are intended to align with current fiscal policies and economic considerations, aiming to influence consumer behaviour and generate revenue for the government.

Scope and Application

The Excise Tariff Act 1921 applies to goods subject to excise duty as specified within the Act, and the notice of substituted rates of excise duty extends to various items classified under the Act's schedule. The application is broad, covering numerous goods including different alcohol content levels, with the rates specified in the notice applying to these goods as per their classification in the Excise Tariff Act. The notice sets out the revised excise duty rates for these goods effective from 4 February 2019, impacting industries and entities involved in the production, importation, or supply of these goods. The geographic reach of the Act is national, applying across Australia, and the rates are calculated per unit of measurement such as per litre of alcohol or per kilogram. The notice does not specify any exclusions, exemptions, or thresholds within its scope, but it relies on the broader provisions of the Excise Tariff Act for detailed application and exceptions. The Act allows for further specification and modification of the rates and classifications through subordinate instruments, ensuring flexibility in tax policy adjustments.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) includes specific provisions for the imposition of excise duty on various goods. Notice No. 1 (2019) informs that, as of 4 February 2019, the substituted rate of excise duty for goods classified to each item of the Schedule to the Tariff Act is updated as outlined in the table. The duty is calculated based on the alcohol content exceeding a certain percentage by volume (1.15), with specific rates per litre or per kilogram, as applicable (sections 1.1 to 10.30). These sections detail the specific excise rates applicable to different categories of goods. Under the Excise Tariff Act, the parties or entities governed by the Act, such as manufacturers, importers, and wholesalers of excisable goods, must ensure that they comply with the specified rates of excise duty as outlined in the notice. This includes correctly calculating and paying the applicable duty on goods that fall within the specified tariff items. Failure to adhere to these rates can lead to non-compliance with the Act. Breaches of the Excise Tariff Act, including failure to pay the correct amount of excise duty, can result in both civil and criminal consequences. Civil penalties may include fines, while criminal penalties could involve imprisonment, depending on the severity and intent behind the breach. The maximum penalties for such offences are not explicitly stated in the notice but are generally prescribed under the Excise Act 1901, which often includes fines and imprisonment terms commensurate with the offence. It is crucial for entities subject to the Excise Tariff Act to ensure strict compliance to avoid these potential penalties.