Notice of Substituted Rates of Excise Duty Notice No. 1 (2023)

Overview

The Excise Tariff Act 1921, enacted by the Parliament of Australia, serves to impose excise duties on various goods, particularly those involving alcohol content. The 2023 Gazetted Notice No. 1 amends the rates of excise duty for goods classified in the Schedule to the Excise Tariff Act, reflecting changes effective from 1 February 2023. This update addresses the need for regular adjustments to excise duties to maintain fiscal policy objectives and to account for inflation and other economic factors. The notice provides new substituted rates for different excise tariff items, calculated on the alcohol content exceeding certain percentages by volume, thereby ensuring that the taxation regime remains effective and aligned with current economic conditions.

Scope and Application

The Excise Tariff Act 1921, as notified by Tony Poulakis, a delegate of the Commissioner of Taxation, pertains to the imposition of excise duties on various goods, specifically those listed in the Schedule of the Act. This Act applies to persons and entities engaged in the production, importation, or supply of excisable goods within Australia, including but not limited to alcohol and other specified substances. The rates of excise duty outlined in the Act are applied to the alcohol content of goods where the percentage by volume of alcohol exceeds certain thresholds. The Act has a national jurisdictional reach, applying across all states and territories of Australia. The notice of substituted rates of excise duty is effective from 1 February 2023 and includes specific rates for different excise tariff items, ranging from free to specific dollar amounts per litre or kilogram, depending on the nature and quantity of the goods. The Act does not specify exclusions or exemptions but allows for adjustments to rates through subordinate instruments, enabling the government to modify rates as necessary.

Key Provisions

The Excise Tariff Act 1921 provides for the imposition of excise duties on specified goods. Under subsection 6A(9) of the Act, the delegate of the Commissioner of Taxation can substitute the rate of excise duty applicable to certain goods as outlined in the Schedule to the Tariff Act. The Notice of Substituted Rates of Excise Duty Notice No. 1 (2023) specifies the new excise duty rates for goods classified under various items of the Schedule, effective from 1 February 2023. For example, excise duty for goods classified under item 1.1 is set at $49.63 per litre of alcohol calculated on the alcohol content exceeding 1.15% by volume. The Excise Tariff Act 1921 imposes obligations on parties who manufacture, produce, or import goods subject to excise duty. These parties must ensure that they calculate and pay the correct amount of duty as per the substituted rates specified in the Notice. This includes keeping accurate records of the alcohol content and volume of their goods to determine the applicable rate of duty. Failure to comply with these obligations may result in legal consequences, including penalties for non-payment or underpayment of duty. The Excise Tariff Act 1921 also includes provisions for offences and penalties for breaches of the Act. Section 15 of the Act outlines various offences, including the failure to declare goods, provide false information, or evade duty. The maximum penalties for these offences vary depending on the severity of the breach, with potential fines and imprisonment for serious or repeat offences. In addition to criminal penalties, the Act also provides for civil consequences, such as the recovery of unpaid duty and interest, as well as the imposition of additional penalties for non-compliance. In summary, the Excise Tariff Act 1921 provides for the imposition of excise duty on certain goods, with the delegate of the Commissioner of Taxation able to substitute the rate of duty as necessary. Parties subject to the Act must ensure that they comply with their obligations, including accurate calculation and payment of duty, and keep appropriate records. Breaches of the Act may result in criminal or civil consequences, including fines, imprisonment, and the recovery of unpaid duty and interest.