Notice of Substituted Rates of Excise Duty Notice No. 1 (2025)

Overview

The Excise Tariff Act 1921 was enacted to provide a framework for the imposition of excise duties on certain goods, specifically targeting goods such as alcohol, tobacco, and petroleum products. The primary purpose of this legislation was to address the need for a structured system to levy excise duties, ensuring a consistent and predictable taxation regime on specific consumables and goods. This Act was introduced by the Australian Parliament with the policy objective of generating revenue for the government while also acting as a regulatory measure to potentially discourage the consumption of certain products through higher taxation. This notice, issued under the authority of the Excise Tariff Act 1921, updates the rates of excise duty applicable to various items of alcohol, effective from 3 February 2025, reflecting adjustments to the fiscal and regulatory environment.

Scope and Application

The Excise Tariff Act 1921 applies to all goods subject to excise duty within Australia, specifically focusing on goods classified under the Schedule of the Act, including various alcohol products. This Act affects a wide range of industries, such as beverage manufacturing and retail, by imposing specific excise duties on certain goods based on their alcohol content. The excise duties outlined in the recent notice issued by Naomi Schell, the delegate of the Commissioner of Taxation, are applicable to manufacturers, importers, and retailers of alcohol products, ensuring compliance with the new substituted rates of excise duty effective from 3 February 2025. The jurisdictional reach of the Excise Tariff Act 1921 is national, applying across all states and territories in Australia. However, the Act may also extend or restrict its application through subordinate instruments, which can introduce further specific regulations or exemptions relevant to particular goods or industries.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) outlines the rates of excise duty applicable to various types of goods, as detailed in its Schedule. Section 6A(9) provides the authority for the delegate of the Commissioner of Taxation to issue notices substituting the rates of excise duty ((6A)(9)). In this case, Notice No. 1 (2025) specifies the new excise duty rates for certain items of alcohol, effective from 3 February 2025. For example, under this notice, excise duty for goods classified under item 1.1 is set at $52.87 per litre of alcohol above 1.15% volume ((Schedule, Column 1 and 2)). The obligations under the Excise Tariff Act 1921 for parties involved include adherence to the specified excise duty rates as stipulated in the Act and its notices. Producers, importers, and other entities dealing with the listed goods must ensure compliance with the new rates from the effective date, 3 February 2025. They are required to calculate and remit the appropriate duty on the goods they manufacture, import, or otherwise deal with, as per the updated rates detailed in the notice ((6A)(9)). Breach of the Excise Tariff Act 1921 can lead to both civil and criminal consequences. Under section 188, the Act provides for penalties for non-compliance, including fines and imprisonment. The maximum penalties for evading excise duty can reach up to 10 years imprisonment and substantial fines, reflecting the seriousness with which the Act treats non-compliance. The Act also provides for the recovery of unpaid duty, interest, and additional costs incurred by the Commissioner of Taxation ((188)). Therefore, it is crucial for all parties governed by the Act to ensure they meet their obligations to avoid these severe repercussions.