Notice of Substituted Rates of Excise Duty - Notice No. 2 (2014)

Overview

The Excise Tariff Act 1921 was enacted to establish a framework for imposing excise duties on various goods within Australia. This Act was introduced to address the need for a structured and systematic approach to collecting excise duties, ensuring a stable revenue source for the government while also regulating the consumption of certain goods through taxation. The Excise Tariff Act 1921 was enacted by the Commonwealth Parliament, and its policy objective is to provide a legislative basis for the imposition of excise duties as a means of generating revenue and influencing consumer behaviour. The Act allows for the periodic review and adjustment of duty rates, as demonstrated by the recent notice of substituted rates of excise duty for certain goods, effective from 1 March 2014. This legislative instrument ensures that the rates of excise duty remain aligned with contemporary economic conditions and policy goals.

Scope and Application

The Excise Tariff Act 1921 applies to the imposition of excise duty on certain goods as specified in the Act's schedule, with the particular notice substituting rates of duty for specific goods. This legislation operates within the Commonwealth jurisdiction, impacting entities and individuals engaged in the manufacture, production, or importation of goods that are subject to excise duty. The notice specifically affects goods classified under the Excise Tariff Act, altering the rate of duty for each specified item as listed in the accompanying table. The substituted rates of excise duty apply to goods such as tobacco products, with the new rates taking effect from 1 March 2014. The notice, issued by Brett Martin, the delegate of the Commissioner of Taxation, updates the excise rates as proposed under the Excise Tariff Proposal (No. 1) 2013 and is effective immediately upon gazette, ensuring compliance with the updated tariff schedule. This change does not extend to goods not listed in the notice or to any other goods outside the scope of the Excise Tariff Act.

Key Provisions

The Excise Tariff Act 1921 (Tariff Act) provides a framework for the imposition of excise duties on specific goods in Australia. In Notice No. 2 (2014) issued under subsection 6AA of the Tariff Act, Brett Martin, as the delegate of the Commissioner of Taxation, announces the new rates of excise duty effective from 1 March 2014. Specifically, section 5.1 of the Schedule to the Tariff Act now imposes an excise duty of $0.40639 per stick on tobacco products, while section 5.5 imposes a duty of $508.01 per kilogram of tobacco content. The obligations imposed by the Tariff Act on parties and entities include compliance with the newly specified excise rates. Manufacturers, importers, and other entities involved in the production or distribution of goods subject to excise duty must adjust their pricing and accounting systems to reflect these updated rates. They are required to ensure that the correct amount of excise duty is calculated and paid to the Commissioner of Taxation. Failure to comply with the provisions of the Tariff Act may result in various penalties and consequences. Offences under the Excise Tariff Act 1921 can lead to both civil and criminal penalties. For example, individuals or entities that fail to declare or pay the correct amount of excise duty may face civil penalties, including fines. The maximum penalty for certain offences can be significant, potentially reaching thousands of dollars depending on the severity and frequency of the breach. Criminal penalties may also apply, with potential imprisonment for those found guilty of serious or repeated offences. These consequences underscore the importance of adhering to the specified excise rates and ensuring compliance with the Act.