Notice Of Substituted Rates of Excise Duty - Notice No. 2 (2015)

Overview

The Excise Tariff Act 1921 was enacted to establish the rates of excise duty applicable to various goods, primarily tobacco products, in Australia. This Act was introduced to address the need for a systematic and structured approach to the imposition of excise duties on specific goods, thereby ensuring a consistent framework for tax collection on these items. The Act is administered by the Parliament of Australia, which enacts the necessary provisions to regulate the imposition of excise duties, including the ability to adjust these rates as needed to reflect changes in economic conditions or policy objectives. The Excise Tariff Proposal (No. 1) 2013, which led to the substituted rates of duty, was designed to align the excise duties more closely with current market values and consumption patterns, thereby enhancing the efficiency and effectiveness of the tax system.

Scope and Application

The Excise Tariff Act 1921 applies to various goods in Australia, imposing excise duties as specified within its schedule. This legislation governs the rates of excise duty applicable to particular goods, with the duty calculated based on the specified criteria such as the quantity or value of the goods. In this instance, the Excise Tariff Act 1921, through a notice issued by a delegate of the Commissioner of Taxation, substitutes the rates of excise duty for specific goods as listed in the Schedule. The notice specifies the new excise rates for certain excise tariff items, such as tobacco products, effective from 3 March 2015. The act applies to all entities and individuals involved in the manufacture, importation, or supply of goods subject to excise duty in Australia, thereby impacting various industries including but not limited to tobacco and alcohol. This legislative action extends the application of the Excise Tariff Act 1921 by modifying the rates of duty as outlined, without excluding any specific entities or transactions from its purview. The notice does not explicitly mention any exemptions or thresholds, but it is understood that the substituted rates apply universally to the specified goods within the Australian jurisdiction.

Key Provisions

The Excise Tariff Act 1921, through Notice No. 2 (2015), introduces changes to the rates of excise duty on certain goods. Section 6AA of the Act allows the delegate of the Commissioner of Taxation to substitute the rates of excise duty, and in this notice, Thomas Wheeler, acting in that capacity, has set new rates effective from 3 March 2015. Specifically, for tobacco products, the rate for item 5.1 is now $0.47008 per stick, and for item 5.5, the rate is $587.62 per kilogram of tobacco content. These changes are detailed in the table provided in the notice. Entities and individuals subject to the Excise Tariff Act 1921 must adhere to the new rates specified in Notice No. 2 (2015). For example, manufacturers, importers, and retailers of tobacco products must adjust their pricing and record-keeping practices to reflect the new excise duty rates. Compliance with these new rates is crucial, as the Act requires precise adherence to the specified rates to avoid potential legal repercussions. Failure to comply with the new excise duty rates set out in the notice may result in various consequences. Under the Excise Tariff Act 1921, non-compliance could lead to the imposition of penalties. The specific penalties are not detailed in this notice but generally include fines and potential criminal charges for more severe breaches. The maximum penalties for breaches of excise duties can be significant, often involving substantial fines and, in severe cases, imprisonment. It is essential for parties affected by these changes to ensure they are fully compliant with the new rates to avoid these adverse outcomes.