Notice of Substituted Rates of Excise Duty - Notice No. 2 (2017)

Overview

The Excise Tariff Act 1921, enacted by the Commonwealth Parliament, is a piece of legislation that establishes the rates of excise duty applicable to various goods. This Act was introduced to address the need for a structured and systematic approach to imposing excise duties on certain goods, thereby ensuring a consistent and regulated tax framework. The Excise Tariff Amendment (Tobacco) Act 2014 further refined the application of excise duties, particularly concerning tobacco products. The policy objective of these legislative measures is to regulate and control the consumption of certain goods, particularly tobacco, through the imposition of specific excise duties, thereby influencing economic and public health outcomes. This notice, issued under the authority of the Excise Tariff Act 1921, updates the rates of excise duty applicable to tobacco products from 1 March 2017, reflecting the ongoing legislative intent to manage and adjust these duties in response to economic and public health considerations.

Scope and Application

The Excise Tariff Act 1921, as amended by the Excise Tariff Amendment (Tobacco) Act 2014, applies to the imposition of excise duties on various goods, with a specific focus on tobacco products as evidenced by the Notice of Substituted Rates of Excise Duty. The Act pertains to the levy of excise duty on goods classified under specific items of the Schedule to the Tariff Act, such as tobacco products, which in this instance include items 5.1 and 5.5. The duty rates are applicable to the Commonwealth of Australia and affect all entities and persons engaged in the production, importation, or sale of tobacco products within the country. The rates specified in the notice, effective from 1 March 2017, outline the exact duty charges per unit of tobacco product, thereby directly impacting the pricing and taxation of these goods across Australia. This legislative framework ensures a uniform approach to the taxation of tobacco products, contributing to revenue generation while potentially influencing consumer behaviour and public health outcomes.

Key Provisions

The Excise Tariff Act 1921, specifically in this case, Notice No. 2 (2017), sets out the substituted rates of excise duty applicable to certain goods, effective from 1 March 2017. Section 6AA of the Act empowers the delegate of the Commissioner of Taxation to make such notifications. The notice specifies that the excise duty rate for goods classified under certain items in the Schedule to the Tariff Act will change, with the new rates detailed in the accompanying table. For example, excise duty on goods classified under item 5.1 will now be $0.61726 per stick, and for goods classified under item 5.5, the duty will be $771.60 per kilogram of tobacco content. The obligations imposed by this legislation on parties and entities governed by it are primarily related to compliance with the new excise duty rates. Manufacturers, importers, and other relevant parties must ensure they are charging and reporting the correct amount of excise duty on the specified goods. This requires an understanding of the new rates and proper adjustments to pricing and reporting mechanisms to reflect these changes. The Tariff Act mandates that these entities adhere to the rates outlined in the notice, and failure to do so may result in non-compliance issues. Breaching the requirements of the Excise Tariff Act 1921 can lead to serious consequences. Section 185 of the Act stipulates that any person who fails to comply with the provisions, including those related to the payment of excise duty, is subject to penalties. For example, section 186 outlines that an individual can be fined up to 5,000 penalty units, while a body corporate may face a fine of up to 25,000 penalty units. In addition to financial penalties, there may be other civil or criminal consequences depending on the severity and intent of the breach. These provisions underscore the importance of adhering to the stipulated excise duty rates and the potential repercussions of non-compliance.