Notice of Substituted Rates of Excise Duty - Notice No. 3 (2013)

Overview

The Excise Tariff Act 1921 was enacted to provide a legislative framework for the imposition of excise duties on certain goods within Australia. This Act was introduced to address the need for a structured and regulated approach to the taxation of goods such as alcohol and tobacco, which are subject to excise duties. The Act empowers the Commissioner of Taxation to adjust the rates of excise duty through notices, ensuring that the taxation system remains responsive to economic and social changes. The policy objective behind the Excise Tariff Act 1921 is to provide a consistent and fair method of taxing specific goods, thereby generating revenue for the government while also influencing consumer behaviour through pricing mechanisms. The notice provided updates the rates of excise duty effective from 1 August 2013, as authorised under subsection 6A(8) of the Act, ensuring that the duties remain aligned with current fiscal and regulatory objectives.

Scope and Application

The Excise Tariff Act 1921 applies to the imposition of excise duties on various goods, with the scope of this particular notice extending to the substituted rates of excise duty applicable from 1 August 2013. This notice specifically alters the excise duty rates for goods classified under the Schedule of the Tariff Act, including alcoholic beverages and tobacco products. The substituted rates are applied to the alcohol content of goods where the percentage by volume of alcohol exceeds 1.15, as well as to the tobacco content in tobacco products. The notice is issued under the authority of the delegate of the Commissioner of Taxation and affects all entities involved in the production, importation, and distribution of these goods within Australia. The geographic reach of this legislation is national, applying across the Commonwealth of Australia. Notably, the notice does not specify any exclusions or exemptions, implying that the new rates apply universally to the specified goods unless otherwise provided by the Act or subordinate instruments. Any further modifications or clarifications to the application of these rates may be made through additional instruments or notices issued under the authority of the Excise Tariff Act 1921.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) outlines various excise duties on specific goods, with Section 6A(8) allowing for the adjustment of these rates. Notice No. 3 (2013) informs of the updated excise duty rates effective from 1 August 2013. Each excise tariff item in the Schedule of the Tariff Act has been updated to reflect new rates. For instance, excise duty for alcohol now varies between $2.74 and $76.98 per litre, depending on the alcohol content. Similarly, tobacco products have an updated rate of $446.65 per kilogram of tobacco content. Entities or individuals involved in the manufacture, import, or supply of these goods are required to comply with the updated rates. They must ensure that the appropriate excise duty is calculated and paid on the goods they handle. Failure to do so could result in legal consequences. This includes accurate record-keeping and reporting of the excise duties to the Commissioner of Taxation. Breaching the requirements of the Excise Tariff Act 1921 may result in various penalties. The nature and severity of the penalty depend on the extent and intent of the breach. Civil penalties may include fines, and in more severe cases, criminal penalties could apply. For example, under the Crimes Act 1914, a person could be fined up to 5,250 penalty units or imprisoned for up to five years, or both, for serious breaches. These penalties underscore the importance of compliance with the updated excise duty rates as specified in the Tariff Act.