Notice of Substituted Rates of Excise Duty - Notice No. 3 (2019)

Overview

The Excise Tariff Act 1921 was enacted to regulate the imposition of excise duties on specific goods, primarily focusing on alcohol and tobacco products. The Act was introduced to address the need for a structured and consistent framework for the collection of excise duties on certain consumables, thereby generating revenue for the Commonwealth while also serving as a regulatory measure to control the consumption of certain products. The Act is administered by the Parliament of Australia, with the aim of ensuring that the excise duties reflect the current economic conditions and policy objectives. The Act's primary policy objective is to provide a fair and effective means of taxation on goods that are deemed to have a negative impact on public health and society, thereby discouraging their consumption.

Scope and Application

The Excise Tariff Act 1921 applies to goods classified under the Schedule to the Tariff Act, particularly those containing alcohol, and governs the excise duty rates for such goods. This Act applies to all entities and individuals involved in the production, importation, or sale of excisable goods within the Commonwealth of Australia. The geographic reach of the Act is national, encompassing all states and territories of Australia. The notice issued under subsection 6A(9) of the Tariff Act specifies the substituted rates of excise duty for various excise tariff items, which are determined based on the alcohol content of the goods. The notice applies to goods listed in the Schedule of the Excise Tariff Act and does not explicitly mention any exclusions, exemptions, or thresholds. However, the application of the Act and its subordinate instruments may be further defined in other sections and schedules of the Excise Tariff Act.

Key Provisions

The Excise Tariff Act 1921, as amended, sets out the excise duties that apply to various goods in Australia. The Act allows for the imposition of excise duties on a range of goods, with specific rates detailed in the Schedule to the Act. The Excise Tariff Act 1921 Notice No. 3 (2019) provides for substituted rates of excise duty for goods classified under specific tariff items. For example, from 5 August 2019, the excise duty on alcohol exceeding 1.15% by volume is set at $43.53 per litre (item 1.1), $8.71 per litre (item 1.2), and so forth, as detailed in the accompanying table. Each tariff item specifies the rate of duty applicable based on the alcohol content exceeding the threshold percentage. The Excise Tariff Act 1921 imposes obligations on manufacturers, importers, and other entities involved in the production or distribution of excisable goods. These entities must ensure they are aware of and comply with the specified excise duties for the goods they handle. This involves accurately calculating the excise duty based on the relevant rate for each item and subitem in the Schedule, as well as ensuring that the appropriate duty is paid to the Commissioner of Taxation. Failure to comply with these obligations can result in significant financial and legal consequences. The Act also outlines various offences and penalties for non-compliance with the excise duties prescribed. Offences under the Excise Tariff Act 1921 include the failure to declare, account for, or pay excise duty, as well as the provision of false or misleading information. The penalties for such offences can be severe. For example, individuals and entities may be subject to fines up to $21,000 for serious or repeated breaches. Additionally, criminal penalties may apply, potentially resulting in imprisonment for offences such as defrauding the Commissioner of Taxation. These penalties serve as a deterrent to non-compliance and ensure that the revenue generated from excise duties is accurately collected.