Notice of Substituted Rates of Excise Duty Notice No. 3 (2024)

Overview

The Excise Tariff Act 1921 was enacted by the Parliament of Australia to provide a framework for the imposition of excise duties on certain goods, specifically those classified within the schedule of the Act. This Act was introduced to address the need for a structured and legally enforceable system for collecting excise duties on specific goods, thereby ensuring a steady revenue stream for the government while also influencing consumption patterns through taxation. The Act allows for the periodic adjustment of these duties to reflect economic conditions and policy objectives, such as reducing harmful consumption of certain products. In this instance, Tony Poulakis, as the delegate of the Commissioner of Taxation, has issued a notice under subsection 6A(9) of the Excise Tariff Act 1921 to substitute the rates of excise duty applicable from 5 August 2024. This amendment aims to align the excise duty rates with current fiscal policy objectives, which may include revenue generation and public health initiatives.

Scope and Application

The Excise Tariff Act 1921 applies to all excisable goods produced, manufactured, or imported in Australia. This Act imposes excise duties on a range of goods, including alcoholic beverages, with the duty calculated based on the alcohol content and volume of the goods. The Notice of Substituted Rates of Excise Duty issued on 31 July 2024 modifies the excise rates for various items effective from 5 August 2024. These rates are set out in a detailed table within the notice, which specifies the substituted rate of duty for each item, reflecting changes in tax policy. The notice applies across the Commonwealth of Australia and is administered by the Commissioner of Taxation, with Tony Poulakis acting as the delegate. The Act itself does not explicitly state exclusions or exemptions, but specific provisions within the broader Excise Act framework might provide for exclusions or exemptions in certain cases. The scope of application may be further defined or extended through subordinate instruments issued under the authority of the Excise Tariff Act.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) sets out the rates of excise duty on various goods, and Notice No. 3 (2024) provides for the substitution of these rates, effective from 5 August 2024. This notice (subsection 6A(9)) specifically details the new rates for goods classified under the Schedule of the Tariff Act, which are listed in the accompanying table. Column 1 of the table lists the excise tariff items, while Column 2 specifies the new substituted rate of duty for each corresponding item. The substituted rates detailed in the notice impose obligations on the parties involved in the manufacture, importation, or sale of the goods subject to excise duty. Manufacturers, importers, and retailers must ensure that the appropriate excise duty is charged and paid on goods that fall under the specified tariff items. This includes accurately calculating the duty based on the alcohol content and percentage by volume, as outlined in the notice. The obligation extends to keeping accurate records of these calculations and the associated duty payments. Failure to comply with the new excise duty rates and obligations as stipulated in the notice may result in legal consequences. The Excise Tariff Act 1921 includes provisions for penalties and enforcement measures in the event of non-compliance. The specific penalties for breaches of the Act can include fines and, in some cases, imprisonment. The maximum penalties are set out in the Act and depend on the nature and severity of the breach. It is important for all parties to be aware of these obligations and to ensure compliance to avoid any potential penalties.