Notice of Substituted Rates of Excise Duty - Notice No. 4 (2015)

Overview

The Excise Tariff Act 1921 was enacted to provide a framework for the imposition of excise duty on various goods, including tobacco products, as a means of regulating consumption and generating revenue. This Act was introduced to address the need for a structured and consistent approach to the taxation of goods that are often subject to heavy consumption and have significant public health implications. The Excise Tariff Act 1921 was enacted by the Parliament of Australia, reflecting the Commonwealth's role in managing national fiscal policy and addressing public health concerns through taxation. The policy objective of the Act, as amended, is to ensure that excise duties are applied fairly and effectively across different categories of goods, thereby contributing to both fiscal revenue and the discouragement of harmful consumption patterns, particularly in relation to tobacco products.

Scope and Application

The Excise Tariff Act 1921, as amended by the Excise Tariff Amendment (Tobacco) Act 2014, applies to the imposition of excise duty on specific goods, with the notice issued under subsection 6AA of the Act providing details of substituted rates of excise duty for tobacco products. The notice applies to all goods classified to the specified items of the Schedule to the Tariff Act, with the substituted rates of duty applicable to each item listed in the table. These rates are effective from 1 September 2015, impacting the cost of tobacco products, which are taxed based on the quantity or content of tobacco. The application of the Act is national in scope, as it is a Commonwealth Act, thereby affecting entities and individuals involved in the manufacture, importation, or supply of tobacco products across Australia. The notice does not specify any exclusions, exemptions, or thresholds beyond what is outlined in the Tariff Act and its amendments, and any further extension or restriction of application would be governed by subordinate instruments or additional legislative measures.

Key Provisions

The Excise Tariff Act 1921, through its Notice No. 4 (2015), mandates the substitution of excise duty rates for specific goods, effective from 1 September 2015 (sections 6AA). This notice, issued by Thomas Wheeler as the delegate of the Commissioner of Taxation, adjusts the excise duty rates for items listed in the Schedule to the Tariff Act, specifically for items 5.1 and 5.5. For item 5.1, the excise duty is set at $0.53096 per stick, while for item 5.5, the duty is $663.72 per kilogram of tobacco content. This legislative update is crucial for manufacturers, importers, and retailers who must adjust their pricing and accounting practices to comply with the new rates. Entities governed by the Excise Tariff Act 1921 are required to adhere to the new excise duty rates specified in the notice. Manufacturers and importers of tobacco products must update their records and systems to reflect the new rates, ensuring that they apply the correct duty when calculating the excise payable on their goods. Retailers, in turn, must ensure that the prices they charge include the appropriate excise duty as per the new rates. Failure to comply with these requirements can lead to discrepancies in tax reporting and potential penalties. Breaching the obligations set out in the Excise Tariff Act 1921 can result in both civil and criminal consequences. For civil penalties, the Act may impose fines on entities that fail to comply with the new excise duty rates. The maximum penalty for non-compliance can be significant, depending on the severity and frequency of the breach. Additionally, criminal penalties may apply for more serious or deliberate breaches, potentially leading to prosecution. The specific maximum penalties are not detailed in this notice but are outlined in other sections of the Excise Tariff Act 1921 and related legislation. It is essential for all parties to carefully review and implement the new rates to avoid these potential repercussions.