Notice of Substituted Rates of Excise Duty - Notice No. 4 (2019)

Overview

The Excise Tariff Act 1921 was enacted to provide a framework for the imposition of excise duties on certain goods within Australia, particularly focusing on tobacco products. This legislation, amended by the Excise Tariff Amendment (Tobacco) Act 2016, addresses the need to regulate and control the taxation of tobacco goods to discourage consumption and generate revenue for the government. The Excise Tariff Act 1921 is administered by the Parliament of Australia and serves to ensure that excise duties are levied at appropriate rates to achieve the policy objective of reducing tobacco use through increased taxation. The recent notice, issued under the authority of the Excise Tariff Act 1921, adjusts the rates of excise duty on tobacco products to reflect changes in economic conditions and public health strategies, ensuring the continued effectiveness of tobacco taxation as a deterrent.

Scope and Application

The Excise Tariff Act 1921 applies to the imposition and collection of excise duties on certain goods within Australia. The Act provides the framework for the classification of goods subject to excise and the rates of duty applicable to those classifications. In this instance, the notice issued under the Act specifically adjusts the rates of excise duty for goods related to tobacco, effective from 1 September 2019. The notice, issued by a delegate of the Commissioner of Taxation, adjusts the excise duty rates for tobacco products, as classified in the Schedule to the Tariff Act, to new substituted rates set out in the accompanying table. This adjustment applies to the entire Commonwealth of Australia, and the notice directly modifies the rates for specific excise tariff items, including tobacco products, by specifying the new duty rates per unit of measure. The notice does not introduce new classifications or alter the scope of the Act but rather updates the rates for existing classifications, ensuring that the excise duty remains aligned with policy objectives and fiscal requirements.

Key Provisions

The Excise Tariff Act 1921, specifically in Notice No. 4 (2019), delineates the revised rates of excise duty applicable to certain goods as of 1 September 2019. The notice, issued by Tony Poulakis, a delegate of the Commissioner of Taxation, specifies new excise rates for items classified under the Schedule of the Tariff Act. For instance, item 5.1 now carries an excise duty of $0.93653 per stick, while item 5.5 has an updated rate of $1,291.77 per kilogram of tobacco content. These rates replace the previously applicable rates, reflecting legislative amendments such as those introduced by the Excise Tariff Amendment (Tobacco) Act 2016. Entities and individuals subject to the Excise Tariff Act 1921 are mandated to comply with these new excise duty rates when calculating and paying the applicable duties on goods manufactured or imported from the effective date. This obligation extends to accurately reporting the updated rates in any documentation related to the goods in question. It is essential for duty-payers to ensure that their financial and logistical planning reflects these new rates to avoid any discrepancies or non-compliance issues. The Act imposes specific obligations on the parties it governs, which include maintaining accurate records of excise duty calculations and payments. These records must be preserved for a stipulated period as required by the Excise Tariff Act 1921. Additionally, duty-payers must adhere to the notice’s provisions by applying the new excise rates to the specified goods from the effective date. Any failure to comply with these obligations may result in penalties or legal consequences. Non-compliance with the Excise Tariff Act 1921, particularly the new rates specified in Notice No. 4 (2019), can lead to severe consequences. The Act stipulates penalties for breaches, which can include fines and, in some cases, imprisonment. The exact penalties depend on the severity and intent of the breach. For instance, wilful or negligent breaches might attract higher penalties compared to those resulting from mere oversight. The maximum penalties are defined within the Act, reflecting the seriousness with which the government treats non-compliance with excise duty regulations.