Notice of Substituted Rates of Excise Duty Notice No. 4 (2021)

Overview

The Excise Tariff Act 1921 was enacted to provide a framework for the imposition and collection of excise duty on certain goods. The Act aims to address the need for a consistent and structured approach to the taxation of specific goods within Australia. This legislative framework is administered by the Parliament of Australia, ensuring that the excise duties are levied in a manner that is both equitable and effective for revenue purposes. The policy objective of the Excise Tariff Act 1921 is to impose and collect excise duty in a way that supports government revenue while also regulating the consumption of certain goods through taxation. The 2021 notice of substituted rates of excise duty exemplifies the ongoing adjustments made to ensure that the Act remains relevant and effective in meeting its objectives.

Scope and Application

The Excise Tariff Act 1921 applies to the imposition of excise duty on specified goods within Australia, and its scope encompasses the regulation of duties on tobacco products and certain other goods as listed in the Act. The Act applies to individuals, businesses, and entities involved in the manufacture, import, or sale of the goods specified in the Schedule, and it imposes a financial obligation on them to pay the specified excise duty. The excise duty rates are subject to adjustment through notices issued by a delegate of the Commissioner of Taxation, as demonstrated in Notice No. 4 (2021), which provides updated rates effective from 1 September 2021. This Act has a national reach across all states and territories of Australia, ensuring a uniform application of excise duties. The Act itself may be supplemented by subordinate instruments that provide additional detail or extend the application of the Act, but no exclusions, exemptions, or thresholds are mentioned within this specific notice beyond the rates listed in the table.

Key Provisions

The Excise Tariff Act 1921 outlines the specific rates of excise duty for various goods and substances. In Notice No. 4 (2021), issued under sections 6AA(11) and 6AAB(9) of the Act, it is specified that from 1 September 2021, the excise duty rates for certain items are substituted. For example, excise tariff item 5.1 now carries a duty of $1.11905 per stick, while item 5.5 attracts a duty of $1,598.64 per kilogram of tobacco content. Item 5.8 is subject to the duty calculated under section 6AAC. Entities and individuals involved in the production, importation, or supply of goods covered by these tariff items must adhere to the new rates specified in the notice. This includes ensuring that the appropriate amount of excise duty is accounted for and remitted to the Commissioner of Taxation. It is critical for businesses to update their accounting and invoicing systems to reflect these changes to avoid discrepancies and potential legal issues. Failure to comply with the revised excise duty rates can result in significant legal consequences. The Excise Tariff Act 1921 stipulates penalties for non-compliance, which can include fines and, in severe cases, imprisonment. The exact penalties are not specified in the notice but are outlined in other sections of the Act, where penalties for evasion or incorrect declaration of duty can be substantial. Businesses found in breach may also face civil actions for the recovery of unpaid duties and interest. The importance of accurate record-keeping and timely reporting cannot be overstated to mitigate these risks.