Notice of Substituted Rates of Excise Duty Notice No. 4 (2022)

Overview

The Excise Tariff Act 1921 was enacted to provide for the imposition of excise duties on certain goods, and to specify the rates at which such duties are charged. The Act addresses the need for a consistent and legally defined system for imposing excise on goods, which was critical for the uniform application of taxation across the Commonwealth. Enacted by the Parliament of Australia, the policy objective of this Act is to ensure that the Commonwealth receives revenue from excise duties on goods such as tobacco and alcohol, contributing to the national fiscal policy and public expenditure. The Act also provides a framework for the Commissioner of Taxation to adjust the rates of excise duty as necessary, ensuring the system remains fair and reflective of current economic conditions. This legislative instrument, through its enabling provisions, allows for the timely and effective administration of excise duties by updating the rates as required, ensuring compliance and revenue collection are efficiently managed.

Scope and Application

The Excise Tariff Act 1921, through Notice No. 4 (2022), provides for the substitution of rates of excise duty for specific goods listed in the Schedule of the Act, effective from 1 September 2022. This notice applies to entities and individuals involved in the manufacture, production, importation, or supply of goods that fall under the excise tariff items outlined in the Schedule. The notice specifies new excise duty rates for certain items, such as an excise duty of $1.14040 per stick for goods classified under item 5.1, and $1,629.14 per kilogram of tobacco content for goods classified under item 5.5. This legislative action extends to the Commonwealth jurisdiction and affects industries and entities that deal with the specified goods. The notice does not specify any exclusions, exemptions, or thresholds, but it does mention that the substituted rates are determined under section 6AAC. The application and enforcement of this Act may be further extended or restricted through subordinate instruments as deemed necessary by the delegate of the Commissioner of Taxation.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) has undergone a revision in excise duty rates effective from 1 September 2022, as announced in Notice No. 4 (2022). This notice, issued by Tony Poulakis as a delegate of the Commissioner of Taxation, references subsections 6AA(11) and 6AAB(9) of the Tariff Act (sections 6AA(11) and 6AAB(9)). The notice provides updated excise duty rates for certain items listed in the Schedule to the Tariff Act. Specifically, the new excise duty rates are detailed in a table where Column 1 lists the excise tariff items, and Column 2 provides the corresponding substituted rates of duty. For example, the excise duty for goods classified under item 5.1 is set at $1.14040 per stick, while for item 5.5, the duty is $1,629.14 per kilogram of tobacco content. For item 5.8, the duty is calculated according to the formula specified under section 6AAC. Under the Excise Tariff Act, the updated excise duties are binding on all entities and individuals who manufacture, produce, or import the goods listed in the Schedule. These parties must adhere to the new rates when calculating and paying the excise duty. The Act requires them to ensure that the appropriate excise duty is applied to the goods as per the specified rates. Compliance with these rates is crucial to avoid any legal repercussions and to maintain adherence to the regulatory framework. Failure to comply with the updated excise duty rates set out in the Excise Tariff Act may result in various consequences. The Act outlines potential civil and criminal penalties for non-compliance. Civil penalties may include fines or monetary penalties as specified by the Act. Criminal penalties may be imposed in cases of deliberate or fraudulent non-compliance, which could lead to prosecution and imprisonment. The exact penalties are determined by the severity of the breach and the intent behind it, with maximum penalties clearly stated within the Act to ensure clarity and enforceability.