Notice of Substituted Rates of Excise Duty Notice No. 4 (2023)

Overview

The Excise Tariff Act 1921, enacted by the Parliament of Australia, aims to regulate and enforce excise duties on certain goods. This Act provides the legal framework for the imposition of excise duties on specified goods, with provisions for the substitution of rates as necessary to maintain the effectiveness of the taxation system. The 2023 substituted rates notice issued under this Act, particularly Notice No. 4, serves to update the rates of excise duty for goods classified within the schedule of the Tariff Act, ensuring that the duty rates remain aligned with economic and policy objectives. This notice reflects the ongoing commitment to fiscal responsibility and revenue generation through excise duties, while also considering the need to adjust rates in response to changing economic conditions and policy imperatives.

Scope and Application

The Excise Tariff Act 1921, as amended and notified through Gazette C2023G01030, applies to the imposition of excise duty on specific goods within Australia. This legislation targets particular items of goods, specifically those classified under certain excise tariff items, and outlines the rates of excise duty applicable from 1 September 2023. The Act applies to both individuals and entities involved in the production, importation, or sale of goods subjected to excise duty, thereby impacting industries such as tobacco and alcohol. The geographic reach of the Act is national, applying uniformly across all states and territories within Australia. The notice specifies the substituted rates of duty for different categories of goods, as detailed in the accompanying table, which adjusts the financial burden on the producers and importers of these goods. The Act allows for the modification of duty rates through subordinate instruments, ensuring flexibility in fiscal policy adjustments. No exclusions, exemptions, or specific thresholds are noted in the current notice, meaning the stated rates apply broadly to all relevant goods as specified.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) provides for the imposition of excise duties on certain goods. Notice No. 4 (2023) issued under subsections 6AA(11) and 6AAB(9) of the Tariff Act (sections referenced in parentheses), outlines changes to the rates of excise duty for specific items as of 1 September 2023. The notice specifies new rates for items classified in the Schedule to the Tariff Act. For instance, the rate for item 5.1 is set at $1.24335 per stick, while for item 5.5, the rate is $1842.00 per kilogram of tobacco content. For item 5.8, the duty is calculated in accordance with section 6AAC. The obligations imposed by the Excise Tariff Act 1921 on the parties governed by this legislation include adherence to the specified rates of excise duty as outlined in the notice. Importers, manufacturers, and other relevant parties must ensure that the appropriate duty is charged and paid on the goods classified under the Schedule to the Tariff Act. This includes maintaining accurate records and documentation to substantiate the duty paid, in line with the requirements of the Tariff Act. The Act also includes provisions for offences, penalties, and consequences for breaches. For example, non-compliance with the specified rates of excise duty can result in civil penalties. These may include fines or other financial penalties as stipulated in the relevant sections of the Tariff Act. Additionally, persistent or egregious breaches may lead to criminal charges, with potential penalties including imprisonment, depending on the severity and circumstances of the offence. The exact penalties are detailed in the relevant sections of the Excise Tariff Act 1921 and any associated regulations or guidelines.