Notice of Substituted Rates of Excise Duty Notice No. 4 (2024)

Overview

The Excise Tariff Act 1921 was enacted to establish and regulate the excise duties on various goods in Australia. This legislation enables the imposition of excise duties on specific products, providing a source of revenue for the Commonwealth. The Excise Tariff Act was introduced to address the need for a structured and consistent system for taxing excisable goods, ensuring that duties are applied fairly and transparently across different product categories. The Act is administered by the Commissioner of Taxation, who has the authority to set and substitute rates of excise duty through delegated instruments such as the present notice. This notice, issued under the authority of the Excise Tariff Act, informs the public of the updated excise duty rates effective from 1 September 2024, reflecting the policy objective of maintaining a current and effective taxation regime on excisable goods.

Scope and Application

The Excise Tariff Act 1921 applies to a range of goods that are subject to excise duty in Australia. Specifically, it pertains to goods listed in the Schedule of the Act, which includes items such as tobacco products and certain alcoholic beverages. The Act applies to all persons and entities engaged in the manufacture, importation, or supply of these goods within Australia, including the Commonwealth, states, and territories. The geographic reach of the Act is therefore national, applying uniformly across all jurisdictions within Australia. The notice issued under the Act specifies the substituted rates of excise duty for certain goods, effective from 1 September 2024. Notably, the notice does not specify exclusions, exemptions, or thresholds; rather, it details the exact rates for each specified excise tariff item. The application and enforcement of the Act may be further refined through subordinate instruments, which can provide additional details or clarifications on the application of the substituted rates of duty.

Key Provisions

The Excise Tariff Act 1921 provides mechanisms for adjusting the rates of excise duty levied on certain goods. Section 6AA(11) and 6AAB(9) specifically empower a delegate of the Commissioner of Taxation to substitute the rates of excise duty applicable to goods listed in the Schedule to the Act. Notice No. 4 (2024) issued under these sections informs the public of the new excise duty rates effective from 1 September 2024. The notice specifies new rates for particular excise tariff items, such as setting the rate for goods classified under item 5.1 at $1.36623 per stick, and for item 5.5 at $2101.89 per kilogram of tobacco content. For item 5.8, the duty is determined by the amount worked out under section 6AAC. These adjustments reflect the updated financial and policy considerations pertinent to the taxation of these goods. The Excise Tariff Act 1921 imposes several obligations on entities affected by the changes in excise duty rates. Manufacturers, importers, and other entities liable for excise duty must ensure they comply with the new rates as specified in the notice. This includes accurately calculating the duty owed on goods classified under the updated tariff items and ensuring that all relevant documentation and returns are correctly completed and submitted to the Australian Taxation Office. Failure to adhere to these new rates can result in significant compliance issues, including potential audits and inquiries from tax authorities. Breaches of the Excise Tariff Act 1921 can lead to various penalties and legal consequences. The Act outlines specific offences related to non-compliance with the excise duty requirements, such as under-declaration or non-payment of duty. Section 178 of the Act stipulates that any person found guilty of an offence can be subject to criminal penalties, including fines and imprisonment. The maximum penalties for serious or repeated offences can be substantial, reflecting the seriousness of evading or deliberately misreporting excise duty. Additionally, civil consequences may include the imposition of penalties for late or incorrect lodgment of duty, further emphasising the importance of compliance with the Act’s provisions.