Notice of Substituted Rates of Excise Duty Notice No. 4 (2025)

Overview

The Excise Tariff Act 1921 was enacted to establish and regulate the rates of excise duty on various goods within Australia. This Act provides the legislative framework through which the Commonwealth can levy excise duties on specific goods, including tobacco products. The Parliament of Australia enacted this legislation to address the need for a structured and systematic approach to taxing certain consumables, thereby contributing to public revenue and potentially discouraging the consumption of harmful products such as tobacco. The policy objective behind the Excise Tariff Act 1921 is to ensure that appropriate excise duties are applied to specified goods, thereby achieving fiscal outcomes while also considering public health and welfare implications. In accordance with the Act, the Commissioner of Taxation, or their delegate, has the authority to notify and adjust the rates of excise duty as required, ensuring the legislation remains responsive to economic and social changes.

Scope and Application

The Excise Tariff Act 1921 applies to all goods specified in its schedule, including tobacco products, which are subject to excise duties as outlined in the legislation. This Act, administered by the Commissioner of Taxation, pertains to the Commonwealth of Australia and affects all entities involved in the manufacture, importation, or sale of excisable goods within Australia. The notice provided under this Act, such as Notice No. 4 (2025), details specific excise duty rates that are effective from a specified date, in this case, 1 September 2025. These rates apply to various items, including tobacco products, and are calculated based on factors such as the weight of tobacco content or specific product units like sticks. While the primary focus of this Act is on the imposition of excise duties, the legislation also includes provisions that allow for adjustments and substitutions of these rates through subsidiary notices, ensuring that the duty rates remain current and reflective of policy changes or economic conditions. The Act does not specify any exclusions or exemptions within this notice, but broader exemptions may exist under other sections of the Excise Tariff Act or related legislation.

Key Provisions

The Excise Tariff Act 1921 (the Tariff Act) outlines the rates of excise duty applicable to various goods. In this context, Notice No. 4 (2025) issued under sections 6AA(11) and 6AAB(9) specifies the substituted rates of excise duty effective from 1 September 2025. According to this notice, the excise duty for different goods is altered as per the details provided in a table. For instance, excise tariff item 5.1 now carries a duty of $1.49832 per stick, while item 5.5 is set at $2397.31 per kilogram of tobacco content. Additionally, item 5.8 has its duty calculated under section 6AAC. The Excise Tariff Act 1921 imposes obligations on various entities to ensure compliance with the specified excise duties. Manufacturers, importers, and retailers of the goods listed in the schedule must adhere to the new rates as stipulated in Notice No. 4 (2025). These parties are required to adjust their pricing and documentation to reflect the updated duty rates, ensuring that they are charging and reporting the correct amount of excise duty to the relevant authorities. Breaches of the Excise Tariff Act 1921 can lead to both civil and criminal consequences. Under the Act, those found to be non-compliant may face substantial penalties. The maximum penalties for evading excise duty can include fines of up to $21,000 for individuals and significantly higher amounts for corporate entities. Additionally, persistent offenders may face imprisonment. It is imperative for all affected parties to ensure that they are fully compliant with the new rates to avoid these serious consequences.