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Collecting tobacco duties and taxes at the border

The Government is making changes to the taxing point for tobacco as part of a package of measures which will crack down on illicit tobacco. As part of the 2018-19 Budget, the Government announced it would tax tobacco at the border and at the equivalent point of manufacture.

From 1 July 2019, importers will be required to pay all duty and tax liabilities when tobacco enters the country, rather than when it leaves a licensed warehouse and enters the domestic market. This will reduce the potential for leakage from warehouses to the black market.

Although there is currently no licensed commercial tobacco production in Australia, the taxing point for any potential future domestic manufacture of tobacco will also be changed to be consistent with the new taxing point for tobacco imports.

The Government has released exposure draft legislation and explanatory material for amendments to give effect to the Budget announcement. The draft legislation available on this page concerns the proposed changes to the Excise Act 1901, which would apply to any tobacco manufactured in Australia.

Public consultation on the exposure draft legislation and explanatory material will run for two weeks, closing on Wednesday 22 August 2018. The purpose of public consultation is to seek stakeholder views on the exposure draft legislation and explanatory material.

The Department of Home Affairs has separately released the exposure draft on the proposed changes to the Customs Act 1901, which will apply to imports of tobacco. Consultation on these changes is available on the Home Affairs website.

Responding

You can submit responses to this consultation up until 22 August 2018.

Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

How to respond

Post

Address written submissions to:

The Treasury
Langton Crescent
PARKES ACT 2600