Explanatory Memorandum
Circulated By the Authority of the Treasurer, the Hon Wayne Swan MP and the Minister for Home Affairs, the Hon Brendan O'Connor MPGeneral outline and financial impact
Increased tax on tobacco products
These two Bills amend the Excise Tariff Act 1921 and the Customs Tariff Act 1995 to increase the excise and excise-equivalent customs duty rate applying to tobacco, cigars, cigarettes and snuff by 25 per cent, from $0.26220 to $0.32775 per stick not exceeding in weight 0.8 grams per stick actual tobacco content, and from $327.77 to $409.71 per kilogram for other tobacco.
Date of effect: 30 April 2010.
Proposal announced: On 29 April 2010, excise and customs notices were published in the Commonwealth Government Special Notices Gazette No. S63 and No. S62, respectively.
Financial impact: This measure will have these revenue implications:
| Revenue ($m) | 2009-10 | 2010-11 | 2011-12 | 2012-13 | 2013-14 |
| Australian Taxation Office | 205 | 870 | 900 | 920 | 960 |
| Australian Customs and Border Protection Service | 25 | 260 | 270 | 280 | 290 |
| Impact on fiscal balance | 230 | 1,130 | 1,170 | 1,200 | 1,250 |
| Revenue ($m) | 2009-10 | 2010-11 | 2011-12 | 2012-13 | 2013-14 |
| Goods and services tax | 25 | 115 | 115 | 120 | 130 |
Compliance cost impact: Minor transitional compliance and administration costs are expected from this rate change.