Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP, and the Assistant Minister for Immigration and Border Protection, Senator the Hon Michaelia Cash)Statement of compatibility with human rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Indexation changes and staged increases to tobacco excise and excise equivalent customs duty
Excise Tariff Amendment (Tobacco) Bill 2014
Customs Tariff Amendment (Tobacco) Bill 2014
1.40 These Bills are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .
Overview
1.41 The Excise Bill and Customs Bill increase rates of excise and excise equivalent customs duty on tobacco through a series of four staged increases of 12.5 per cent each, commencing on 1 December 2013.
1.42 These Bills also provide for rates of excise and excise equivalent customs duty on tobacco to be indexed according to AWOTE instead of the CPI. The last CPI indexation occurred on 1 August 2013 and the first AWOTE indexation occurs on 1 March 2014.
Human rights implications
1.43 These Bills engage the right to health.
Right to health
1.44 These Bills engage the right to health in Article 12 of the International Covenant on Economic Social and Cultural Rights. The right to health includes, in Article 12(1)(c), the right to the prevention, treatment and control of diseases.
1.45 These Bills promote the right to health by contributing to efforts to reduce smoking rates and thereby reducing the significant health and economic effects of tobacco usage.
Conclusion
1.46 These Bills are compatible with human rights as they promote the right to health.