House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

General outline and financial impact

Excise and Other Legislation Amendment (Compliance Measures) Bill 2004

This bill amends the Excise Act 1901 to strengthen compliance provisions for revenue protection and improve administration arrangements. The amendments:

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enable the Commissioner of Taxation (Collector) to control the delivery of excisable goods for exportation by permissions and, if not satisfied the goods have been exported or otherwise accounted for, to require payment of the excise duty equivalent (Schedule 1, items 4 to 9);

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include tobacco seed and plant in provisions relating to permission for movement of tobacco leaf and unlawful movement; and provide penalties where tobacco seed, plant and leaf delivered for exportation is not moved in accordance with a permission (Schedule 2, items 1 to 4 and 6 to 9);

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enable immediate disposal of certain seized forfeited goods and use of evidentiary certificates relating to those goods in prosecutions and certain other proceedings (Schedule 3, items 1 to 4);

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enable licence and certain other information about a person to be disclosed to a second person to ensure that the second person is able to satisfy legislative requirements (Schedule 4, items 1 to 3); and

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repeal a Customs Act 1901 provision relating to exportation of excisable goods (Schedule 1, either item 1 or items 2 and 3).

Date of effect: Schedule 1, item 1 (if it commences) and items 4 to 9, will commence on Proclamation or on the first day after the end of six months from the date this bill receives Royal Assent. Schedule 1, items 2 and 3, will commence on the later of concurrent commencement with item 4 or immediately after the commencement of item 62 in Part 3 of Schedule 3 to the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. Schedules 2 to 4 will commence the day after this bill receives Royal Assent.

Proposal announced: Not previously announced.

Financial impact: As the measures are for compliance and administration improvement the extent of revenue protection cannot be quantified.

Compliance cost impact: Minor costs may be incurred by exporters to obtain permission for delivery of excisable goods and tobacco seed, plant and leaf for exportation.