Explanatory Memorandum
(Circulated by authority of the Acting Minister for Revenue and Financial Services, Senator the Hon Mathias Cormann and the Assistant Minister for Immigration and Border Protection, the Hon Alex Hawke MP)General outline and financial impact
Tobacco duty harmonisation
The Excise Tariff Amendment (Tobacco Duty Harmonisation) Bill 2017 and Customs Tariff Amendment (Tobacco Duty Harmonisation) Bill 2017 amend the Excise Tariff Act 1921 and Customs Tariff Act 1995 to harmonise the rates of excise and excise-equivalent customs duty applying to different tobacco products. The Bills ensure that tobacco products in cigarette form and those containing other tobacco, such as roll your own tobacco, receive comparable duty treatment. This is done by four annual adjustments of the duty rate, from 1 September 2017.
Date of effect: The first adjustment applies from 1 September 2017.
Proposal announced: The measure was announced on 9 May 2017 in the 2017-18 Budget.
Financial impact: This measure is estimated to result in a gain in excise and excise-equivalent receipts over the forward estimates period of $360 million. Goods and services tax receipts are estimated to increase by $35 million over the same period.
Excise and excise-equivalent receipts
| Receipts | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| Department of Immigration and Border Protection | $30m | $70m | $110m | $150m |
Goods and services tax receipts
| Receipts | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| Australian Taxation Office | $5m | $10m | $10m | $10m |
Human rights implications: These Bills are compatible with human rights. See Statement of Compatibility with Human Rights paragraphs 1.23 to 1.34.
Compliance cost impact: The rate adjustments from this measure coincide with the date that indexation and previously legislated rate changes apply. Accordingly, there are no significant additional compliance costs imposed by this measure.
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