House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Revenue and Financial Services, Minister for Women and Minister Assisting the Prime Minister for the Public Service, the Hon Kelly O'Dwyer MP)

General outline and financial impact

Illicit tobacco offences

The amendments made by the Bill:

•

create a new tobacco offence regime that provides a comprehensive set of offences that can be applied to illicit tobacco that:

-

has been domestically manufactured or produced; or

-

for which the origin of production or manufacturing is unknown or uncertain;

•

create new offences for possession of equipment for producing or manufacturing illicit tobacco;

•

set penalties at a level to deter illegal activity;

•

confirm that illicit tobacco for which the origin of production or manufacturing is unknown or uncertain can be seized and forfeited; and

•

define tobacco to align the meaning for excise and excise-equivalent customs duty purposes so that the amount of duty on dutiable products is determined in a consistent manner.

Date of effect: The amendments generally commence on the day after Royal Assent. The amendments concerning offences apply to conduct involving possession, sale, purchase, manufacture or production of tobacco, occurring on or after that day.

Proposal announced: This measure was announced by the Treasurer in the 2016-17 Budget on 3 May 2016 as part of the former Department of Immigration and Border Protection 'Tobacco Excise - measures to improve health outcomes and combat illicit tobacco' package.

Financial impact: The impact is an unquantifiable gain to revenue over the forward estimates period.

* Unquantifiable

Human rights implications: This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - paragraphs 1.249 to 1.267.

Compliance cost impact: Nil. There is no compliance cost impact from these amendments.