Stephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill amends the Customs Tariff Act 1995 to raise the customs duty on excise-equivalent tobacco goods by five per cent each year for three years and to align the customs duty rate for tobacco goods subject to the 'per kilogram' rate with the customs duty rate applying to the average per stick tobacco content of cigarettes, progressively over four years. These amendments support the Excise Tariff Amendment (Tobacco) Bill 2024.

As with the Excise Tariff Amendment (Tobacco) Bill 2024, the annual five per cent increase in the tax on tobacco will commence from 1 September 2023 and continue for three years until 1 September 2025. The customs duty rate alignment for tobacco goods subject to the 'per kilogram' duty rate with the 'per stick' duty rate which applies to cigarettes and other similar tobacco products takes effect from 1 September 2023. These changes will progressively decrease the applied weight conversion factor each year for four years until 1 September 2026, ensuring all tobacco products will generally have equivalent tax treatment regardless of their form.

The implementation of these two measures will not affect the ordinary biannual indexation of customs duty. These indexations will continue as per the ordinary schedule, in March and September of each year, during and after the implementation of these two measures.

The measures in this bill were previously moved as the Customs Tariff Proposal (No. 2) 2023 on 7 August 2023. Consistent with normal parliamentary practice, the customs tariff proposal now requires incorporation in the Customs Tariff Act.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.