Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank all senators who have contributed to this debate. The Excise Tariff Amendment (Tobacco) Bill 2016 is an important bill that increases the rate of excise duty on tobacco by way of four annual increases of 12.5 per cent a year. The first of these changes will occur on 1 September 2017. There is also a related bill, the Customs Tariff Amendment (Tobacco) Bill 2016, which will make the equivalent increase to customs duty on tobacco by way of four equivalent annual increases. Overall, this will raise more than $5 billion, which of course will help to get the budget back into balance in the expected trajectory as outlined in the budget. But, of course, this is also a very important public health measure because, as the evidence clearly indicates, increased taxes on tobacco are a very effective way to reduce consumption. On that basis, I commend these bills to the Senate.

Question agreed to.

Bills read a second time.