Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

EXCISE TARIFF AMENDMENT (TOBACCO) BILL 2024

Tobacco smoking remains the leading cause of preventable death and disability in Australia. It claims the lives of around 20,500 Australians every year. As part of our National Tobacco Strategy, the government is continuing to take action to reduce the consumption of tobacco products.

This legislation will increase the tax on tobacco by 5 per cent for three years, in addition to ordinary indexation.

We are also aligning the tax treatment of roll your own tobacco with that of stick cigarettes.

These changes a build on Labor's proud commitments to decisively tackle tobacco deaths and illness in Australia. We introduced plain packaging over a decade ago. When those reforms were introduced, smoking rates in Australia were around 16 per cent. The latest data has it at around 11 per cent. The equivalent of around 1 million fewer Australians smoking.

These changes will drive those rates down further.

Because, as the Health Minister has said, a higher priced cigarette is a less attractive cigarette. Increasing tobacco prices is one of the most effective measures to reduce smoking.

Our goal is to reduce smoking rates to below 10 per cent by 2025, and to 5 per cent or less by 2030.

We know however that simply raising prices is not the only solution to the harms caused by tobacco in Australia.

That's why the revenue generated by this legislation will form part of government funds being invested into the healthcare system, helping support the health of current and former smokers and vapers.

Our 2023-24 Budget and MYEFO included $832 million to fund measures to protect Australians from the harm caused by tobacco and vaping products.

Better support for those wanting to quit. Better support for those who have quit to remain healthy. And a better regulatory framework for vaping in Australia.

The measures in the bill were previously moved as Excise Tariff Proposal (No. 1) 2023 on 7 August 2023. Consistent with normal parliamentary practice, the excise tariff proposal now requires incorporation in the Excise Tariff Act.

This Bill is complemented by the Customs Tariff Amendment (Tobacco) Bill 2024.

Full details of the measure are contained in the Explanatory Memorandum.

CUSTOMS TARIFF AMENDMENT (TOBACCO) BILL 2024

This Bill amends the Customs Tariff Act 1995 to raise the customs duty on excise-equivalent tobacco goods by 5 per cent each year for 3 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 4 years. These amendments support the Excise Tariff Amendment (Tobacco) Bill 2024.

As with the Excise Tariff Amendment (Tobacco) Bill 2024, the annual 5 per cent increase in the tax on tobacco will commence from 1 September 2023 and continue for 3 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 4 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.