Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will increase the excise equivalent customs duty imposed on roll-your-own tobacco to align it with the rate applied to cigarettes.

Consistent with the cognate Excise Tariff Amendment (Tobacco Duty Harmonisation) Bill 2017, the rate adjustment will correct a disparity in the tax treatment of cigarettes and roll-your-own tobacco.

To correct the disparity, this bill will adjust the per kilogram tobacco duty rate to reflect the new assumption that the average cigarette contains 0.7 grams of tobacco and not 0.8 grams of tobacco as applies under the current rate.

This adjustment, to be made over four years, will make sure the government taxes tobacco more equally, regardless of its form.

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

Debate adjourned.