House debates

Monday, 7 August 2023

Tariff Proposals

Customs Tariff Proposal (No. 2) 2023, Excise Tariff Proposal (No. 1) 2023

3:45 pm

Photo of Stephen JonesStephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

I move:

Customs Tariff Proposal (No. 2) 2023

Excise Tariff Proposal (No. 1) 2023

Almost 10 per cent of Australians still smoke tobacco daily. Tobacco is the leading cause of preventable death and disability in Australia, responsible for something in the order of 21,000 deaths in Australia each year. Research has shown us that changes in tobacco tax are effective in improving population health by incentivising smokers to quit. In fact, it's one of our most successful health policies.

The proposals that I've tabled propose amendments to the Excise Tariff Act 1921 and the Customs Tariff Act 1995. The government committed to these measures in our last budget, the 2023-24 budget, to encourage smokers to quit and to help the government achieve the priorities of the National Tobacco Strategy 2023-2030. The Minister for Health and Aged Care is very passionate about these, as is the entire government. The government is doing this through two means. First, the proposals increase the excise and customs duty on tobacco goods by five per cent per year for three years, starting from 1 September this year, in addition to the current biannual indexation. Second, the proposals increase the excise and customs duty on tobacco goods that are subject to the per-kilogram rate, such as loose-leaf tobacco, to broadly align them with the effective duty paid on tobacco goods subject to the per-stick rate. It is effectively an equalisation measure. This increase will be phased in annually over four years from 1 September this year.

Debate adjourned.