Anne Ruston (SA, Liberal Party, Assistant Minister for Agriculture and Water Resources) Share 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—

Customs Tariff Amendment (Tobacco) Bill 2016

This Bill will increase the rate of excise equivalent customs 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.

The Government is committed to improving health outcomes for all Australians and in particular to combating the health implications of smoking.

Recent research has shown that up to 1.8 million people, around two thirds of Australia's smokers, will die from smoking related causes if they continue to smoke.

One of the most effective ways to reduce the rate of smoking is a program of education combined with an increase in the price of cigarettes. Increases in tobacco excise over the last two decades have contributed to significant declines in the number of people smoking daily.

This Bill supports the Government's efforts to decrease tobacco consumption and limit the uptake of smoking.

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

Excise Tariff Amendment (Tobacco) Bill 2016

This Bill will increase 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.

This Bill aims to increase the price of cigarettes via taxation, which research has shown is one of the most effective ways of reducing tobacco consumption and preventing the uptake of smoking. Higher prices encourage smokers to quit or reduce their consumption while also discouraging potential smokers, including young Australians, from taking up the habit.

This is an important change as smoking remains a significant health problem in Australia. Recent research has shown that up to 1.8 million people, around two thirds of Australia's smokers, will die from smoking related causes if they continue to smoke.

These excise increases will bolster the Government's broader tobacco strategy, which uses a variety of policy interventions, to minimise the prevalence of smoking.

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