Anne Ruston (SA, Liberal Party, Assistant Minister for International Development and the Pacific) Share this | Hansard source

I too rise to speak on the Customs Amendment (Collecting Tobacco Duties at the Border) Bill 2018 and thank the member opposite for her contribution on this important matter. The Australian government is absolutely committed to combating the black market in illicit tobacco. In fact, in October 2017 the Black Economy Taskforce delivered its final report to government. The 2018-19 'Black economy package—combatting illicit tobacco' budget measure gives effect to the report's recommendations, including establishing a new framework to protect tobacco duty, a permit system to import tobacco and the Australian Border Force led Illicit Tobacco Taskforce.

Together, these measures will disrupt illicit tobacco supply chains and deny criminal groups access to illicit profits that fund their other criminal and black economy activities. To give effect to the new framework to protect tobacco duty, the government is introducing the Customs Amendment (Collecting Tobacco Duties at the Border) Bill. Current legislation allows duties on tobacco to be paid at the point when tobacco products leave licensed warehouses, as well as when they are imported. Leakage from these warehouses to the black market contributes to around a quarter of illicit tobacco in Australia.

From 1 July 2019, tobacco importers will be required to pay all duties on tobacco upon importation. From that date, the option to put imported tobacco into a licensed warehouse and delay the payment of duties will no longer be available. This will deny criminal groups the opportunity to defraud the Commonwealth of revenue that secures essential services for all Australians and prevent criminals from undermining government strategies to improve public health outcomes, and it will protect law-abiding local business operators. The bill will also include transitional arrangements for the treatment of tobacco that is in warehouses currently as at 1 July 2019. By tackling black economy activities in the tobacco warehouse environment, the government will protect Australian revenue, protect the health of Australians, reduce criminal activity and provide an estimated $3.3 billion in revenue to the Commonwealth. I thank members for their contribution to this very important debate and commend the bill to the Senate.

Question agreed to.

Bill read a second time.