Spry Roughley Insights

2024-25 Federal Budget: Excise and Customs Duty

Written by Spry Roughley | May 15, 2024 12:15:43 AM
Removal of nuisance tariffs

Tariffs identified as a nuisance across a range of imported goods will be removed from 1 July 2024.
The measure will permanently set to “free” the rate of duty in sch 3 and sch 4A–15 of the Customs Tariff Act 1995 on 457 tariff lines. These tariffs had been identified as a nuisance to Australian businesses, imposing unnecessary administrative costs and compliance burdens. Tariffs that will be removed relate to a range of imported goods, including household necessities such as toothbrushes, tools, fridges, dishwashers and clothing.

A consultation paper for this measure was released on 11 March 2024.

Source: Budget Paper No 2, p 7.

Streamlining of excise administration measures start date delayed

The start dates for certain components of a measure to streamline excise administration for fuel and alcohol announced in the Coalition government’s 2022–23 Budget will be deferred.

Components of the measure that relate to streamlining licence application and renewal requirements will commence the later of 1 July 2024 or the day following assent. The requirement for the ATO to publish on its website a public register of excise licences and excise equivalent warehouse licences will apply from 30 days following commencement of enabling legislation. In addition, the removal of regulatory barriers applying to bunker fuels for commercial shipping industries will apply from 1 January 2025, instead of 1 July 2024.

The changes were first announced in the Coalition government’s 2022–23 Budget with a start date of 1 July 2023. The start date for these changes was later deferred to 1 July 2024 in the 2023–24 Budget.

Source: Budget Paper No 2, p 10.