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Legislation & regulationRegulation of tobacco tax
Tobacco is currently taxed by the Commonwealth Government, through:
- federal excise duty
- customs duty
- goods and services tax.
No additional State taxes or licence fees apply in Victoria.
Federal excise duty
Excise duty is imposed under the Excise Act 1901 (Cth) on tobacco products manufactured in Australia, at a per stick rate, which is subject to six-monthly CPI (Consumer Price Index) adjustments. The current rate of excise duty is set out in the Schedule to the Excise Tariff Act 1921 (Cth).
Customs duty
Customs duty is imposed on tobacco products imported into Australia, under the Customs Tariff Act 1995 (Cth). The current rate of customs duty, which applies per stick, and is the same as the rate of excise duty imposed on tobacco products manufactured in Austraia, is set out in Section IV of Schedule 3 to the Customs Tariff Act 1995 (Cth).
Goods and services tax
Goods and services tax also applies to cigarette sales, in accordance with the A New Tax System (Goods and Services Tax) Act 1999 (Cth) .
