Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026

Sue Lines

The question now is that the bill be read a second time.

Question agreed to.

Bill read a second time.

I will now deal with the Committee of the Whole amendment circulated by the opposition. The question is that the amendments on sheet 4142 be agreed to.

(1) Title, page 1 (lines 1 and 2), omit "_Customs Act 1901_and the_Proceeds of Crimes Act 2002_", substitute "law relating to tobacco and the proceeds of crime".

(2) Clause 2, page 2 (table item 4), omit "Schedule 6", substitute "Schedules 6 and 7".

(3) Page 50 (after line 17), at the end of the Bill, add:

Schedule 7 — Reduction of tobacco customs and excise duties

Customs Tariff Act 1995

1 After section 19ACA

Insert:

19ACD Reduction of tobacco duty rates

(1) Despite anything else in this Act, each tobacco duty rate is taken, on the day (the commencement day) on which this section commences, to be replaced with a rate that is 20% of the tobacco duty rate on the day before the commencement day.

Treatment of indexation

(2) To avoid doubt:

(a) in working out, for the purposes of subsection (1), a particular tobacco duty rate on the day before the commencement day, take into account any replacement of that rate that occurs before the commencement day under section 19AB; and

(b) for the purposes of applying section 19AB in relation to the first indexation day that occurs after the commencement day, subsection (1) of this section applies when working out the tobacco duty rate on the day before that indexation day.

(3) If the commencement day would, apart from this subsection, be an indexation day under section 19AB then, for the purposes of applying section 19AB, the commencement day is not to be treated as an indexation day.

Effect on other rates for tobacco

(4) To avoid doubt, subsection (1) of this section applies for the purposes of determining an applicable rate under section 19ACA.

Which goods?

(5) This section applies in relation to goods that are entered for home consumption on or after the commencement day.

Definitions

(6) In this section:

commencement day has the meaning given by subsection (1).

tobacco duty rate means a rate of duty that is a tobacco duty rate for the purposes of section 19AB (see section 19AC).

Excise Tariff Act 1921

2 After section 6AAC

Insert:

6AAD Reduction of duties of excise on tobacco

(1) Despite anything else in this Act, the rate of duty applicable under subitem 5.1 of the Schedule is taken, on the day (the commencement day) on which this section commences, to be replaced with a rate that is 20% of the rate of duty applicable under that item on the day before the commencement day.

Treatment of indexation

(2) To avoid doubt:

(a) in working out, for the purposes of subsection (1), the rate of duty applicable under subitem 5.1 of the Schedule on the day before the commencement day, take into account any replacement of that rate that occurs before the commencement day under section 6AA of this Act; and

(b) for the purposes of applying section 6AA of this Act in relation the first indexation day that occurs after the commencement day, subsection (1) of this section applies when working out the tobacco duty rate (within the meaning of section 6AA) on the day before that indexation day.

(3) If the commencement day would, apart from this subsection, be an indexation day under section 6AA then, for the purposes of applying section 6AA in relation subitem 5.1 of the Schedule, the commencement day is not to be treated as an indexation day.

Effect on other rates for tobacco

(4) To avoid doubt, subsection (1) of this section applies when determining the rate of duty applicable under subitem 5.1 of the Schedule for the purposes of applying sections 6AAB and 6AAC.

Which goods?

(5) This section applies in relation to goods that are entered for home consumption on or after the commencement day.

(6) In this section:

commencement day has the meaning given by subsection (1).