Australian Border Force (ABF) have published ACN 2024/29 in relation to the Indexation of customs duty rates on excise-equivalent goods on 5 August 2024.
Section 19 of the Customs Tariff Act 1995 (Customs Tariff Act) provides for customs duty rates for certain excise-equivalent goods to be indexed biannually, in February and August, to the Consumer Price Index (CPI). The new rates are determined by the application of an indexation factor.
This indexation factor is calculated by dividing the most recent June or December Quarter CPI number by the previous highest June or December Quarter CPI number occurring after the June 1983 Quarter.
The December 2023 Quarter CPI figure (136.1) will be used to determine the indexation factor for the duty rate increase applied on 5 August 2024, as it is higher than the previously used June 2023 Quarter CPI figure (refer to ACN 2024/02). On 31 July 2024, the Australian Bureau of Statistics released the June 2024 Quarter CPI figure (138.8).
As the indexation factor for August 2024 (1.020) is greater than one, customs duty rates for certain excise-equivalent goods, in Schedule 3 of the Customs Tariff, will increase by the application of this factor.
Australian Border Force (ABF) will arrange for the publication of a Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods Notice (No. 3) 2024 in the Gazette.
Changes to the Online Tariff available on www.abf.gov.au, to reflect the new rates, will be available on commencement of the rates.
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