The Gillard Government today announced the Review of the Legal and Administrative Framework for Excise Equivalent Goods, to be delivered through a Better Regulation Ministerial Partnership between the Minister for Finance and Deregulation, the Assistant Treasurer and the Minister for Home Affairs.
The Government has commissioned the review to consider further improvements to the efficiency and effectiveness of the excise equivalent goods framework, including opportunities for streamlining arrangements and reducing costs to business. The review will not address the rate, scope or incidence of excise or customs duty.
Excise duty is a tax on locally manufactured petroleum, tobacco and alcohol (excluding wine) products. The equivalent goods imported into Australia are known as Excise Equivalent Goods and are subject to customs duty.
Under a previous Better Regulation Ministerial Partnership, responsibility for the majority of functions relating to warehoused Excise Equivalent Goods was transferred from the Australian Customs and Border Protection Service to the Australian Taxation Office (ATO) on 1 July 2010.
The initial consolidation of the administration of excise and excise equivalent goods within the ATO has already reduced compliance costs for industry and delivered administrative efficiencies for government, Minister for Finance and Deregulation, Senator Penny Wong, said.
This means that the vast majority of businesses that previously dealt with both agencies for their licences and permits now have a single entry point for customs and excise obligations.
Industry has been supportive of these changes, although it has indicated that administrative costs may be further reduced through legislative reform. The Government has responded to industry concerns by commissioning the Partnership to conduct the review.
The Partnership will consider and make recommendations on options including:

• transferring excise equivalent goods into the excise regime;
• reviewing the point at which excise duty is imposed in imported excise equivalent goods;
• consolidating the collection and administration of excise and excise equivalent goods within the ATO;
• reviewing the control of duty free stores, providores and catering bonds, whilst maintaining border integrity and the efficiency and effectiveness of current border controls;
• examining whether the administration of excise goods and excise equivalent goods should be consolidated under the one administrator; and
• revising the import declaration requirements for excise equivalent goods intended to be used in excise manufacture.

This Review will assist us to find new ways to be more efficient and effective in this area, and reduce costs to business, Assistant Treasurer, David Bradbury said.
Minister for Home Affairs, Jason Clare, invited stakeholders to provide input into the process.
A public discussion paper is available on The Treasury website inviting submissions on areas of concern and potential reforms to the excise equivalent goods system, Minister Clare said.
The discussion paper can be found at www.treasury.gov.au. Submissions close 31 August 2012.