Excise and Customs Legislation Amendment (Streamlining Administration) Bill 2024 - Commentary on Ministerial Responses [2024] AUSStaCSBSD 157 (14 August 2024)

• Excise and Customs Legislation Amendment (Streamlining Administration) Bill 2024148
• Significant penalties149
• Assistant Minister for Competition, Charities and Treasury’s response151
• Committee comment

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Excise and Customs Legislation Amendment (Streamlining Administration) Bill 2024^[148]

Purpose	This bill seeks to amend the Excise Act 1901 to streamline licence application and renewal requirements for excise licences to store or manufacture excisable goods. Additionally, the bill seeks to amend the Customs Act 1901 to streamline licence application and renewal requirements for customs warehouse licences that authorise the warehousing of excise-equivalent goods. The bill also establishes a public register of entities that hold such licences.
Portfolio	Treasury
Introduced	House of Representatives on 16 May 2024
Bill status	Received the Royal Assent on 28 June 2024

Significant penalties^[149]

2.73 Item 121 of Schedule 1 to the bill inserts proposed subsection 39K(1A) into the Excise Act 1901 (the Excise Act). Proposed subsection 39K(1A) provides that during a period in which a license is suspended under subsection 39G(1A), the license holder must not, without permission and at premises in relation to which the license is suspended:

• for a manufacturer license—intentionally manufacture goods that are excisable goods knowing, or being reckless as to whether, they are excisable goods (proposed paragraph 39K(1A)(a)); or

• for a manufacturer license or a storage license—intentionally keep or store excisable goods knowing, or being reckless as to whether, they are excisable goods (proposed paragraph 39K(1A)(b)).

2.74 A penalty of up to two years imprisonment applies to contravention of this offence.

2.75 Item 139 would insert proposed subsection 39M(2) into the Excise Act. Proposed subsection 39M(2) provides that if a license is varied to no longer cover particular premises, a person must not, without permission, intentionally remove from the premises any excisable goods on which duty has not been paid, knowing, or being reckless as to whether the goods are excisable goods on which duty has not been paid.

2.76 A penalty of up to two years imprisonment applies in contravention of this offence.

2.77 In Scrutiny Digest 7 of 2024, the committee requested the Treasurer’s advice as to:

• the appropriateness of the penalties of two years imprisonment for proposed subsections 39K(1A) and 39M(2); and

• whether these penalties are broadly equivalent to similar offences in Commonwealth legislation and if not, why not. ^[150]

2.78 The committee noted that consideration of the appropriateness of these provisions would be assisted if the Treasurer’s response explicitly addresses relevant principles as set out in the Attorney-General’s Department’s Guide to Framing Commonwealth Offences, Infringement Notices and Enforcement Powers.

Assistant Minister for Competition, Charities and Treasury’s response^[151]

2.79 The assistant minister advised that the offences in sections 39K and 39M of the Act are comparable to existing offence provisions in the Excise Act, and that the penalties are necessary to protect revenue for goods on which a duty has not been paid.

2.80 The assistant minister explained that the new penalties cover suspensions of excise licences for specific premises, as opposed to the existing penalties as the previous law provided licences for a single premise. It is noted that the existing penalties cited by the assistant minister are also subject to a penalty of up to two years imprisonment. Further, the assistant minister explained that the penalties are consistent with offences in similar Commonwealth legislation designed to protect excise or customs duty revenue, and that they are also consistent with the Attorney-General’s Department’s Guide to Framing Commonwealth Offences, Infringement Notices and Enforcement Powers.

Committee comment

2.81 The committee thanks the assistant minister for this advice. The committee welcomes the further detail provided on the formulation of the penalties in proposed subsection 39K(1A) and 39M(2) and that these are consistent with similar offences already in existence. The committee notes that its assessment of whether penalties are consistent with similar Commonwealth legislative scheme is assisted if examples are provided. The committee considers that this information would have been useful if included in the explanatory memorandum to the bill.

2.82 In light of the fact that the bill has received the Royal Assent the committee makes no further comment in relation to this matter.

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^[148] This entry can be cited as: Senate Standing Committee for the Scrutiny of Bills, Excise and Customs Legislation Amendment (Streamlining Administration) Bill 2024, Scrutiny Digest 9 of 2024; [2024] AUSStaCSBSD 157.

^[149] Schedule 1, item 121, proposed subsection 39K(1A), and item 139, proposed subsection 39M(2). The committee draws senators’ attention to these provisions pursuant to Senate standing order 24(1)(a)(i).

^[150] Senate Standing Committee for the Scrutiny of Bills, Scrutiny Digest 7 of 2024 (26 June 2024) pp. 33–35.

^[151] The minister responded to the committee’s comments in a letter on 11 July 2024. A copy of the letter is available on the committee’s webpage (see correspondence relating to Scrutiny Digest 9 of 2024).