Regulation Impact Statement – Department of the Treasury
On 18 March 2014, the Government implemented measures to change the rates of tobacco excise. The proposals increased the rates of excise on tobacco and tobacco products through a series of four staged increases of 12.5 per cent, commencing on 1 December 2013 with subsequent increases on 1 September each year until the last of the staged increases on 1 September 2016. The proposal also changed the basis of indexation of excise duty on tobacco and tobacco products from the consumer price index (CPI) to average weekly ordinary time earnings (AWOTE). The Office of Best Practice Regulation (OBPR) has assessed that the process followed by the Department of the Treasury and the level of analysis contained in the Regulation Impact Statement is consistent with best practice. The average annual regulatory cost is estimated to be $2,000. The regulatory cost and the offset identified have been agreed with the OBPR.