Tobacco means tobacco leaf that has been subjected to any process other than curing the leaf as stripped from the plant.
Cigarettes, cigars and loose tobacco are excisable goods if they're produced or manufactured in Australia. If you:
- manufacture excisable tobacco you need a licence from the ATO, even if the tobacco is intended for personal use
- deliver excisable tobacco into the Australian domestic market (home consumption) you must lodge an excise return and pay excise duty.
Tobacco seed, plant and leaf are not excisable goods, but you need a licence to produce or deal in them even if they are intended for personal use, and you need ATO permission to move them.
Licences to grow tobacco are subject to strict rules and conditions and are rarely granted. Currently there is no tobacco manufacture occurring in Australia and no-one is licensed to grow tobacco for commercial sale or personal use.
Imported tobacco products are called 'excise equivalent goods' (EEGs). They're subject to an equivalent customs duty instead of excise duty.
Excisable goods and EEGs are 'underbond' if excise duty or customs duty has not yet been paid. If you:
- store underbond goods you need a licence from the ATO
- move or export underbond goods you need permission from the ATO.
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Excise duty is a tax on tobacco products (excisable goods) produced or manufactured in Australia. If you manufacture or store excisable goods you must hold an appropriate excise licence, and report to us and pay duty on goods delivered into the Australian domestic market.