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  • Tobacco Stakeholder Group record of meeting, 16 May 2018

    Discussion summary


    The Tobacco Stakeholder Group agendas, minutes and related papers are not binding on the ATO, Treasury, Department of Home Affairs or the other bodies referred to in these papers. While every effort is made to accurately record views expressed, the wording necessarily represents a summary of statements of general position only, and care should be taken in interpreting those statements. These papers reflect the position at the date of release (unless otherwise noted) and readers should note that the position on any issue may subsequently change.

    The Tobacco Stakeholder Group (TSG) met on 16 May 2018. The meeting was attended by representatives from Philip Morris International, Imperial Tobacco Australia, British American Tobacco Australia, the Treasury, the Department of Home Affairs and the Australian Competition and Consumer Commission.

    The following are the key issues discussed at the meeting.

    • Implementation of tobacco-related measures announced in the 2018 Budget

    An overview of key announcements relating to illicit tobacco in the 2018 BudgetExternal Link was provided. The new measures are in response to the Final Report of the Black Economy Task ForceExternal Link and had been set out in a media releaseExternal Link by Minister for Revenue and Financial Services on 8 May 2018.

    Treasury, the ATO and Home Affairs will be progressing the legislative process which is to take effect from 1 July 2019. Enforcement resources will be allocated from 1 July 2018.

    The intent of the changes is to reduce the incidence of illicit tobacco. The ATO is working on implementing transitional arrangements to 1 July 2019 in relation to moving the taxing point.

    • The ATO 2015-16 tobacco tax gap

    The ATO released the 2015-16 tobacco tax gap on 7 May 2018. The net gap for 2015-16 was $594 million or 5.6%. Based on advice from the independent expert panel, the reliability rating for the tobacco tax gap estimate is medium.

      Last modified: 26 Nov 2018QC 57482