House of Representatives

Customs Tariff Amendment (Tobacco) Bill 2016

Customs Tariff Amendment (Tobacco) Act 2016

Excise Tariff Amendment (Tobacco) Bill 2016

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP and the Assistant Minister for Immigration and Border Protection, the Hon Alex Hawke MP)

Australian Bureau of Statistics 2015, National Health Survey, 2014-15, 'Table 9: Smoking - Australia', cat. no. 4364.0.55.001.

Emily Banks, Grace Joshy, Marianne F Weber, Bette Liu, Robert Grenfell, Sam Egger, Ellie Paige, Alan D Lopez, Freddy Sitas and Valerie Beral, 'Tobacco smoking and all-cause mortality in a large Australian cohort study: findings from a mature epidemic with current low smoking prevalence' BMC Medicine, 2015, Volume 13, Number 1, Page 1

Council of Australian Governments. National Healthcare Agreement. 2012, Council of Australian Governments Canberra.

Intergovernmental Committee on Drugs. 2012. National Tobacco Strategy 2012-2018. Commonwealth Of Australia: Canberra.

The final report of the Australia's Future Tax System Review (AFTS), 2011 Commonwealth of Australia 2011. Available from http://taxreview.treasury.gov.au/content/Content.aspx?doc+html/home.htm.

World Health Organisation Technical Manual on Tobacco Tax Administration 2010 Reprinted 2011, p. 104.

Treasury analysis, 2015

The report is available at: http://www.surgeongeneral.gov/library/reports/50-years-of-progress/index.html, Executive Summary, p.4, para 3.

Ibid. Preface.

Doll R, Peto R, Boreham J and Sutherland I. 'Mortality in relation to smoking: 50 years' observations on male British doctors'. British Medical Journal, 2004. 328: 1519-33.

Banks et.al, 'Tobacco smoking and all-cause mortality in a large Australian cohort study: findings from a mature epidemic with current low smoking prevalence' BMC Medicine, 2015 Vol.13 No. 1

U.S. Department of Health and Human Services (2010). How Tobacco Smoke Causes Disease: The Biology and Behavioural Basis for Smoking Attributable Disease. Fact Sheet. National Centre for Chronic Disease Prevention and Health Promotion, Office of Smoking and Health. Atlanta. Available from: http://www.cdc.gov/tobacco/data_statistics/fact_sheets/cessation/quitting/index.htm#benefits.

Australian Institute of Health and Welfare 2014. National Drug Strategy Household Survey detailed report 2013. Drug statistics series no. 28. Cat. no. PHE 183. Canberra: AIHW.

Australian Institute of Health and Welfare 2016. Australian Burden of Disease Study: Impact and causes of illness and death in Australia 2011. Australian Burden of Disease Study series no. 3. BOD 4. Canberra: AIHW.

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Cancer Council Australia 2016, Link between smoking and cancer Available from: http://wiki.cancer.org.au/policy/Tobacco_control/Link_between_smoking_and_cancer#_ga=1.240462277.734311134.1455579995

Australian Institute of Health and Welfare 2016. Australian Burden of Disease Study: Impact and causes of illness and death in Australia 2011. Australian Burden of Disease Study series no. 3. BOD 4. Canberra: AIHW.

Collins D and Lapsley H. 2008. The costs of tobacco, alcohol and illicit drug abuse to Australian Society in 2004/05. Commonwealth of Australia: Canberra. p. 40, Table 13.

ibid.

ibid. p. 65.

ibid. p. 59.

For explanation of valuation of life see page 15 of the study.

ibid. p. 67.

ibid. p. 14.

ibid. p. xi.

Hurley, S. Chapter 17: The economics of tobacco control, in Scollo, MM and Winstanley, MH [editors]. Tobacco in Australia: Facts and issues. 4th ed. Melbourne: Cancer Council Victoria; 2012. Last updated November 2011. Available from: http://www.tobaccoinaustralia.org.au/downloads/chapters/Ch17_Economics.pdf.

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Medical care expenditures attributable to cigarette smoking during pregnancy - United States, 1995. Morbidity and Mortality Weekly Report. 1997;46(44):1048-50. Available from: http://www.cdc.gov/mmwr/PDF/wk/mm4644.pdf.

Whitehouse JD, Friedman ND, Kirkland KB, Richardson WJ and Sexton DJ. The impact of surgical-site infections following orthopedic surgery at a community hospital and a university hospital: adverse quality of life, excess length of stay, and extra cost. Infection Control and Hospital Epidemiology. 2002;23(4):183-9. Available from: http://www.journals.uchicago.edu/ICHE/journal/issues/v23n4/4183/4183.text.html?erFrom=-2198106237673852801Guest.

WHO 2008. 'WHO Guidelines for the implementation of Article 11 of the WHO FCTC: Packaging and labelling of tobacco products.' Available from: http://www.who.int/fctc/guidelines/adopted/article_11/en/

Hammond, Fong, McNeill, Borland, Cummings. 2006 Effectiveness of cigarette warning labels in informing smokers about the risks of smoking: findings from the International Tobacco Control (ITC) Four Country Survey Tobacco Control 115 19-25. Available at http://tobaccocontrol.bmj.com/content/15/suppl_3/iii19.full.

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King B, Borland R. The 'low tar' strategy and the changing construction of Australian cigarettes. Nicotine & Tobacco Research 2004;6(1):85-94.

Kozlowski & O'Connor. Cigarette Filter Ventilation is a Defective Design Because of Misleading Taste, Bigger Puffs and Blocked Vents. Tobacco Control 2002:11(Suppl I):i 40-i50.

ibid.

Weinstein, Marcus and Moser. 2005. Smoker's unrealistic optimism about their risk. Tobacco Control Vol 14,pp 55-59.

Weinstein, Slovic, Waters et al. 2004 Public understanding of the illnesses caused by cigarette smoking. Nicotine & Tobacco Research. 6(2) p349-355. AND Weinstein, Marcus and Moser. 2005. Smoker's unrealistic optimism about their risk. Tobacco Control Vol 14 pp 55-59.

Weinstein, Slovic, Waters et al. 2004 Public understanding of the illnesses caused by cigarette smoking. Nicotine & Tobacco Research. 6(2) pp 349-355.

Weinstein, Marcus and Moser. 2005. Smoker's unrealistic optimism about their risk. Tobacco Control Vol 14 p55-59.

Weinstein, Slovic & Gibson, 2003. Accuracy and optimism in smokers' beliefs about quitting. Nicotine & Tobacco Research. 6(Suppl 3) pp 375-380.

Eureka Strategic Research, 2005. Youth Tobacco Prevention Project. Australian Government Department of Health and Ageing.

Eureka Strategic Research, 2005. Youth Tobacco Prevention Project. Australian Government Department of Health and Ageing.

U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office of Smoking and Health, 2012.

National Preventative Health Taskforce. 2009. Australia: the healthiest country by 2020, National Preventative Health Strategy - the roadmap for action 30 June 2009. Commonwealth of Australia: Canberra.

Fong, Hammond, Laux et al, 2004 The near universal experience of regret among smokers in four countries: Findings from the International Tobacco Control Policy Evaluation Survey. Nicotine & Tobacco Research. Vol 6 (Suppl 3) p341-351. Available at http://ntr.oxfordjournals.org/content/6/Suppl_3/S341.abstract.

Cooper, Borland & Yong. 2011 Australian smokers increasingly use help to quit, but number of attempts remains stable: Findings from the International Tobacco Control Study 2002-2009. Australian & NZ Journal of Public Health. Vol 35 no 4 p 368-376 available at http://onlinelibrary.wiley.com/doi/10.1111/j.1753-6405.2011.00733.x/pdf.

Cooper, Borland & Yong. 2011 Australian smokers increasingly use help to quit, but number of attempts remains stable: Findings from the International Tobacco Control Study 2002-2009. Australian & NZ Journal of Public Health. Vol 35 no 4, pp368-376 available at http://onlinelibrary.wiley.com/doi/10.1111/j.1753-6405.2011.00733.x/pdf.

Gruszin, S, Hetzel D and Glover J. Advocacy and action in public health: lessons from Australia over the 20th century. Canberra: Australian National Preventive Health Agency, pp 118-120.

Australian Government. Preventative Health Taskforce. 2009. Australia: the healthiest country by 2020. Technical Report No. 2. Tobacco control in Australia: making smoking history. Canberra: Commonwealth of Australia.

Department of Health and Ageing. 2003. Returns on investment in public health: An epidemiological and economic analysis prepared for the Department of Health and Ageing by Applied Economics, p. 22. Available at: http://www.health.gov.au/internet/main/publishing.nsf/Content/8E28958A40B64604CA257BF0001A4CCF/$File/roi_eea.pdf).

As cited in Gruszin, S, Hetzel D and Glover J. Advocacy and action in public health: lessons from Australia over the 20th century. Canberra: Australian National Preventive Health Agency, pp127-128.

Council of Australian Governments. National Healthcare Agreement. 2012, Council of Australian Governments Canberra.

Collins and Lapsley, op. cit, p. 4

Electronic cigarettes are devices for making mists for inhalation that usually simulate the act of cigarette smoking and are sometimes marketed as a tobacco replacement. Australian health authorities are concerned about the use of electronic cigarettes in Australia because of a lack of evidence on their safety and efficacy. The impact of wide scale use of these devices on tobacco use is not known, and the outcome in the community could be harmful.

WHO Framework Convention on Tobacco Control Price and tax polices (in relation to Article 6 of the Convention) (Technical Report by WHO's Tobacco Free Initiative, 2010 FCTC/COP/4/11 15 August 2010, paragraphs 4-6.

Post-implementation Review 25 per cent tobacco Excise Increase The Treasury February 2013 p. 16 Available on the website of the Office of Best Practice Regulation. http://ris.finance.gov.au/category/post-implementation-reviews p. 25.

Scollo, M. Chapter 13, The pricing and taxation of tobacco products in Australia, in Scollo, MM and Winstanley, MH [editors]. Tobacco in Australia: Facts and issues. 4th edn. Melbourne: Cancer Council Victoria; 2012. Available from: http://www.tobaccoinaustralia.org.au/chapter-13-taxation.

Australian Bureau of Statistics 2015, National Health Survey, 2014-15, 'Table 9: Smoking - Australia', cat. no. 4364.0.55.001. Available from http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/4364.0.55.0012014-15?OpenDocument

Australian Bureau of Statistics, 2015 National Aboriginal and Torres Strait Islander Social Survey, 2014-15. Cat.no 4714 Available from: http://www.abs.gov.au/ausstats/abs@.nsf/mf/4714.0/

International Agency for Research on Cancer, Chapter 7. Tax, price and tobacco use among the poor, in Effectiveness of tax and price policies for tobacco control 2011, IARC: Lyon, France.

Hayes L. Smokers' Responses to the 2010 Increase to Tobacco Excise: Findings from the 2009 and 2010 Victorian Smoking and Health Surveys. CBRC Topline Research Report. Prepared for Quit Victoria. November 2011, Centre for Behavioural Research in Cancer, The Cancer Council Victoria: Melbourne.

Scollo M, Zacher M, Warne C, Hayes L, Durkin S and Wakefield M. Impact in Victoria of the April 2010 25% Increase in Excise on Tobacco Products in Australia: Short-term Effects on Prevalence, Reported Quitting and Reported Consumption, Real Cost, and Price-minimising Strategies in Victoria. April 2012, Centre for Behavioural Research in Cancer, The Cancer Council Victoria: Melbourne.

Chaloupka, F.J., A. Yurekli and Fong (2012). Tobacco taxes as a tobacco control strategy. Tobacco Control; 21:172-180.

Scollo, M., et al., Impact in Victoria of the April 2010 25 per cent increase in excise on tobacco products in Australia. Short-term effects on prevalence, reported quitting and, reported consumption, real cost, and price-minimising strategies, 2012, Centre for Behavioural Research in Cancer, Cancer Council Victoria: Melbourne, Australia.

International Agency for Research on Cancer, Chapter 3. Tobacco industry pricing, price-related marketing and lobbying, in Effectiveness of tax and price policies for tobacco control2011, IARC: Lyon, France.

IBISWorld Industry Report F3606b Tobacco Product Wholesaling in Australia, August 2015 op cit p.4

Ibid op. cit p.21

Ibid op. cit p.8

Post-implementation Review: 25 per cent tobacco excise increase op. cit. p.25.

IBISWorld Industry Report F3606b, Tobacco Product Wholesaling in Australia August 2015 op. cit. p.12

IBISWorld Industry Report C1220 Cigarette and Tobacco Product Manufacturing in Australia July 2013

British American Tobacco Australasia Media Release, May 2016, available from: http://www.bata.com.au/group/sites/bat_9rnflh.nsf/vwPagesWebLive/DO9RNMTE/$FILE/medMDA9M8WN.pdf?openelement

Cancer Council Media Release, May 2016, available from: http://www.cancer.org.au/content/pdf/News/MediaReleases/2016/3%20May%20Budget%20FINAL.pdf

Heart Foundation, 'Tobacco tax helps take the puff out of smoking', May 2016, available from: http://heartfoundation.org.au/news/tobacco-tax-helps-take-the-puff-out-of-smoking

Jeff Rogut, 'Tobacco tax all about money not health', April 2016, available from: https://insidesmallbusiness.com.au/finance/tobacco-tax-all-about-money-not-health

The Canberra Times, 'Retailers unimpressed by potential $40 cigarette pack' March 17 2016, available from: http://www.canberratimes.com.au/act-news/retailers-unimpressed-by-potential-40-cigarette-pack-20160316-gnk571.html

Cancer Council submission to the Re:think discussion paper, 2015. Available from: http://bettertax.gov.au/files/2015/06/Cancer-Council-Australia-Submission-2.pdf

Heart Foundation submission to the Re:think discussion paper, 2015. Available from http://bettertax.gov.au/files/2015/06/Heart-Foundation.pdf


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