Australia increases customs duty rates on tobacco and tobacco products effective 1 September 2026
Date of publication: September 9, 2026
Introduction
Australia Customs Notice 2026/32 announced updated excise-equivalent customs duty rates for tobacco and tobacco products effective
1 September 2026
. The changes result from the biannual indexation mechanism linked to Average Weekly Ordinary Time Earnings (AWOTE), which produced an indexation factor of 1.016
for September 2026. The notice also confirms revised duty rates for products assessed on a per-stick basis and products assessed on a per-kilogram basis.Key changes
AWOTE indexation outcome
The September 2026 AWOTE calculation resulted in an indexation factor of
1.016
, which exceeded the threshold of one and therefore triggered an increase in applicable tobacco customs duty rates. The updated rates apply from 1 September 2026
.Duty rates for tobacco products
The revised excise-equivalent customs duty rates are summarized below.
Customs tariff subheading(s) | New duty rate |
|---|---|
2401.10.00 | $2,587.90/kg |
2401.20.00, 2401.30.00, 2402.10.80, 2402.20.80, 2403.11.00, 2403.19.90, 2403.91.00, 2403.99.80, 2404.11.00 | $2,587.90/kg of tobacco content |
2402.10.20, 2402.20.20, 2403.19.10 | $1.55274/stick |
Impact on importers
Tobacco products assessed per stick
Importers of tobacco products subject to a per-stick duty calculation should apply the revised rate of $1.55274 per stick from 1 September 2026.
Tobacco products assessed per kilogram
Products assessed on a per-kilogram or per-kilogram-of-tobacco-content basis will be subject to the revised rate of $2,587.90 per kilogram of tobacco content.
Tariff classification review
Businesses importing tobacco products should review tariff classifications and ensure import declarations reflect the updated duty rates from the effective date to maintain compliance and accurate duty calculation.
Conclusion
The September 2026 indexation exercise resulted in higher customs duty rates for tobacco and tobacco products, with updated rates becoming effective on
1 September 2026
. Importers should review affected tariff classifications and update internal systems to account for the new rates.These changes have been updated in ONESOURCE Global Trade Content. For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk, tariff challenges and regulatory compliance, please contact your Account Manager or Customer Success Manager.