The Government is making changes to the taxing point for tobacco as part of a package of measures which will crack down on illicit tobacco. As part of the 2018-19 Budget, the Government announced it would tax tobacco at the border and at the equivalent point of manufacture. From 1 July 2019, importers will be required to pay all duty and tax liabilities when tobacco enters the country, rather than when it leaves a licensed warehouse and enters the domestic market. This will reduce the potential for leakage from warehouses to the black market. Although there is currently no licensed commercial tobacco production in Australia, the taxing point for any potential future domestic manufacture of tobacco will also be changed to be consistent with the new taxing point for tobacco imports. The Government has released exposure draft legislation and explanatory material for amendments to give effect to the Budget announcement. The draft legislation available on this page concerns the proposed changes to the Excise Act 1901, which would apply to any tobacco manufactured in Australia. Public consultation on the exposure draft legislation and explanatory material will run for two weeks, closing on Wednesday 22 August 2018. The purpose of public consultation is to seek stakeholder views on the exposure draft legislation and explanatory material. The Department of Home Affairs has separately released the exposure draft on the proposed changes to the Customs Act 1901, which will apply to imports of tobacco. Consultation on these changes is available on the Home Affairs website.