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WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer and Copyright Details
Customs Tariff Amendment Bill (No. 1) 1998
Date Introduced: 2 April 1998
House: House of Representatives
Portfolio: Customs and Consumer Affairs
Commencement: The proposed amendments reducing the rate of customs duty
on aviation gasoline are taken to have commenced on 3 July 1997, and those
allowing the importation of prescribed goods by, or on behalf of, non-Australian
Olympic and Paralympic family members on 1 March 1998.
The major amendments proposed by the Bill:
- reduce the rate of customs duty on aviation gasoline from $0.18003
per litre to $0.17403 per litre from 3 July 1997; and
- allow the importation of prescribed goods by, or on behalf of, non-Australian
Olympic and Paralympic family members for use in, or for purposes related
to, the Sydney 2000 Olympic and Paralympic Games and certain related
events.
As there is no central theme to the Bill, a brief background to each
major amendment will be outlined below.
General Note: Customs tariffs can be altered by two methods, namely by
direct legislation or through the introduction of Customs Tariff Proposals
which are subsequently supported by legislation. When Parliament is sitting,
notice of tariff changes may be by means of Customs Tariff Proposals introduced
into the House of Representatives. When Parliament is not sitting, notice
of tariff changes is by publication in the Commonwealth Gazette.
Notifications are subsequently introduced into the House of Representatives
as Customs Tariff Proposals. Customs Tariff Proposals are enacted by means
of legislation which alters the Customs Tariff Act 1995.
Customs duty is payable upon the importation of goods into Australia.
Most goods which are imported attract a rate of customs duty.
Amendments relating to aviation gasoline
Customs Tariff Proposal No. 5 (1997) proposed a reduction, with effect
from 3 July 1997, in the rate of customs duty payable on aviation gasoline
(AVGAS) from $0.18003 per litre to $0.17403 cents per litre. The amendments
proposed by Schedule 2 of the Bill seek to give legislative effect
to Customs Tariff Proposal No. 5 (1997).
The customs duty on AVGAS assists in recovering Airservices Australia
costs of providing certain services to the aviation sector, including
terminal and navigational services.
While Government information sources are more circumspect in indicating
the source of the proposed reductions in the customs duty payable on AVGAS
proposed by the Bill, Airservices Australia indicate the source to be
the rationalisation of services provided by Airservices Australia.
The Government states in the Second Reading Speech to the Bill that:
In reviewing the costs of providing these services for 1997-98, Airservices
Australia proposed a reduction in the duty of 0.6 cents per litre on
AVGAS.
In Airservices Australia (AA) Annual Report 1996-1997, AA states:
[the reduction in duty] is the result of anticipated savings in costs
following the rationalisation of services at a number of General Aviation
Airport Procedures (GAAP) aerodromes.(1)
Amendments relating to the Sydney 2000 Olympic
and Paralympic Games and certain preceding events.
The amendments proposed by Schedule 4 of the Bill give legislative
effect to Customs Tariff Proposal No. 2 (1998) which allowed, from 1 March
1998, the importation of prescribed goods by, or on behalf of, non-Australian
Olympic and Paralympic Family members for use in, or for purposes related
to certain events, including:
- the Sydney 2000 Olympic Games; and
- the Sydney 2000 Paralympic Games.
The rationale given by the Government in the Explanatory Memorandum to
the Bill for the proposed amendment is commitment to the Sydney Organising
Committee for the Olympic Games.
It is unclear from both the Second Reading Speech and Explanatory Memorandum
to the Bill what constitutes a 'Family member'. However, the Explanatory
Memorandum to the Bill states:
By-laws will prescribe the scope of non-Australian Olympic and Paralympic
Family membership ... . It is proposed to exclude alcohol and tobacco
products, items of equipment which are more appropriately handled under
the temporary importations provision, and potential high revenue items
such as vehicles and digital communications equipment.(2)
The cost of the proposed amendments to Commonwealth revenues is stated
by Government in the Explanatory Memorandum to the Bill to be inestimable.
1. Airservices Australia, Annual Report 1996-97, 35.
2. Customs Tariff Amendment Bill (No. 1) 1998, Explanatory Memorandum,
8.
Ian Ireland
20 April 1998
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to Senators and
Members of the Australian Parliament. While great care is taken to ensure
that the paper is accurate and balanced, the paper is written using information
publicly available at the time of production. The views expressed are
those of the author and should not be attributed to the Information and
Research Services (IRS). Advice on legislation or legal policy issues
contained in this paper is provided for use in parliamentary debate and
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IRS staff are available to discuss the paper's contents with Senators
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and their staff but not with members of the public.
ISSN 1328-8091
© Commonwealth of Australia 1998
Except to the extent of the uses permitted under the Copyright Act
1968, no part of this publication may be reproduced or transmitted
in any form or by any means, including information storage and retrieval
systems, without the prior written consent of the Parliamentary Library,
other than by Members of the Australian Parliament in the course of their
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Published by the Department of the Parliamentary Library, 1998.
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