Andrew Giles (Scullin, Australian Labor Party, Shadow Minister for Cities and Urban Infrastructure) Share this | Hansard source

I rise to speak on the Customs Tariff Amendment (Incorporation of Proposals) Bill 2021. This is legislation that would amend the Customs Tariff Act 1995 to extend the free rate of customs duty to certain medical and hygiene products from 31 December 2022 until 30 June this year; provide for free rate of customs duties for goods for use in the F-35 Lightning II Joint Strike Fighter Program; and for prescribed motor vehicles and motor vehicle components for research and development activities by automotive service providers previously registered under the Automotive Transformation Scheme between 1 April 2021 and 30 June 2025.

This is a bill that Labor supports, because the amendments will facilitate continued access to medical products and hygiene products for use in combatting COVID-19. There is, of course, an ongoing need to prevent the spread of COVID-19 within the Australian community, and the products that we are talking about here will include face masks, gloves, clothes or gowns, goggles, glasses, eye visors, face shields, soaps, COVID-19 test kits and reagents, viral transport media and disinfectants. Also, the amendments contained in this bill will support continued domestic research and development in the automotive sector, and ensure that previously registered automotive service providers can continue to access the tariff concession. This will help automotive service providers maintain an Australian presence, including through the engineering services design and product development.

The bill contains three significant measures, as I touched on earlier. The first is to incorporate the Customs Tariff Proposal (No. 1) 2021, which was tabled in the parliament on 3 February. As has been made clear in the explanatory memorandum to the bill:

The provision of a "Free" rate of customs duty for certain medical and hygiene products to 30 June 2021 is estimated to reduce customs duty receipts by $3.8 million.

The second measure will also insert new items to provide a free rate of customs duty for goods that are for use in the program known as the F-35 Lightning II Joint Strike Fighter Program. Under the memorandum of understanding for the development of the joint strike fighter, Australia has committed to achieving tax neutrality under the F-35 Lightning II Joint Strike Fighter Program. This measure incorporates Customs Tariff Proposal (No. 2) 2021, which was tabled in the parliament on 17 March. The implementation for a free rate for goods associated with this will reduce receipts by $6.7 million across the forward estimates.

Finally, the third measure would insert a new item, section 39A, into schedule 4 to provide a free rate of customs duty for prescribed motor vehicles and motor vehicle components for research and development activities by automotive service providers previously registered under the Automotive Transformation Scheme and where the time for working out duty is between 1 April 2021 and 30 June 2025. This measure incorporates Customs Tariff Proposal (No. 3) 2021, tabled in May this year. The implementation of this free rate of customs is estimated to reduce receipts by $1.7 million across the forward estimates.

These measures commenced respectively on 1 January, 1 March and 1 April 2021 through notices of intention to propose customs tariff alterations and related customs tariff proposals, necessitating the amendment to the bill we're dealing with now. We must ensure Australia's domestic manufacturing capacity and capability through this prolonged COVID crisis and we must also support our long-term recovery. We must support industries that are of strategic importance. Therefore I move the following second reading amendment to this bill:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House:

(1) acknowledges the bill provides for reduced rates of customs duty for goods required to combat the COVID-19 pandemic;

(2) notes that the Government has failed to outline a long-term plan to support local industries that are of strategic importance and in our national interest to safeguard; and

(3) further notes that the Prime Minister's refusal to secure a variety of vaccines in accordance with world's best practice has left Australians dangerously exposed against highly infectious COVID-19 variants".

On this side of the House we will never forget, in the context of this legislation, that it was this coalition government that oversaw the destruction of our car industry. In 2013 the Liberals dared Australian automotive manufacturers to leave Australia and, sadly, they did. As a result of this action and others, the coalition has presided over the permanent loss of more than 55,000 manufacturing jobs in Australia.

The Morrison government has had over a year to invest in new manufacturing—

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