Greg Hunt (Flinders, Liberal Party, Parliamentary Secretary to the Minister for the Environment and Heritage) Share this | Link to this | Hansard source

I move:

Customs Tariff Proposal (No. 1) 2006

The Customs Tariff Proposal I have just tabled contains alterations to the Customs Tariff Act 1995, effective from 1 July 2006.

First, the proposal alters item 31 of schedule 4 to the customs tariff. This item currently allows the duty-free entry of certain aircraft parts, materials and test equipment for use in the manufacture, repair and maintenance of aircraft. Item 31 is proposed to be altered by extending duty-free entry to certain goods used in the modification of aircraft.

The extension of item 31 to include goods for use in the modification of aircraft will reduce costs to business and will provide a clear incentive to continue heavy maintenance work in Australia. This will strengthen the international competitiveness of Australia’s aviation and maintenance industries and is consistent with the government’s policy to improve the international competitiveness of Australia’s aerospace and aviation industries.

The main beneficiaries of this measure will be domestic airline and defence contractors, as well as Australia’s vibrant general aviation aircraft manufacturing and modification industry. Many of the firms in this sector are located in regional Australia and this alteration to the customs tariff will provide a new certainty to underpin their competitiveness in the world market.

This alteration to item 31 applies to goods entered for home consumption on or after 1 July 2006.

Secondly, the proposal will alter item 71 of schedule 4 to the customs tariff by expanding the Enhanced Project By-law Scheme to include the duty-free entry of qualifying goods for the power supply and water supply industries.

Currently, item 71 underpins the Enhanced Project By-law Scheme offering tariff concessions to major projects in the mining, resource-processing, agriculture, food-processing, food-packaging, manufacturing and gas supply industries for imported capital equipment that is not able to be sourced in Australia.

The inclusion of the power supply and water supply industries in the terms of item 71 will encourage investment, increase opportunities for Australian industry to participate in major projects, and lower business input costs.

The above alteration applies to goods imported and entered for home consumption on or after 1 July 2006.

Debate (on motion by Mr Gavan O’Connor) adjourned.