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

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 amends the Customs Tariff Act 1995 to remove the elements of this act that were legislated by the former government to apply the carbon tax through the fuel tax and excise system.

Importantly, this will reduce the increase in excise-equivalent customs duty on aviation gasoline and aviation jet fuel that represents an equivalent to the carbon tax applied to Australian imports.

Currently, Qantas imposes a carbon price surcharge of between $1.93 and $7.25 per passenger on all domestic flights, depending on the distance travelled. Virgin Australia imposes similar surcharges.

The repeal of the carbon tax will reduce one of the major components of airline costs and enable airlines to pass on a significant saving to travellers.

Debate adjourned.