David Johnston (WA, Liberal Party, Minister for Justice and Customs) Share this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

INDUSTRIAL CHEMICALS (NOTIFICATION AND ASSESSMENT) AMENDMENT (COSMETICS) BILL 2007

The Industrial Chemicals (Notification and Assessment) Amendment (Cosmetics) Bill 2007 delivers on the Government’s commitment to reform the regulation of cosmetics by ensuring more effective, streamlined regulation and continued safeguarding of health, safety and environmental standards.

In November 2005, the Government endorsed the reform of cosmetic regulation as reflected in the report entitled Regulation of Cosmetic Chemicals: Final Report and Recommendations. 

In the absence of legislative underpinning, the reforms were implemented on an administrative basis in relation to some specific cosmetics.  However, the administrative arrangements are not enforceable and do not apply to some categories of cosmetics (such as skin whitening products and anti-ageing products). 

These amendments represent an important next step by providing legislative underpinning for the reforms. 

While the ingredients in cosmetics have been regulated by the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) as industrial chemicals for quite some time, the Bill represents an extension of the existing approach by enabling the Minister for Health and Ageing to make standards for cosmetic products as a whole, that are imported into, or manufactured in, Australia.

The proposed standard for cosmetics will be based on the existing NICNAS Cosmetic Guidelines and are being developed in consultation with key stakeholders. 

The approach adopted will deliver greater clarity and certainty for industry, capacity for NICNAS to take action in the event of non-compliance and will ensure the protection of public health, occupational health and safety and the environment.  The reforms also increase international harmonisation with Australia’s key trading partners and ensure greater access to the reforms for all relevant cosmetics products, by reducing the regulatory burden and costs to industry.

The Bill provides the opportunity to make minor technical amendments to improve clarity and consistency within the Industrial Chemicals (Notification and Assessment) Act 1989.  These minor amendments will have no significant impact on business, do not place any restriction on competition and do not place any significant additional requirements on the industrial chemicals industry. 

These amendments have been developed in close consultation with industry, government and the community.  All stakeholders support the proposed amendments and I believe they further improve the already world-class system for the regulation of industrial chemicals in Australia.

INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (No. 1) 2007

This Bill will give the force of law to renegotiated tax treaties with France and Norway.  This is a prerequisite to their entry into force.  This Bill inserts the text of the Convention between Australia and France and the Convention between Australia and Norway into the International Tax Agreements Act 1953.

The Bill repeals the Schedules to the International Tax Agreements Act 1953 that give the force of law to the existing tax treaties with France and Norway and the separate Airline Profits Agreement with France, which deals with taxation of airline profits.  The repeal of these Schedules is subject to transitional rules in respect of assessments of tax relating to the years in which the existing agreements were in effect.

The Conventions between Australia and France and Australia and Norway were signed on 20 June 2006 and 18 August 2006 respectively.

Details of the treaties were announced and copies were made publicly available following signature.  The treaties have also been tabled in both Houses of Parliament and have been reviewed by the Joint Standing Committee on Treaties.

The Conventions will further strengthen the economic relations between Australia and the two treaty partners.  The Conventions serve as another step in facilitating a competitive and modern tax treaty network for companies located in Australia.  The Conventions will also satisfy Australia’s most favoured nation obligations under the existing treaties with France and Norway.

Both Conventions will substantially reduce withholding taxes on certain dividend, interest and royalty payments in line with those provided in our tax treaties with the United Kingdom of Great Britain and Northern Ireland and the United States of America.  This will provide long-term benefits for business, making it cheaper for Australian-based business to obtain intellectual property, equity and finance for expansion.

The Conventions will assist trade and investment flows between Australia and France and Australian and Norway.  The treaties further demonstrate the government’s commitment to update ageing treaties with major trading partners as recommended by the Review of Business Taxation and the Review of International Tax Arrangements.  The treaties will produce a positive economic outcome for Australia.  Gains include a larger and faster-growing Australian economy with flow-on effects on employment, trade and investment.

The new Conventions achieve a balance of outcomes that will provide Australia with a competitive tax framework for international trade and investment, while ensuring the Australian revenue base is sustainable and suitably protected.

Both Conventions facilitate improved integrity aspects of administering and collecting tax from those with tax obligations in either or both jurisdictions.  The Conventions reflect the Government’s decision to incorporate enhanced information exchange provisions which meet modern OECD standards and to provide for reciprocal assistance in collection of tax debts. 

The Government believes that the conclusion of the Conventions will strengthen the integrity of Australia’s tax treaty network through bi-lateral cooperation between countries to help ensure all taxpayers pay their fair share of tax.

Both Conventions will enter into force after completion of the necessary processes in both countries and will have effect in accordance with their terms.  The enactment of this Bill, and the satisfaction of the other procedures relating to proposed treaty actions, will complete the processes followed in Australia for those purposes.

Full details of the amendments are contained in the explanatory memorandum.

Debate (on motion by Senator Johnston) adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.