Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

I give notice that, on the next day of sitting, I shall move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to the following bills, allowing them to be considered during this period of sittings:ACIS Administration Amendment (Application) Bill 2009,Coal Mining Industry (Long Service Leave Funding) Amendment Bill 2009,Customs Tariff Amendment (Incorporation of Proposals) Bill 2009, andForeign Acquisitions and Takeovers Amendment Bill 2009.

I also table statements of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statements incorporated in Hansard.

Leave granted.

The statements read as follows—

ACIS ADMINISTRATION AMENDMENT (APPLICATION) Bill 2009

Purpose of the Bill

The bill amends the commencement date of the ACIS Administration Amendment Act 2009 (the Act) to 1 January 2010.

Reasons for Urgency

The Act provides for a smooth transition to the new Automotive Transformation Scheme (ATS) by repealing ACIS Stage 3 and by providing increased uncapped assistance for persons registered under ACIS as motor vehicle producers from 1 January 2010.

The amendment to the commencement date is necessary to meet the Government’s commitment in A New Car Plan for a Greener Future to ensure a smooth transition to the ATS and to increase uncapped assistance for motor vehicle producers. This change must be in place from 1 January 2010.

COAL MINING INDUSTRY (LONG SERVICE LEAVE FUNDING) AMENDMENT BILL

Purpose of the Bill

The bill amends the Coal Mining Industry (Long Service Leave Funding) Act 1992 (the Funding Act) so that it applies to preserved coal industry long service leave entitlements in the Fair Work Act 2009.

Long service leave entitlements for employees in the black coal mining industry flow from industrial instruments (awards and workplace agreements) and from contracts of employment.  They are based on an employee’s service in the industry, rather than service with a particular employer.  Funding of long service leave entitlements is supported by an industry scheme established by the Funding Act and related legislation.  The Funding Act provides for the reimbursement of employers where they make a payment to an eligible employee in respect of the employee’s entitlement to long service leave. 

From 1 January 2010, the present industry awards prescribing long service leave will be superseded by modern awards under the Fair Work Act 2009 (the FW Act) which are not permitted to include long service leave entitlements.  While long service leave entitlements will be preserved under section 113 of the FW Act after 1 January 2010 they will no longer be award-based.  As a consequence, from 1 January 2010, employers in the black coal mining industry will not be entitled to reimbursement from the Fund in respect of long service payments they make to employees in respect of the preserved entitlements. 

The proposed amendments will ensure that the Funding Act applies to the preserved entitlements in the FW Act.  The proposed amendments would also include a definition of the “black coal mining industry” to align with the scheme with the Modern Award.  That definition will also apply to related legislation, that is, the Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992 and the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992.

Reasons for Urgency

The bill requires passage in the 2009 Spring sittings as existing arrangements expire on 1 January 2010.

CUSTOMS TARIFF AMENDMENT (INCORPORATION OF PROPOSALS) BILL

Purpose of the Bill

The bill amends the Customs Tariff Act 1995 (the Customs Tariff) to incorporate alterations that were contained in three Customs Tariff Proposals tabled in the House of Representatives during 2009.

These Customs Tariff Proposals are:

• Customs Tariff Proposal (No. 1) 2009.  This Proposal created a new item 41H in Schedule 4 to the Customs Tariff to provide Free rates of duty for certain goods used in automotive testing and evaluation.  This Proposal was tabled in the House of Representatives on 11 February 2009.
• Customs Tariff Proposal (No. 2) 2009.  This Proposal increased rates of customs duty for certain alcohol and tobacco products applicable to goods imported under the Australia-Chile Free Trade Agreement.  The Customs Tariff Amendment (Australia-Chile Free Trade Agreement Implementation) Act 2008 gave effect to the Australia-Chile Free Trade Agreement but did not take into account subsequent alterations to the Customs Tariff, as a result of the February 2009 Consumer Price Index increases and increased duty for certain spirit-based alcoholic beverages, known as “ready-to-drink” beverages or “alcopops”.  Customs Tariff Proposal (No. 2) 2009 was tabled in the House of Representative on 25 February 2009 and gave effect to those increases.
• Customs Tariff Proposal (No. 4) 2009.  This Proposal increased rates of customs duty for certain beer and grape wine products, as a consequence of the August 2009 Consumer Price Index increases.  This Proposal was tabled on 16 September 2009.

When enacted, the Customs Tariff (Incorporation of Proposals) Bill 2009 will amend the Customs Tariff to give legal effect to the alterations contained in the Customs Tariff Proposals.

Reasons for Urgency

Section 226 of the Customs Act 1901 provides protection against legal proceedings for Customs and Border Protection officers for a period of 12 months after the date a customs tariff alteration is proposed.  The expiration of this protection means that any import duty collected during this 12 month period is potentially recoverable by importers.

Customs Tariff Proposal (No. 1) above provides reduced duty rates for goods and is unlikely to be subject to a legal challenge.  The critical Proposal is Customs Tariff Proposal (No. 2) 2009, that was tabled in the House of Representatives on 25 February 2009. 

This Proposal increased rates of duty for certain alcohol and tobacco products imported under the Australia-Chile Free Trade Agreement. 

Should the alterations contained in this Proposal not be incorporated in the Customs Tariff prior to 25 February 2010, additional duty paid before this date may be subject to legal challenge.

Successful passage in 2009 will enable the amended duty rates to be incorporated in the Customs Tariff prior to February 2010 and will provide certainty for importers, as well as the automotive industry.

FOREIGN ACQUISITIONS AND TAKEOVERS AMENDMENT BILL 2009

Purpose of the Bill

The Bill amends the Foreign Acquisitions and Takeovers Act 1975 to clarify that the foreign investment screening regime applies equally to all foreign investments irrespective of the way they are structured.

Reasons for Urgency

On 12 February 2009, the Treasurer announced that the Government will amend the Foreign Acquisitions and Takeovers Act 1975 to clarify the operation of the foreign investment screening regime.  In particular, the amendments will ensure that any investment, including through instruments such as convertible notes, will be treated as equity for the purposes of the Act. 

These amendments will apply retrospectively from the date of the Treasurer’s announcement.  Introduction and passage of this Bill in the 2009 Spring sittings will ensure that the Government has the capacity to examine all investment proposals that could potentially be against Australia’s national interest.  Delaying the passage of this Bill may potentially cause confusion for prospective foreign investors wishing to invest in Australia.