Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) 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—

Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022

The Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022 amends the Customs Act 1901 (the Customs Act) to implement the India-Australia Economic Cooperation and Trade Agreement.

India is a key strategic and economic partner for Australia and the Australian Government is committed to accelerating our economic ties with India. The India-Australia Economic Cooperation and Trade Agreement will be an important driver for deepening our relationship.

Recent years have seen remarkable growth in the trading relationship between India and Australia, fuelled by the many complementarities between our two economies. The India-Australia Economic Cooperation and Trade Agreement will secure Australia's foothold in the world's fastest growing major economy and enable Australian businesses to unlock or expand their operations in a market of nearly one and a half billion consumers, with a GDP of $4.3 trillion.

The Agreement represents significant new trade diversification opportunities for Australian business. From the day IA-ECTA enters into force, 85 per cent of Australian goods exports by value to India will enter without tariffs and an additional 5 per cent will have tariffs eliminated over periods not exceeding 10 years. This is commercially significant for up to $14.8 billion worth of Australian merchandise trade destined for the Indian market each year. The Agreement will also provide certainty and support Australian services suppliers and professionals doing business in India, currently our third largest services export market.

The amendments contained in this bill will insert into the Customs Act new rules of origin for 'Indian originating goods' and provisions for document retention and verification for 'Australian originating goods'. The amendments will outline when imported goods may be considered to have originating status and be eligible for preferential tariff treatment. Complementary amendments to the Customs Tariff Act 1995 will provide for the preferential rates of customs duty applicable to goods that are originating under the Agreement. These will be made by the Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022.

These bills were referred to the Joint Standing Committee on Treaties (JSCOT) on 1 August 2022 and debate on the bills will be dependent on the advice provided in its report. It is anticipated that JSCOT will report in mid-November.

I commend this bill to the Chamber.

Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022

The Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022 will amend the Customs Tariff Act 1995 to implement the India-Australia Economic Cooperation and Trade Agreement (IA-ECTA).

The amendments contained in this Bill will insert a new Schedule of preferential rates of customs duty for goods that are Indian originating. Schedule 10A will be comprised of tariff subheadings for goods that have a rate of customs duty other than 'Free' at entry into force of the IA-ECTA. The goods classified to these subheadings will include tobacco, alcohol and fuel products, which will have an excise-equivalent rate of customs duty, and certain goods containing iron, steel and aluminium, which will be phased to 'Free' over approximately five years.

The Bill will also amend concessional items in Schedule 4 of the Customs Tariff Act 1995 to extend concessional treatment to goods that are Indian originating.

The amendments contained in this Bill complement the amendments contained in the Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022.

I commend this bill to the Chamber.

Customs Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022

The Customs Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022 amends the Customs Act 1901 (the Customs Act) to implement the Free Trade Agreement between Australia and the United Kingdom of Great Britain and Northern Ireland (the Agreement).

The Agreement will bring both commercial and strategic benefits. The United Kingdom is the world's fifth largest economy and our fifth largest two-way trading partner, with A$31.8 billion in goods and services trade in 2020. The Agreement will deliver preferential market access for Australia's key exports, providing important diversification opportunities and removing barriers that were impeding trade while the United Kingdom was a member of the European Union. It will also improve certainty for exporters and importers, service suppliers and investors across the whole economy.

The Agreement will facilitate a strong and resilient economic recovery from COVID-19, while reducing the vulnerability of Australia's trade and investment to future crises. It will enhance Australia's economic engagement with the United Kingdom through strengthened trade rules that will help build upon our already healthy trading relationship.

The amendments contained in this bill would insert into the Customs Act the rules of origin and document retention requirements called for by the Agreement. Those amendments outline when imported goods may be considered to have originating status and be eligible for preferential tariff treatment. Complementary amendments to the Customs Tariff Act 1995 are required to provide for these preferential rates of customs duty.

The Joint Standing Committee on Treaties is currently considering the Agreement and is scheduled to report in mid-November. This bill is being introduced now to give the Parliament more time to consider the amendments required to implement this Agreement.

I commend this bill to the Chamber.

Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022

The Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022 will amend the Customs Tariff Act 1995 (the Customs Tariff Act) to implement the preferential rates of customs duty for goods determined to be United Kingdom originating. These amendments will ensure that Australia fulfils its obligations as a signatory to the Australia-United Kingdom Free Trade Agreement and is prepared for the Agreement to enter into force.

This bill will insert a new Schedule of duty rates into the Customs Tariff Act. Schedule 15 will contain the preferential rates of customs duty for imported goods that satisfy the rules of origin set out in the Agreement. Australia has committed to reducing the duty rate on most originating goods to 'Free' over the years following the entry into force of the Agreement. Excise equivalent goods, which are certain fuel, alcohol, tobacco and petroleum products, that are originating under the agreement will continue to have excise equivalent customs duties applied, so they receive the same treatment as domestically produced equivalents.

The bills will also provide for the suspension of preferential tariffs for United Kingdom originating goods classified to certain subheadings of Chapters 72 and 73 of Schedule 3 of the Customs Tariff Act, which deal with iron and steel goods. When activated, the customs duty rate applied to these goods would be the 5 per cent general rate of customs duty which currently applies. The suspension will be activated when the United Kingdom global safeguard applies to Australian steel products. The United Kingdom global steel safeguard is currently in place and has been extended to 30 June 2024. The suspension, therefore, will apply from entry into force of the Agreement.

The suspension of preference will end from the date that the United Kingdom Safeguard ends or no longer applies to Australian steel. From this date the preferential duty rate applied to certain goods from the United Kingdom will be reduced in accordance with the rate that applies under Schedule 15.

Finally, this bill also amends certain tariff concessions to maintain their scope and ensure that commitments made under the Agreement are honoured.

The amendments in this bill complement the amendments in the Customs Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022, which will amend the Customs Act 1901.

I commend this bill to the Chamber.

Treasury Laws Amendment (Australia-India Economic Cooperation and Trade Agreement Implementation) Bill 2022

The bill will amend the international tax agreements act 1953 to implement the agreement reached between Australia and India on 2 April 2022, as part of the Australia-India Economic Cooperation and Trade Agreement.

Specifically, the Bill will adjust the taxation on certain payments or credits made to Indian residents providing technical services remotely to Australian customers. It aligns Australia's tax treatment of Indian residents providing technical services remotely, with residents from other countries.

As Australia's seventh largest trade partner, India shares a close economic relationship with Australia. This measure will further strengthen this relationship.

In accordance with the trade agreement's side letters on taxation, this measure will commence on the later of the day of Royal Assent and the day the trade agreement enters into force. It will apply to assessments for income years starting on or after the commencement of this amendment. It does not commence at all if the trade agreement never enters into force.

Full details of the measure are contained in the Explanatory Memorandum.

Debate adjourned.

I move:

That resumption of the debate be made an order of the day for a later hour.

Question agreed to.