Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to 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—

TAX LAWS AMENDMENT (EDUCATION REFUND) BILL 2008

This Government is committed to implementing an Education Revolution.

Because education is the engine room of prosperity and helps create a fairer, more productive society.

It is the most effective way we know, to build prosperity and spread opportunity.

A key part of the education revolution is helping parents meet the everyday costs of their children’s education.

Helping parents meet the costs of the books and the computers and the software our kids need, to get the best start.

That’s why the Budget included $4.4 billion to create a new Education Tax Refund.  The Education Tax Refund is a refundable tax offset of 50 per cent of eligible education expenses for children undertaking primary and secondary school studies. About 1.3 million families (with 2.7 million students) will be eligible for the Refund.

This bill will introduce the Education Tax Refund. Under the plan eligible families will be able to claim 50 per cent of eligible education expenses up to $750 for each child undertaking primary school, to provide a maximum tax offset of $375 per child, per year.

For children undertaking secondary school studies families will be able to claim 50 per cent of their eligible expenses up to $1,500 per child, to give a maximum tax offset of $750 per child, per year.

Eligible expenses for the purposes of the Education Tax Refund are laptops, home computers, printers, paper, education software, school textbooks and associated materials and trade tools. This includes purchase, lease, hire or hire-purchase costs of these items. In addition, the expenses of establishing and maintaining a home Internet connection are also included.

Parents and others entitled to Family Tax Benefit Part A and who have children undertaking primary or secondary school studies will be eligible for the Education Tax Refund.

In addition, those who would be eligible for Family Tax Benefit Part A in respect of a child but, for the fact that they or the child are in receipt of other payments such as Youth Allowance, Disability Support Pension or ABSTUDY Living Allowance, are also eligible for the Education Tax Refund.

Students who are living independently from their parents may also be eligible for the Education Tax Refund for their own expenses.

This tax offset will apply to eligible expenses incurred from 1 July 2008. Those eligible for the Education Tax Refund should start keeping receipts to allow them to claim the tax offset in their 2008-09 income tax return from 1 July 2009.

For those not required to lodge an income tax return, they will be able to access their entitlement to the offset through the Australian Tax Office by lodging a separate form at the end of the 2008-09 financial year.

The Education Tax Refund legislation will apply to the 2008-09 income tax year and later income years.

It will help families invest in their children’s education – at the same time that the Government is investing in a better education system.

For Labor, better education is the cornerstone of a decent society.

Education increases productivity and participation, it builds prosperity, and it also offers the hope of breaking the intergenerational cycle of poverty.

While our predecessors spoke of improving Australia’s education system, we are getting on with the job of real education reform.

Full details of amendments relating to the Education Tax Refund are contained in the explanatory memoranda.

TRANSPORT SECURITY AMENDMENT (2008 MEASURES No. 1) BILL 2008

The Transport Security Amendment (2008 Measures No. 1) Bill 2008 amends the Maritime Transport and Offshore Facilities Security Act 2003 and the Aviation Transport Security Act 2004.

Background

Australia’s economy relies heavily on the safe and secure movement of billions of dollars in imports and exports. As the international shipping industry continues to grow, so does its importance to the Australian economy. Similarly, the offshore oil and gas industry also contributes strongly to Australia’s prosperity.

In our skies, the aviation industry plays a key role in connecting Australia with the world and Australians with each other. Whether moving tourists, families, freight or business people, the aviation industry is essential to the efficient operation of the Australian economy.

More than ever, these industries underpin Australia’s economic growth and serve as the nation's gateways to the global economy. Given this significance, security is an important consideration.

The Maritime Transport and Offshore Facilities Security Act 2003 implements a preventive security regime to enhance security at ports, port facilities, ships and offshore facilities.

It gives effect to Australia’s international obligations under the International Maritime Organisation’s International Ship and Port Facility Security Code and under chapter 11-2 of the Safety of Life at Sea Convention 1974. The Act establishes a scheme which safeguards against unlawful interference with maritime transport and offshore facilities.

Likewise, security systems are an essential component of the aviation sector. The primary function of the Aviation Transport Security Act 2004 is to ensure Australia’s aviation industry is safeguarded and able to respond quickly against threats of unlawful interference with aviation.

The regulatory frameworks for both the maritime and aviation security Acts are centred on the development of preventive security plans for industry participants.

These plans set out security measures and procedures to safeguard against unlawful interference against the transport sector. The plans ensure industry participants have a planned and risk-based approach to the management of transport security.

Objective of the bill

The bill amends the maritime security Act to implement proposals arising from a review of the maritime security regime. The bill also amends both the maritime and aviation Acts to ensure flexibility for industry participants in the way they document their security arrangements as required by each Act.

The bill enhances current measures in both Acts to deliver effective security outcomes now and into the future.

The measures of this bill are an example of the continued and successful cooperation between the Department of Infrastructure, Transport, Regional Development and Local Government and Australia’s maritime, offshore and aviation industry stakeholders. It is a relationship based on consultation and cooperation.

Measures in the bill

Schedule 1 amends both the maritime and aviation security Acts to confirm that industry participants may hold multiple security plans, or programs, for different locations and operations.

Schedule 1 of the bill also amends the maritime security Act to:

• clarify its application to foreign regulated ships visiting an external Australian territory;
• allow for maritime and offshore security plans to have a life span of five years or less (but no less than 12 months);
• provide for regulations to develop nationally consistent mapping standards; and
• correct anomalies.

The maritime industry is a significant contributor to the Australian economy. Ensuring that a robust security regime is in place and maintained is important to the protection of the sector.

At present a foreign regulated ship visiting an external Australian territory such as Norfolk Island may not be required to comply with requirements such as the provision of pre arrival reporting information. The bill will clarify this matter and require compliance with the relevant provisions.

The amendment providing for maritime security plans and offshore security plans to have a life span of five years or less (but no less than 12 months) will significantly benefit maritime industry participants. It will also provide my Department with greater flexibility to effectively respond to changes in Australia’s security environment and the operational requirements of industry.

Clear and accurate mapping of security regulated port boundaries and maritime security zones are key elements in an effective maritime security regime. At present there is much variation between approaches to the format, quality and accuracy of maps that must be submitted when considering a security plan for approval.

The bill will provide greater certainty for industry when preparing such maps by providing for regulations to be made to establish nationally consistent mapping standards.

The bill contains several minor, miscellaneous amendments to rectify drafting errors and anomalies in the maritime security Act. These amendments provide greater clarity and certainty for industry participants who play an integral role in implementing and maintaining the maritime security regime.

The regulatory security frameworks for both the aviation and maritime sectors centre on the development of preventive security plans or programs. The plans and programs set out security measures and procedures to be implemented to safeguard against acts of unlawful interference with aviation and maritime transport.

It is common for industry participants to conduct multiple operations or operate at different geographical locations. Presently, it is not clear whether the maritime or aviation security Acts allow for industry participants to hold more than one security plan or program.

To remove all doubt, the bill will clarify in the relevant maritime and aviation legislation that industry participants may hold different security plans or programs for each location or operation, with the approval of the Secretary of my Department.

Conclusion

The Transport Security Amendment (2008 Measures No. 1) Bill 2008 will add greater certainty and clarity to the operation of the maritime and aviation security regimes, for the benefit of our maritime, offshore and aviation industries.

I am confident the measures introduced in this bill will enable industry participants to more confidently interpret, implement and administer the legislation as it relates to their daily business practices and that this will, in turn, strengthen Australia’s transport security regime.

CUSTOMS AMENDMENT (AUSTRALIA-CHILE FREE TRADE AGREEMENT IMPLEMENTATION) BILL 2008

These Agreement negotiations were concluded on the 27 May 2008 by the Minister for Trade, Simon Crean and the Chilean Foreign Minister, Alejandro Foxley, with the Agreement being signed by the Minister for Foreign Affairs, Stephen Smith and Alejandro Foxley on the 30 July 2008, during Mr Foxley’s visit to Australia.

The Australia-Chile Free Trade Agreement is expected to enter into force on 01 January 2009.

The Free Trade Agreement is a comprehensive and wide ranging Agreement that provides Australia and Chile with more liberal access to each other’s goods and services. The Agreement re-affirms the close relationship between Australia and Chile, and will contribute to greater growth, prosperity and security in the region.

Implementing Legislation

In order to implement the Agreement, two pieces of legislation require amendment – the Customs Act 1901 and the Customs Tariff Act 1995.

The Customs Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008 contains proposed amendments to the Customs Act 1901.

These amendments provide the rules for determining whether goods originate in Chile and introduce powers to allow Customs to obtain manufacturing records from Australian exporters and producers.

The amendments will give effect to Australia’s obligations under Chapter 4 of the Australia–Chile Free Trade Agreement. Chapter 4 provides the rules for determining whether goods originate in Australia or Chile. The rules are essential for the purposes of determining whether imported goods from Chile are eligible for preferential customs duty rates under the Agreement.

This bill will be complemented by the Customs Tariff Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008.

Goods will be considered to originate in Chile for the purposes of providing a preferential duty rate if they are wholly obtained or wholly produced in Chile or if they meet the product specific rules of Annex 4-C of the Agreement.

The product specific rules use the “Change in Tariff Classification” concept as used in previous Australian Free Trade Agreements. Under the change in tariff classification rules, origin will be conferred on a product where the tariff classification of each non-originating material (in this case, a material from outside Chile and Australia) used in the manufacture of the product is different from the tariff classification of the good. The rules are a means of demonstrating that there has been substantial transformation of the non-originating material inputs.

For certain goods, the change in tariff classification rule is combined with a regional value content.

Customs will also have the powers to obtain manufacturing records of Australian exporters and producers to verify that the goods that they export to Chile were produced in Australia.

The bill I introduce today will reinforce the contribution of both countries to the multilateral trading system and serve as an excellent model for other APEC economies as they work towards deeper economic integration.

CUSTOMS TARIFF AMENDMENT (AUSTRALIA-CHILE FREE TRADE AGREEMENT IMPLEMENTATION) BILL 2008

The Customs Tariff Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008 contains amendments to the Customs Tariff Act 1995 to implement part of the Agreement by:

• providing duty-free access for certain goods and preferential rates of customs duty for other goods that are Chilean originating goods;
• phasing the preferential rates of customs duty for certain goods to zero by 2015; and
• creating a new Schedule 7 to the Tariff to accommodate those phasing rates of duty.

This bill will complement the amendments contained in the Customs Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008.

Debate (on motion by Senator McLucas) adjourned.

Ordered that the Customs Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008 and the Customs Tariff Amendment (Australia-Chile Free Trade Agreement Implementation) Bill 2008 be listed on the Notice Paper as one order of the day, and the remaining bills be listed as separate orders of the day.