Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) 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—

This Bill delivers on the Government’s commitment to reduce business compliance costs for excise liable businesses.

These taxpayers, operating under the existing standard seven-day excise settlement period, beginning Monday and ending Sunday, will become eligible to apply for a new weekly period, to begin on their preferred day.

The codification of the seven-day period will provide certainty to businesses. Furthermore, the flexibility to choose the particular seven-day cycle that best suits the business’s commercial practice will reduce their administration costs.

Most importantly, small businesses will be able to apply for a permission to defer their excise settlement to a monthly reporting cycle, with a further 21 days from the end of the month to remit their tax liability. This will considerably reduce the administration and cash management burden on small businesses.

For example, a small business would previously have paid excise to the ATO every seven days although their typical business terms may be for a 30 day settlement. This Bill gives small businesses at least 21 days, and up to 51 days, to remit their tax liability – which will significantly help with their cash management.

Furthermore, small businesses will be required to lodge only 12 returns per year, as opposed to 52 returns per year under the current arrangements.

Under this Bill, business entities with no duty liabilities may have the terms of their seven day or monthly permission amended to a longer reporting cycle at the discretion of the Tax Commissioner.

If a business’s permission relates to gaseous fuel on a seven-day permission, this bill will allow that business to give the Commissioner a return, on or before the sixth business day following the end of each seven-day period. This Bill also ensures that the existing monthly settlement arrangement for stabilised crude oil and condensate will remain unchanged.

These arrangements reflect the particular commercial circumstances of the gaseous fuel, stabilised crude oil and condensate industries.

Full details of the amendments in this Bill are contained in the combined explanatory memorandum.

This is the second of the Bills that deliver on this Government’s commitment to reduce business compliance costs for businesses dealing with goods liable for excise and excise equivalent customs duty.

This Bill amends the Customs Act 1901 to codify administrative arrangements relating to periodic settlement permissions in relation to customs duty.

The amendments establish a flexible seven day permission cycle for the giving of returns and the payment of excise equivalent customs duty. When the seven day permission is for gaseous fuels, the permission holder may give their return and pay customs duty up to six business days following the end of the seven day period.

Additionally, small business entities, prescribed persons and producers of prescribed goods will be able to apply for a permission to defer their customs duty settlement to a monthly reporting cycle.

Full details of the amendments in this Bill are contained in the combined explanatory memorandum.

Debate adjourned.