Bills Digest no. 116 2007–08
Passenger Movement Charge Amendment Bill 2008
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Passenger Movement
Charge Amendment Bill 2008
Date introduced:
28 May 2008
House: House
of Representatives
Portfolio: Home
Affairs
Commencement: 1
July 2008
Links: The relevant
links to the Bill, Explanatory Memorandum and second reading speech
can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/. When Bills
have been passed they can be found at ComLaw, which is at http://www.comlaw.gov.au/.
The purpose of the Bill is to provide for an increase
in the rate of the Passenger Movement Charge from $38 to $47 – an increase
of $9.
The Passenger Movement Charge is a charge which is imposed on a passenger
departing from Australia and is collected by airlines and shipping companies
at the time of the passenger’s purchase of their ticket. The collected
charge is then passed onto to the Commonwealth pursuant to arrangements
entered into under Section 10 of the Passenger Movement Charge Collection
Act 1978 (the Act).
In the 2008-09 Budget, the Federal Treasurer Mr Wayne Swan, announced
this increase and explained that it would be used to partially fund national
aviation security initiatives that are otherwise funded by the Federal
Government. However, it is unclear as to precisely which parts of aviation
security will enjoy the benefits of this funding. Opposition member Chris
Pyne, MP, has claimed for example, that Australian Customs have had their
budget cut by 3.4 per cent.[1]
According to the Explanatory Memorandum, significant aviation security
measures have been created and introduced since 2001 with a cost of around
$1.2 billion. Given the commitments that the Government is making up until
2011-12, these costs are estimated to reach over $2.2 billion and presently,
these costs are not covered as part of the Passenger Movement Charge.
[2]
According to the second reading speech, the proposed $9 increase by central
economic agencies has been accepted by the Government as being basically
in conformity with what the charge would have grown by had it been indexed
over the period since its last increase from $30 to $38 as part of the
2001-02 Budget.[3] However,
the second reading speech is silent on which central agencies in particular
have recommended this increase.
The increase in the Passenger Movement Charge will only apply to tickets
sold after 1 July 2008.
According to the Explanatory Memorandum, it is anticipated that the $9
increase in charge will produce an increase in revenue of $459.3 million
over four years.[4]
Item
1
This item amends section 6 of the Act which prescribes the passenger
movement charge. The amendment increases the Passenger Movement Charge
by replacing the amount $38 with the amount $47.
This item provides that the amendment made by item 1 applies to the departure
of a person from Australia on or after 1 July 2008, unless the person
departs using a ticket where that ticket was sold or issued before 1 July
2008.
Juli Tomaras
29 May 2008
Bills Digest Service
Parliamentary Library
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