Bills Digest No. 199  1998-99 Aviation Fuel Revenues (Special Appropriation) Amendment Bill 1999


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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
Main Provisions
Endnote
Contact Officer and Copyright Details

Passage History

Aviation Fuel Revenues (Special Appropriation) Amendment Bill 1999

Date Introduced: 2 June 1999

House: House of Representatives

Portfolio: Transport and Regional Services

Commencement: On Royal Assent

 

Purpose

The major amendments proposed by the Bill:

  • allow for revenues raised by excise and customs duties on aviation gasoline and kerosene to be dealt with on the same basis for purposes of disbursement to Airservices Australia (AA) and the Civil Aviation Safety Authority (CASA) and
  • repeal the requirement that the Minister consult with the Board of AA and CASA with respect to the rate of excise and customs duties on aviation gasoline and share of such revenues.

 

Background

Refer to the Digest for the Customs Tariff Amendment (Aviation Fuel Revenues) Bill 1999.

 

Main Provisions

A new definition of 'eligible aviation fuel' is substituted in the Aviation Fuel Revenues (Special Appropriation) Act 1988 (the Principal Act) by item 1 of Schedule 1 which provides that the term means:

  • aviation gasoline entered for home consumption on or after 1 July 1988, and
  • aviation kerosene entered for home consumption on or after 12 May 1999.

The current definition defines the term to mean aviation gasoline entered form home consumption on or after 1 July 1988. The effect of the amendment is to allow for revenues raised by excise and customs duties on aviation gasoline and kerosene to be dealt with on the same basis for purposes of disbursement to AA and CASA. The Principal Act currently provides for disbursements on slightly different basis.

Section 68 of the Customs Act 1901 requires that goods, other than certain specified goods, that are imported into Australia must be 'entered' for home consumption, warehousing, or transhipment. Until goods are entered customs duty cannot be levied and the goods cannot be delivered from the control of the Australian Customs Service. An entry can be effected by document or by computer.

Accompanied or unaccompanied personal or household effects of a passenger or member of crew of a ship or aircraft, that are not intended to be sold or used for trading purposes in Australia, and goods being consigned from one person to another, by post, where their value is less than $1 000, or where their value is less than $200, and certain containers, are exempted from the import entry obligation.

Section 3A of the Principal Act provides the Minister with power to make a determination setting the rate of aviation gasoline under the Excise Tariff Act 1921. Subsection 3A(2A) provides that a ministerial determination may only be made after the Minister has consulted with the Board of Aviation Australia (AA) and the Civil Aviation Safety Authority (CASA). Item 2 of Schedule 1 repeals subsection 3A(2A) of the Principal Act.

Note: The rationale given by the Government for the amendment proposed by item 2 is: 'Determining these matters [ie. setting the rate of duty payable and shares of revenue between CASA and AA] is a Government responsibility on which legislated consultation is now not considered appropriate. However the Minister will continue to consult with the Boards of CASA and Airservices as appropriate.'(1)

Item 4 of Schedule 1 repeals section 6 of the Principal Act. Section 6 currently provides for payments of money raised from excise and customs duties in relation to aviation kerosene to be paid to CASA. The amendment is being repealed as it will be redundant with the passage of the amendment proposed by item 1.

 

Endnote

  1. Aviation Fuel Revenues (Special Appropriation) Amendment Bill 1999, Explanatory Memorandum, p. 2.

 

Contact Officer and Copyright Details

Ian Ireland
11 June 1999
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

IRS staff are available to discuss the paper's contents with Senators and Members
and their staff but not with members of the public.

ISSN 1328-8091
© Commonwealth of Australia 1999

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1999.

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