Mr TRUSS (Customs and Consumer Affairs) (9:37 AM) —I move:

That the bill be now read a second time.

The Customs and Excise Legislation Amendment Bill (No. 1) 1998 , which is now before the House, contains a number of amendments to the Customs Tariff Act 1995. Most of the amendments have been previously tabled in this House as customs tariff proposals. I will briefly outline the amendments of substance.

Schedule 2 of this bill commenced on 3 July 1997. The customs duty on aviation gasoline, avgas, contains a component to recover the costs of aviation terminal and en route navigational services provided to the general aviation sector by Airservices Australia. In reviewing the costs of providing these services for 1997-98, Airservices Australia proposed a reduction in the duty of 0.6 cents per litre on avgas, which represents a five per cent decrease in real terms.

This reduction in costs to aircraft operators follows the implementation of an election commitment by this government. This commitment was to freeze the airways component of avgas duty in 1996-97, except for movements in the consumer price index, while working towards the implementation of a fairer system of funding for the general aviation sector's contribution to Airservices Australia. The component of duty on avgas payable to the Civil Aviation Safety Authority for the costs of aviation safety regulation remains unchanged.

The amendments contained in schedule 3 of this bill came into effect on 31 January 1998. The reduction in duty rates on avgas in schedule 2 of this bill would have been superseded by the commencement of the Customs Tariff (Fuel Rates Amendments) Act 1997 on that date. By customs tariff notice published in the Commonwealth Gazette on 18 February 1998, the reduced customs rate of duty on avgas was reinstated.

The other amendment contained in this schedule is of an administrative nature and results again from amendments contained in the Customs Tariff (Fuel Rates Amendments) Act 1997. Section 19 of the Customs Tariff Act 1995 contains a table of paired customs subheadings and excise items. This section provides the duty nexus between customable and excisable revenue goods by allowing customs rates of duty to be adjusted in line with movements in the excise rate of duty. The amendment amalgamates the table existing prior to 31 January 1998 with the new aspects introduced by the customs fuel rates legislation. Schedule 4 is operative from 1 March 1998 and creates a new item 64 in schedule 4 to the Customs Tariff Act 1995.

At its meeting on 27 August 1997, the Ministerial Committee on the Sydney 2000 Olympic Games agreed to introduce certain import concessions for the 2000 Olympic and Paralympic Games and associated test events. As a result, amendments to the temporary import provisions have been finalised and a new passenger concession by-law for unaccompanied baggage for Olympic family members has been implemented by the Australian Customs Service. This amendment creates a new item in schedule 4 to allow non-personal and non-commercial goods to be imported into Australia duty free by Olympic Games family members.

The reality of the Olympics and associated events is that members of the Olympic family will bring with them a variety of goods which are to be used in a non-commercial manner. These will include give-aways, hospitality samples and other consumables that will be used for team promotion and for cultural and hospitality activities. It is intended that the concession will not apply to tobacco and alcoholic products or extend to any importations of a commercial nature. Similar concessions were offered at the Nagano Winter Olympics and by host countries at previous summer and winter Olympic and Paralympic Games. The amendments contained in the other schedules of this bill are of an administrative or technical nature and will have no impact on the importing public. I commend the bill to the House and present the explanatory memorandum.

Debate (on motion by Mr O'Connor) adjourned.