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Tuesday, 24 May 2011
Page: 4451

Mr BRADBURY (LindsayParliamentary Secretary to the Treasurer) (19:06): I would like to thank all the members who contributed to the debate on the Tax Laws Amendment (2011 Measures No. 3) Bill 2011. Schedule 1 to this bill provides a 12-month export period for the GST-free supply of recreational boats. This removes a competitive disadvantage that the Australian boating industry faces due to Australia's geography. The distance and sailing conditions between Australian and foreign ports makes it difficult for the boat buyers intending to have an extended sailing holiday before leaving Australia to meet the normal 60-day export requirement under the GST legislation and so purchase the boat GST free. This is easier to do in several other countries. The supply of the boat will be GST free if the boat is exported from Australia within 12 months of delivery. The boat must be a new boat of the kind used for recreational purposes. The boat also must not be used for commercial or financial gain before it is exported.

The measure is in addition to the standard 60-day export period for goods. The schedule applies to contracts entered into on or after 1 July 2011. This measure will assist Australian boat builders to compete in the international market for recreational boats. Regional ports will also benefit as boat buyers are encouraged to take an extended sailing holiday in Australia before leaving with their boats.

Schedule 2 removes the technical deficiency in the tax law and provides for the effective and uninterrupted collection of general interest charges. This ensures that all taxpayers will be subject to general interest charges if they have not paid their income tax or shortfall interest charge liabilities on time. The bill deserves the support of the parliament.

Question agreed to.

Bill read a second time.

Message received from the Administrator recommending appropriation announced.

Ordered that this bill be reported to the House without amendment.