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Passenger Movement Charge Amendment Bill 2001

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1998-1999-2000-2001

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2001

 

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

(Amendment to be moved on behalf of the Government)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Justice and Customs,

Senator the Honourable Christopher Martin Ellison)

 



PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2001

 

OUTLINE

 

The purpose of the amendment to the Passenger Movement Charge Amendment Bill 2001 is to exempt certain departures of persons from Australia on or after

1 July 2001 from the increase in the rate of the Passenger Movement Charge to $38.  These are departures that are made by a person using a ticket or equivalent authority where the ticket or authority was sold or issued before 1 July 2001.

 

FINANCIAL IMPACT STATEMENT

 

The exemption of these departures of persons from Australia is expected to reduce the increased revenue from the increase of the Passenger Movement Charge by approximately $9 million.

 

 



PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2001

 

 

Amendment 1

 

This amendment amends item 2 of Schedule 1 to the Passenger Movement Charge Amendment Bill 2001 (the Bill) by omitting “1 July 2001” and substituting “1 July 2001 unless:

 

          (a) a person departs using a ticket or equivalent authority; and

          (b) the ticket or authority was sold or issued before 1 July 2001.”

 

Item 2 of Schedule 1 to the Bill contains the application provision for the increase of the Passenger Movement Charge (the Charge) to $38.  Currently, it provides that the increase applies in relation to the departure of a person from Australia on or after 1 July 2001.

 

Currently, for departures from Australia on commercial and charter airlines and passenger ships, the Charge is collected entirely under arrangements made under section 10 of the Passenger Movement Charge Act 1978 (the Charge Act).  Airlines and shipping companies periodically remit to the Commonwealth an amount equal to the Charge payable by departing passengers that are covered by a relevant arrangement.  Where this amount is paid, the departing passenger is deemed to have paid the Charge.  In accordance with these arrangements, an amount equal to the Charge may be collected from a passenger up to twelve months prior to their departure. 

 

Airlines have indicated to the Government that they have already sold several hundred thousand tickets for departures on or after 1 July 2001 and have collected only the current amount of the Charge from passengers ie, $30.  Under the arrangements, however, the airline would be required to remit to the Commonwealth the increased amount of the Charge for each departure after

1 July 2001 and thereby bear the additional $8 in respect of each such departure. 

 

Therefore, it is proposed to move a Government amendment to the application provision in the Bill.  It is proposed that the increase in the Charge will not apply to a departure of a person from Australia on or after 1 July 2001 where the person departs using a ticket or an equivalent authority and the ticket or authority was sold or issued before 1 July 2001.