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Passenger Movement Charge Amendment Bill 2008

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2008

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2008

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Home Affairs,

the Honourable Bob Debus)

 

 

 

 



PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2008

 

OUTLINE

 

The purpose of this Bill is to amend the Passenger Movement Charge Act 1978 to increase the rate of the Passenger Movement Charge (the Charge) by $9, to $47, with effect from 1 July 2008. 

 

The increase, announced by the Treasurer in the 2008-09 Budget, will partially fund national aviation security initiatives that are funded by the Australian Government. 

 

Since 2001, the Australian Government has spent approximately $1.2 billion implementing a significant number of national aviation security measures.  Up until the 2011-2012 financial year, spending on national aviation security measures is expected to exceed $2.2 billion.  Currently these costs are not recovered as part of the Charge.

 

The $9 increase, as recommended by the central economic agencies and accepted by the Government, is consistent with the amount by which the Charge would have increased had the Charge been indexed over the period since it was last increased on 1 July 2001.

 

Certain departures of persons from Australia on or after 1 July 2008 will be exempt from the increase in the rate of the Charge.  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 2008.

FINANCIAL IMPACT STATEMENT

 

The increase of the existing $38 Charge to $47 is expected to result in an increase in revenue of $459.3 million over four years.

 

 



PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2008

 

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

This clause provides for the Bill, when enacted, to be cited as the Passenger Movement Charge Amendment Act 2008 .

 

Clause 2 - Commencement

 

This clause provides for the Bill to commence on 1 July 2008.

 

Clause 3 - Schedules

 

This clause is the formal enabling provision for the Schedule to the Bill, providing that each Act specified in a Schedule is amended in accordance with the applicable items of the Schedule.  In this Bill the Act being amended is the Passenger Movement Charge Act 1978 .

 

The clause also provides that the other items of the Schedules have effect according to their terms.  This is a standard enabling clause for transitional, savings and application items in amending legislation.  In this Bill there is an application provision in item 2 of Schedule 1.

 

Schedule 1 - Amendment

 

Item 1 - Section 6

 

This item amends section 6 of the Passenger Movement Charge Act 1978 (the Act) to increase the rate of the charge imposed by the Act from $38 to $47.

 

Item 2 - Application

 

This item provides that the amendment of the Act made by this Bill applies to the departure of a person from Australia on or after 1 July 2008, unless the person departs using a ticket or equivalent authority and the ticket or authority was sold or issued before 1 July 2008. 

 

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 Collection Act 1978 .  Airlines and shipping companies periodically remit to the Commonwealth an amount equal to the Charge payable by departing passengers (which is payable at the rate in force on the date of departure).  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. 

 

By the time the Bill receives the Royal Assent, airlines will have already sold several hundred thousand tickets for departures on or after 1 July 2008 and will have collected only the current amount of the Charge from passengers ie, $38. 

 

The application clause will ensure that the increase in the Charge will not apply to a departure of a person from Australia on or after 1 July 2008 where the person departs using a ticket or an equivalent authority and the ticket or authority was sold or issued before 1 July 2008.  Therefore, airlines will only be required to remit $38 to the Commonwealth in respect of each such departure.